Balancer DAO, like many other decentralized autonomous organizations (DAOs), is already discussing how to spend its 3 million ARB allocation.
On Monday, the DAO received its share of Arbitrum’s 1.13% token allocation for DAOs. Prior to this, members of the Balancer community had already begun talks on how to utilize the airdrop (currently valued at around $4.17 million).
A key member of the Balancer DAO known as Solarcurve suggested keeping the majority of the funds “as a long-term bet on Arbitrum’s future” while spending a portion on accelerating Balancer’s growth. He explained that Arbitrum had shown some promising early signs and betting on the future of the protocol could position Balancer as a top DEX on Arbitrum.
That said, Solarcurve feels the DAO should channel 1M ARB towards a voting incentive matching program and use the remaining 2M ARB to launch protocol-owned liquidity paired 50/50 with BAL.
“By increasing BAL liquidity on Arbitrum we make it easier for second-order integrations like auto-compounders to support Balancer pools,” he said.
So far, Solarcurve’s recommendations have been widely welcomed by the DAO, with a few suggestions from other users. Andrej proposed using the tokens to participate in Arbitrum’s governance. He explained:
The vote could be executed similarly to how votes are done for on Balancer by Aura. This could be viewed as a marginal utility for veBAL holders and furthermore strengthen the role of veBAL holders in the Arbitrum ecosystem.
Meanwhile, C0_G1 was onboard the incentive matching program but advised distributing the 2 million ARB across various fee-generating initiatives based on their risk-reward profile.