Weeks after initiating talks on how to spend its 3 million ARB token allocation from Arbitrum, Balancer DAO has reached a decision on how to distribute its share of the airdrop. 1 million ARB will be channeled toward LP incentives while the remaining 2 million tokens will be used to deploy protocol-owned liquidity in an ARB/BAL/AURA 33/33/33 pool.
As reported by Masternode Buzz, Balancer DAO began discussing how to spend its 3M ARB allocation in April. The group finally decided on Monday night after a governance vote. Approximately 100% of the voting power rallied behind the idea, with just 0.02% opposing the idea.
Moving forward, Balancer will allocate 1 million ARB towards direct LP incentives. The author of the proposal, Solarcurve, argues that this is “the most direct growth mechanism.” On this note, the proposal recommends a 10-round liquidity mining campaign that aligns with Aura’s two-week cycle of voting incentive allocations. Each round will be capped at 100k ARB, with any unspent ARB returned to the treasury.
As for the remaining 2 million tokens, Aura recently passed a proposal indicating its interest in deploying protocol-owned liquidity in an ARB/BAL/AURA 33/33/33 pool.
“This creates TVL, volume, and revenue that we don’t need to spend incentives on. By increasing BAL & AURA liquidity on Arbitrum we make it easier for second-order integrations like auto compounders to support Balancer pools,” Solarcurve wrote.