A recent short-term incentives program (STIP) on the Arbitrum blockchain resulted in 29 projects receiving a total of $40 million worth of ARB tokens.

These projects presented their offerings to token holders, aiming to secure a portion of the 50 million ARB tokens allocated for distribution. This initiative concluded last Thursday.

The STIP (Staking Token Incentive Program) provides a one-time distribution of rewards, and those who receive these rewards cannot swap them for other tokens or engage in any governance activities. The grant proposal for this program was put forward and approved in September.

In this program, the trading protocol GMX received the most rewards, with 12 million ARB tokens, which are valued at just over $10 million. The next highest recipient was Gains Network, which received 7 million ARB tokens.

Interestingly, Lido Finance, a prominent platform for staking Ether, faced an unexpected setback as they received opposition from 43.4% of voters while 37.82% supported. As a result their grant proposal of 50M ARB was not approved. 

Concerns were raised that Lido Finance could potentially gain control over a significant portion of all staked Ether tokens, leading to this decision. 

These projects plan to utilize tokens as a way to offer more significant rewards to users who contribute to their protocols, like providing liquidity or utilizing their services. This strategy aims to attract more funds to the blockchain as traders search for profitable investment opportunities.

Also Read: Arbitrum Moves $59M Of Unclaimed Tokens To DAO Treasury