Arbitrum DAO Grants is a multi-program funding ecosystem that distributes ARB tokens from the Arbitrum DAO treasury to support builders, researchers, infrastructure teams, protocols, and community initiatives across the Arbitrum network.
Rather than operating as a single grant program, Arbitrum's funding ecosystem consists of multiple concurrent programs – including the Arbitrum Foundation Grant Program, the Domain Allocator Offerings (D.A.O.) Grant Program (formerly facilitated by Questbook), large-scale incentive programs, and specialized initiatives. Each program has distinct governance processes, eligibility criteria, and allocation mechanisms.
The ecosystem launched alongside the ARB token and Arbitrum DAO governance in March 2023, with the Foundation Grant Program beginning operations in July 2023. The DAO treasury – seeded with 42.78% of the 10 billion ARB token supply at genesis – serves as the funding base for these programs. Allocation decisions are made through a combination of ARB token holder votes, elected councils, delegated domain allocators, and Foundation-operated processes, depending on the program.
Grant programs range from milestone-based Foundation grants typically between $20,000–$150,000 in ARB to large-scale incentive initiatives distributing tens of millions of ARB to active protocols to drive ecosystem adoption and liquidity.
What This Program Does
Arbitrum DAO Grants provides structured funding pathways for projects building on Arbitrum – from early-stage developers to established protocols seeking growth incentives.
In practice, it enables:
- Application builders to receive milestone-based funding for dApps, infrastructure, and tooling through the Foundation Grant Program and D.A.O. Grant Program
- Active protocols to access large-scale ARB incentive allocations that drive user adoption, liquidity, and ecosystem activity
- Domain-specific contributors to apply through elected domain allocators specializing in gaming, developer tooling, education, and emerging protocol design
- Community organizations to propose and manage new grant programs through DAO governance
- Ecosystem partners to participate in co-funded initiatives such as Uniswap–Arbitrum collaborations and developer credit programs
This layered architecture allows the DAO to operate multiple funding channels simultaneously, each optimized for different project stages, domains, and governance models.
Features
Arbitrum DAO Grants combines DAO-governed treasury allocation with Foundation-managed programs and delegated allocator structures.
Major funding commitments are approved through ARB token holder governance, typically involving:
- Forum discussion
- Snapshot signaling
- Onchain execution via Tally
Operational programs then manage day-to-day grant review and milestone tracking.
Core Components
Arbitrum Foundation Grant Program
A milestone-based grant program operated by the Arbitrum Foundation.
- Typical grant size: $20,000–$150,000 in ARB
- Rolling applications
- Phased focus areas aligned with ecosystem priorities
- Milestone-based disbursement tied to deliverables
The program primarily funds dApps, infrastructure, and ecosystem tooling.
D.A.O. Grant Program (Domain Allocator Offerings)
A community-governed grants program structured across specialized domains.
- Community-elected domain allocators
- Domain-based budgets
- Independent review processes
- Iterative "seasons" with evolving funding allocations
Originally facilitated by Questbook, the program has grown across three seasons – from $250,000 across four domains in Season 1 to $1,000,000 per domain in Season 2, with Season 3 expanding to five domains. The model enables faster, domain-expert review while maintaining DAO oversight. –
Incentive Programs
Large-scale DAO-funded ARB distribution programs designed to drive protocol growth and ecosystem activity.
Examples include:
- Short-Term Incentive Program (STIP) – up to 50M ARB
- Long-Term Incentive Pilot Program (LTIPP) – 45M ARB
- DeFi Renaissance Incentive Program (DRIP) – ~80M ARB
These programs allocate ARB to active protocols that design and execute incentive campaigns for users. Recipients must provide dashboards, reporting, and impact metrics.
Specialized Initiatives
Targeted programs focused on strategic ecosystem priorities, including:
- Gaming Catalyst Program – 225M ARB for gaming ecosystem growth
- Stylus Sprint – 5M ARB supporting Stylus (WASM) development
- Trailblazer AI Grant Program – $1M supporting AI-native builders
These initiatives address specific growth verticals within the Arbitrum ecosystem.
Program Characteristics
- DAO-governed treasury allocation: Major capital commitments require ARB token holder approval through governance processes involving community discussion and onchain execution.
- Milestone-based disbursement: Foundation and D.A.O. grants tie funding to defined deliverables, with payments released upon milestone verification.
- Delegated domain allocation: Community-elected domain allocators enable specialized review in verticals such as gaming, developer tooling, and education.
- Transparency and reporting: Grantees – especially incentive recipients – are required to publish dashboards, metrics, and distribution data.
- Multi-program coordination: The Arbitrum Grant Hub aggregates information across active programs, helping applicants navigate available funding pathways.
Use Cases
dApp Builders Seeking Ecosystem-Specific Funding
Developers building decentralized applications on Arbitrum One or Nova apply for milestone-based funding through the Foundation or D.A.O. programs. Projects span DeFi, gaming, social platforms, developer tooling, and infrastructure. The Foundation prioritizes ecosystem-aligned categories, while D.A.O. domains provide specialized review.
Established Protocols Growing Arbitrum Adoption
Protocols operating on Arbitrum apply for incentive allocations through programs such as STIP, LTIPP, or DRIP. Applicants must submit governance proposals outlining incentive strategy, expected outcomes, and reporting plans. Continued funding depends on transparency and measurable ecosystem impact.
Developer Tooling and Infrastructure Teams
Teams building SDKs, security tooling, testing frameworks, shared libraries, and infrastructure apply through Foundation or D.A.O. developer tooling domains. The Stylus Sprint specifically supports projects leveraging Arbitrum Stylus and WASM-compatible smart contract development.
Community-Led Funding Experiments
Community members propose new grant structures via DAO governance. Initiatives such as Thank ARB, Grant Ships, and other experimental funding designs demonstrate how Arbitrum enables iterative, community-driven capital allocation without relying on a single permanent funding structure.