Arbitrum DAO has spent tens of millions on incentives in hopes of attracting extra customers. Nonetheless, the positive factors didn’t stick, in line with one Web3 advertising studio.
Arbitrum (ARB) DAO just lately got here below criticism for its skill to retain customers. On April 4, Pink Brains, a advertising studio specializing in crypto and Web3, outlined points with the community’s incentive packages.
Arbitrum DAO has poured tens of millions into incentive packages (STIP, LTIPP), aiming to deliver extra customers, TVL, and quantity into the ecosystem.
However many of those packages had one factor in frequent:
📉 The positive factors had been short-lived. Metrics dropped quickly after the campaigns ended.
— Pink Brains (@PinkBrains_io) April 4, 2025
The company pointed to a number of core points, together with an absence of off-chain advertising, weak monitoring of key efficiency metrics, and minimal evaluation of potential return on funding. A current survey cited by Pink Brains revealed that solely 21% of protocols knew their buyer acquisition value.
“The positive factors had been short-lived. Metrics dropped quickly after the campaigns ended,” Pink Brains on incentives packages.
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Much more notably, not one of the respondents had been conscious of their customers’ lifetime worth—a elementary metric in evaluating the success of any advertising marketing campaign.
Arbitrum DAO ought to observe ROI: Pink Brains
To treatment this example, the company proposed that tasks that obtain funds ought to set clear efficiency indicators. The objective of this strategy is to find what sort of incentives work greatest, and to measure the ROI for the protocol. The company highlighted that these measures part of a current Arbitrum DAO proposal, which didn’t cross.
Arbitrum first launched short-term incentive program, a one-time distribution of fifty million ARB energetic tasks in January 2024. Nonetheless, to offer a extra long-term assist, the holders accepted the long-term incentives pilot program.
Arbitrum’s complete worth locked dropped from its all-time excessive of $3.454 on December 14 to its present degree of $2.422 billion. The token itself is down 86.94% since its all-time excessive of $2.40, which it reached on January 12.
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