Over a three-year period, the Arbitrum Startup Collective will act as an investment vehicle to funnel capital into up to 150 Arbitrum-focused startups from seed through Series A stage.
Arbitrum is a leading layer-2 blockchain network with over $3 billion in total value locked.
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Posted on May 30, 2024 at 6:32pm EST.
Arbitrum’s governance members are currently considering a new $50 million proposal to build a successful venture ecosystem.
Scott Coren, founding partner at investment accelerator Elixir Capital, said: Submitted a governance proposal The company funded ArbitrumDAO on Thursday, aiming to establish a program to fund high-quality early-stage startups building on layer-2 blockchain networks.
The program, called the “Arbitrum Startup Collective,” aims to “invest in up to 150 Arbitrum-based startups through a $50 million dedicated investment vehicle” over three years, according to a proposal at Arbitrum’s governance forum.
According to Coren, the goal is to increase Arbitrum’s adoption among developers and decentralized applications, as well as to increase ArbitrumDAO’s treasury through investment returns. Additionally, “Elixir Capital has been appointed as an external service provider to manage and oversee the day-to-day operations of the Arbitrum Startup Collective.”
A big inspiration for this governance proposal comes from other ecosystems, namely Solana and Polygon, who have venture-style ecosystem development programs like the Polygon Accelerator and the Solana Ecosystem Fund. While Arbitrum currently has programs that cater to both ends of the startup growth spectrum, “there is a clear gap at the seed to Series A level,” Coren added.
read more: ETH held in Arbitrum smart contracts nears all-time high
The proposal is in the early stages of Arbitrum’s governance process, which is deliberating on various elements of the program, but has not yet received any comments.
The next step after healthy discussion about the nuances of the program will be for Elixir Capital to conduct a formal temperature check using snapshot polling, a common off-chain mechanism used to gauge sentiment on governance proposals.
The proposal was made by Arbitrum’s governance members Currently voting on-chain Separate proposal Promoting the growth of the gaming ecosystemUnlike the Arbitrum Startup Collective proposal, the gaming proposal is in the final stages of its governance cycle, and ARB token holders have been hammering out the details. march And already Temperature Check.
If passed, 200 million ARB will be awarded in the on-chain vote that ends next Friday. [worth about $226 million] Over the next three years, we will be expanding the Arbitrum gaming ecosystem.”
read more: Arbitrum Community Expresses Near-Unanimous Approval for Gaming Catalyst Program
According to CoinGecko data, the price of Arbitrum’s native token, ARB, has risen 16% over the past 14 days but has fallen about 2% over the past 24 hours, trading at $1.13 at the time of writing.
