Arbitrum DAO has spent thousands and thousands on incentives in hopes of attracting extra customers. Nevertheless, the positive factors didn’t stick, in response to one Web3 advertising and marketing studio.
Arbitrum (ARB) DAO lately got here underneath criticism for its skill to retain customers. On April 4, Pink Brains, a advertising and marketing studio specializing in crypto and Web3, outlined points with the community’s incentive applications.
Arbitrum DAO has poured thousands and thousands into incentive applications (STIP, LTIPP), aiming to convey extra customers, TVL, and quantity into the ecosystem.
However many of those applications had one factor in widespread:
📉 The positive factors have 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 a scarcity of off-chain advertising and marketing, weak monitoring of key efficiency metrics, and minimal evaluation of potential return on funding. A latest survey cited by Pink Brains revealed that solely 21% of protocols knew their buyer acquisition price.
“The positive factors have been short-lived. Metrics dropped quickly after the campaigns ended,” Pink Brains on incentives applications.
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Much more notably, not one of the respondents have been conscious of their customers’ lifetime worth—a elementary metric in evaluating the success of any advertising and marketing marketing campaign.
Arbitrum DAO ought to monitor ROI: Pink Brains
To treatment this case, the company proposed that tasks that obtain funds ought to set clear efficiency indicators. The aim of this method is to find what kind of incentives work greatest, and to measure the ROI for the protocol. The company highlighted that these measures part of a latest Arbitrum DAO proposal, which didn’t cross.
Arbitrum first launched short-term incentive program, a one-time distribution of fifty million ARB lively tasks in January 2024. Nevertheless, to offer a extra long-term assist, the holders authorized 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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