Optimism RetroPGF3: how it compares to Arbitrum STIP and what it means for OP
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Argues RPGF3 is similar to STIP as treasury funding (30M OP, over $60M vs about $70M for STIP) but retroactive and broader, so less mercenary farming and a smaller OP-season effect. Expects retroactive DAO funding to be a 2024 narrative.
Key claims
30M OP up for grabs, over $60M at time of writing
STIP distributed about $70M
Grants paid out over 90 days after KYC
Everyone seems to be bullish RetroPGF3! 🔴✨
OP just pumped 25% over night amid the closing of RPGF voting period! 📈🚀
Let me answer the key questions going forward! 👇
So, what impact will RPGF3 have on the OP ecosystem? 🤔👇
Is this comparable to Arbitrum STIP?
Yes and no.
Yes, because like with Arbitrum, this is a grant scheme in which the treasury funds are distributed to contributors in the ecosystem.
No, because the approach and focus are very different.
STIP is primarily geared towards driving growth in the Arbitrum ecosystem, enabling protocols that have significantly contributed to the ecosystem, to fund user / community incentives.
RPGF on the other hand is more inclusive and rewards ecosystem contributions of any kind, retroactively and based on specific impact that was created for the Optimism ecosystem.
Will it have the same impact (OP season)?
Maybe to some degree, but not really imo.
The funding will definitely help protocols and content creators and drive further ecosystem growth. With 30m OP up for grabs (> $60M at time of writing), there is also a comparable amount of funding to be distributed (about $70M in STIP). However, there will be considerably less OP available to protocols that might use them for user incentives than in the STIP program. Hence, the inflow of mercenary capital and degen farming activity will likely be lower in the OP case.
However, I do think that there are a couple of soft factors to be considered as well. Many individual content creators, education projects, tool builders, etc. will receive an early Christmas present here thanks to RPGF3. This will likely increase dedication to the ecosystem. Also, more importantly, it will likely incentivize / encourage new builders, new writers and new users to join the ecosystem, driving the public discourse around Optimism and its ecosystem and keeping the attention levels high. This can be very powerful and I'm excited to see how it actually plays out.
Will this have an impact beyond the OP ecosystem?
Yes. In this public good funding effort, @OptimismFND is distributing grants to many projects and individuals that contribute across multiple ecosystems in the Ethereum / L2 space. This will drive growth across the board, not just within the OP universe.
Also, this retroactive public goods funding mechanism has been a great experiment for attributing value to various forms of community contributions. It has put eyes on the ecosystem, has created healthy discussions around what is worth funding and will make and will enable various actors across the ecosystems to improve and increase their activities going into the new year.
This confluence of positive impacts creates a powerful mix that will likely lead to other projects adopting this RGPF approach going forward. I strongly believe that retroactive funding from DAO treasuries will become a narrative through 2024. Personally for example, I have also contributed to Namada's community builder program and just received my retroactive funding grant today. I plan to continue to contribute to various ecosystems by providing public good educational resources and I encourage everyone to put their strengths to work to join me on this (highly rewarding) mission!
What's the timeline?
I expect the results to be published very soon! After the result publication, there will be a short period for projects to complete KYC. Subsequently the allocated grant funding will be distributed to projects over a 90 day period.
Staying optimistic & very excited to be on this journey with y'all! Follow me @zerokn0wledge_ to stay up to date on all things L2 and @OptimismFND in specific! 🔴✨
QUOTING @zerokn0wledge_
📊 Optimism RetroPGF3 - Update & Conclusion We made it! All the RPGF3 applications I asked you to support were approved! 🎉❤️ Time for a few quick thoughts & insights! 🔴✨ First of all, a heartfelt thank you to all the badgeholders that made this happen! 🫶 🎉 @zerokn0wledge_ 24/1
📊 Optimism RetroPGF3 - Update & Conclusion We made it! All the RPGF3 applications I asked you to support were approved! 🎉❤️ Time for a few quick thoughts & insights! 🔴✨ First of all, a heartfelt thank you to all the badgeholders that made this happen! 🫶 🎉 @zerokn0wledge_ 24/1
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What came next · since 08 Dec 2023
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Zero has written 7 more pieces on Optimism and $OP since this one.
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