Arbitrum offers as much as $100k per report to snitch on wasteful DAOs
The post Arbitrum offers as much as $100k per report to snitch on wasteful DAOs appeared on BitcoinEthereumNews.com. In a move aimed at fighting grant mismanagement and exposing fraud, the Arbitrum DAO has announced that it will launch a grant bounty program that will pay as much $100,000 per report to individuals who report bad actors among its grant recipients. Arbitrum, one of Ethereum’s leading layer 2 networks, has been actively distributing ARB tokens to support the development of its ecosystem. Its DAO has reportedly rolled out several hundred million dollars in grants, service provider funding, and incentives; however, according to Entropy Advisors, there has been little oversight on how these funds are actually spent. Interestingly, recent investigations have uncovered at least three separate incidents of grant misappropriation. One of them was the Furucombo case. The Arbitrum foundation accused Furucombo of misusing the backfund STIP grant after it failed to file a final report on how it spent the grant. Along with other transgressions, the Arbitrum DAO banned Furocombo from the DAO after extensive voting. Another case is the Gaming Catalyst Program (GCP), which received 225 million ARB worth approximately $215 million in early 2024. The GCP team is embroiled in allegations of misappropriation, underreporting and lack of transparency in its grant issuance, with a proposal launched to claw back funding. Recognizing the potential for further undiscovered abuses, Entropy Advisors proposed a system to enable the community to report misuse with the incentive of significant monetary rewards. The grant misuse bounty initiative proposed by Entropy Advisors has been tagged “The Watchdog.” In its proposal, Entropy Advisors defined the misuse of funds as “Any action or inaction by a recipient of DAO-allocated funds that directly violates the stated terms, objectives, agreement, or overall spirit of the allocation under which those funds were provided.” How the Watchdog program works The Watchdog program, which is proposed to operate like the more…
The post Arbitrum offers as much as $100k per report to snitch on wasteful DAOs appeared on BitcoinEthereumNews.com.
In a move aimed at fighting grant mismanagement and exposing fraud, the Arbitrum DAO has announced that it will launch a grant bounty program that will pay as much $100,000 per report to individuals who report bad actors among its grant recipients. Arbitrum, one of Ethereum’s leading layer 2 networks, has been actively distributing ARB tokens to support the development of its ecosystem. Its DAO has reportedly rolled out several hundred million dollars in grants, service provider funding, and incentives; however, according to Entropy Advisors, there has been little oversight on how these funds are actually spent. Interestingly, recent investigations have uncovered at least three separate incidents of grant misappropriation. One of them was the Furucombo case. The Arbitrum foundation accused Furucombo of misusing the backfund STIP grant after it failed to file a final report on how it spent the grant. Along with other transgressions, the Arbitrum DAO banned Furocombo from the DAO after extensive voting. Another case is the Gaming Catalyst Program (GCP), which received 225 million ARB worth approximately $215 million in early 2024. The GCP team is embroiled in allegations of misappropriation, underreporting and lack of transparency in its grant issuance, with a proposal launched to claw back funding. Recognizing the potential for further undiscovered abuses, Entropy Advisors proposed a system to enable the community to report misuse with the incentive of significant monetary rewards. The grant misuse bounty initiative proposed by Entropy Advisors has been tagged “The Watchdog.” In its proposal, Entropy Advisors defined the misuse of funds as “Any action or inaction by a recipient of DAO-allocated funds that directly violates the stated terms, objectives, agreement, or overall spirit of the allocation under which those funds were provided.” How the Watchdog program works The Watchdog program, which is proposed to operate like the more…
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