The Arbitrum DAO has approved a governance proposal to fund ecosystem incentive programs, giving the community control over treasury resources for growth. This decision highlights the importance of DAO funding for Layer-2 networks competing to attract builders, users, and liquidity in a crowded space. The approval does not mean instant fund distribution; allocations can be staged with milestones and oversight requirements. The real challenge lies in whether incentives will generate sustainable activity rather than temporary reward-driven engagement.
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