Arbitrum DAO has spent tens of millions on incentives in hopes of attracting extra customers. Nevertheless, the features didn’t stick, in accordance with one Web3 advertising studio.
Arbitrum (ARB) DAO lately got here beneath criticism for its capability to retain customers. On April 4, Pink Brains, a advertising studio specializing in crypto and Web3, outlined points with the community’s incentive applications.
The company pointed to a number of core points, together with an absence of off-chain advertising, weak monitoring of key efficiency metrics, and minimal evaluation of potential return on funding. A current survey cited by Pink Brains revealed that solely 21% of protocols knew their buyer acquisition price.
“The gains were short-lived. Metrics dropped soon after the campaigns ended,” Pink Brains on incentives applications.
Much more notably, not one of the respondents have been conscious of their customers’ lifetime worth—a basic metric in evaluating the success of any advertising 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 strategy is to find what sort of incentives work finest, and to measure the ROI for the protocol. The company highlighted that these measures part of a current Arbitrum DAO proposal, which didn’t go.
Arbitrum first launched short-term incentive program, a one-time distribution of fifty million ARB energetic tasks in January 2024. Nevertheless, to offer a extra long-term assist, the holders accredited the long-term incentives pilot program.
Arbitrum’s whole worth locked dropped from its all-time excessive of $3.454 on December 14 to its present stage 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.
