Arbitrum DAO has spent hundreds of thousands on incentives in hopes of attracting extra customers. Nevertheless, the beneficial properties didn’t stick, in accordance with one Web3 advertising and marketing studio.
Arbitrum (ARB) DAO lately got here beneath criticism for its means 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 packages.
Arbitrum DAO has poured hundreds of thousands into incentive packages (STIP, LTIPP), aiming to carry extra customers, TVL, and quantity into the ecosystem.
However many of those packages had one factor in frequent:
📉 The beneficial properties 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 value.
“The beneficial properties have been short-lived. Metrics dropped quickly after the campaigns ended,” Pink Brains on incentives packages.
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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 observe ROI: Pink Brains
To treatment this example, the company proposed that tasks that obtain funds ought to set clear efficiency indicators. The purpose 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 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 help, the holders permitted 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 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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