Arbitrum Dao has spent millions of incentives in the hopes of attracting more users. However, according to one Web3 marketing studio, profits did not stick.
Arbitrum (ARB) DAO has recently been criticized for its ability to retain users. On April 4th, Pink Brains, a marketing studio specializing in Crypto and Web3, outlined the issues with network incentive programs.
Arbitrum Dao has poured into millions of incentive programs (STIP, LTIPP) with the aim of bringing more users, TVL, and volumes into the ecosystem.
However, many of these programs had one thing in common.
The gate gain was short-lived. The metric was removed shortly after the campaign ended.
– Pinkbrains_io (@pinkbrains_io) April 4, 2025
The agency pointed out several core issues, including a lack of off-chain marketing, weak tracking of key performance metrics, and minimal analysis of return on investment. A recent survey cited by Pink Brains revealed that only 21% of protocols know customer acquisition costs.
“The profits were short-lived. The metrics fell short right after the campaign ended,” Pink Brains said in the incentive program.
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Even more noteworthy, none of the respondents recognized the lifetime value of the users. This is a basic metric when evaluating the success of a marketing campaign.
Arbitrum Dao needs to track ROI: Pink Brain
To remedy this situation, the agency suggested that projects receiving funds should set clear performance metrics. The goal of this approach is to discover which type of incentive is best and to measure the ROI of the protocol. The agency emphasized that these measured some of the recent Arbitrum DAO proposals but did not pass.
Arbitrum first launched its short-term incentive program in January 2024, a one-time distribution of 50 million ARB active projects. However, to provide more long-term support, holders have approved the Long-Term Incentive Pilot Program.
Arbitrum’s locked total value fell from a history-high $3.454 on December 14th to its current $2.422 billion. The token itself reached January 12th, down 86.94% since its all-time high of $2.40.
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