February 23, 2024

February 23, 2024

How to maximize ROI & TVL from grant programs

In the world of web3 ecosystems, keeping tabs on grant projects is crucial for making sure resources are well-spent and innovation thrives. While blockchains are great for transparency, tracking these projects effectively can be tough. This article explores how combining on-chain and off-chain data helps keep tabs on grant projects, making funding more efficient and supporting long-term growth.

Off-Chain Data: Using GitHub for Tracking

One smart way to track grant projects is by using GitHub, a popular platform for software development collaboration. GitHub gives us a real-time look into a project's progress, showing who's contributing code, what changes are being made, and how issues are being addressed. By using GitHub to track projects, ecosystems can see what's happening behind the scenes, making it easier to manage resources and keep projects on track.

On-Chain Data: Boosting Accountability and Transparency

To take tracking a step further, ecosystems can use on-chain data. By setting up on-chain Key Performance Indicators (KPIs), they can monitor important project metrics like transaction volumes and user engagement in real time. 

Some L1 / L2 ecosystems (eg. Moonbeam or Arbitrum) include on-chain KPIs as milestones in their grant programs. This ensures that grantees are motivated to not only release the project but also take care of acquiring new users. Exemplary “commercial goals” required by Arbitrum grant program:

Examples of commercial goals by Sector: 

  • DeFi: Users (WAU, DAU, MAU), Trading Volume (Daily, Monthly), TVL, No. of Integrations, No. of Partnerships 
  • Gaming/NFT: Users (WAU, DAU, MAU), Wallet Addresses (Active, Unique), Transactions, Volume, No. of Integrations, No. of Partnerships, No. of NFTs minted, User Retention 
  • Infra/Tooling: Users (WAU, DAU, MAU), Wallet Addresses (Active, Unique), Transactions, No. of Integrations, No. of Partnerships, No. of Dapp Developers

source: https://arbitrumfoundation.notion.site/Milestones-Guidance-85e628abdb0640f1a3c280fb26e19934

On-chain data lets us see the bigger picture, helping ecosystems make informed decisions and improve project outcomes.

Use Case Example: Tokenguard and Astar Ecosystem

As an illustrative example, Tokenguard provides  on-chain and off-chain analytics solutions for ecosystems like Astar. Within the Astar ecosystem, the "dapp staking" protocol feature rewards projects with $ASTR coins based on community support through staked investments. Recently, off-chain data from GitHub revealed discrepancies within one of Astar's heavily supported projects, Arthswap. All thanks to the initiative of one of the Astar Ambassadors - @moonme, who closely monitored the development of projects in the ecosystem.

ArthSwap dApp staking in numbers:

  • Staked Token: 360M $ASTR worth $25M at that time
  • Staking Users: 4000
  • ArthSwap rewards from dApp staking: $50-70k/month

Public Github activity in last 365 days:

  • 3 commits
  • 0 pull requests
  • 0 closed issues

Despite the fact that ArthSwap is #1 Dex in the Astar ecosystem and some part of the development was carried out on private repositories, these numbers, in addition to the lack of transparency with the community and failure to deliver new functionalities on time resulted in a loss of trust and a discussion about delisting ArthSwap from dApp Staking and their re-listing joining from scratch.


Integrating on-chain and off-chain data is key to effective grant project tracking in blockchain ecosystems. By using both types of data, ecosystems can allocate resources better, improve accountability, and support long-term growth. As we move forward, continued innovation in data analytics will be essential for making blockchain ecosystems even more transparent, efficient, and successful.

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