The Arbitrum Watchdog Committee has recommended permanently banning Good Entry, Limitless, and APX Finance from all future DAO-funded programs. The projects are accused of misusing grants from the Short-Term Incentive Program (STIP) and the Long-Term Incentive Pilot Program (LTIPP), totaling approximately 457,553 ARB.
Specific allegations include Good Entry distributing 142,839 ARB to 1,032 ineligible users and engaging in incentive farming. Limitless allegedly converted 75,000 ARB into USDC and moved the funds to the Base network. APX Finance, formerly ApolloX, is accused of misusing 239,714 ARB through unreturned funds and Sybil activity.
If approved, the bans will apply to the projects, their founders, team members, and affiliates, though they may still use the Arbitrum network. The accused teams have until September 10, 2026, to respond via the governance forum. Failure to provide a satisfactory response will lead to three separate Snapshot votes to formalize the exclusions.
The Watchdog Committee, launched in September 2025, operates as a bounty program where whistleblowers receive ARB rewards for reporting grant misuse. To date, the committee has processed around 90 reports, recovered approximately 532,000 ARB, and paid out roughly 268,000 ARB in rewards.
The committee consists of members from the Arbitrum Foundation, Entropy Advisors, and SeedGov, with a transition to the DAO's operational arm, OpCo, planned for 2026. The program is shifting its focus from legacy grants issued in 2024 and earlier to programs launched from 2025 onwards.