Arbitrum, the Ethereum layer-2 blockchain, has announced that its decentralized autonomous organization (DAO) will receive approximately $6.2 million worth of Ether (ETH) as revenue from transaction fees. The funds, consisting of base fees and surplus revenue generated from network transactions, will be distributed among ARB token holders who claim their rewards.
The DAO, which is collectively owned and managed by its members, will collect a total of 3,352 ETH from these fees. Arbitrum is widely used by decentralized applications and blockchain developers as a scaling network. Users pay fees during transactions on Arbitrum One, with the current cost of sending ETH being $0.25 and swapping tokens costing $0.68.
The revenue breakdown reveals that the surplus funds include approximately 582 ETH from the L1 fee, nearly 1,308 ETH from base fees, and an additional 1,462 ETH surplus from the L2 fee. These combined revenues amount to 3,352 ETH for Arbitrum’s DAO.
To ensure a fair distribution, the protocol will create a mechanism triggered periodically by a smart contract for revenue distribution. Only holders of delegated ARB tokens will be eligible to receive the revenue, and they will need to claim their rewards.
Arbitrum intends for this move to align community incentives and give the ARB token a purpose beyond governance. While the majority of community members support the proposal, some have raised concerns that the revenue distribution might raise potential regulatory implications by classifying the ARB token as a security.
This incentive program comes in the wake of a recent clash between Arbitrum’s team and its community regarding an unauthorized transfer of funds amounting to nearly $1 billion, which had not been approved by ARB token holders.
