Arbitrum DAO’s New Proposal To Distribute 3,350 ETH In Fee Revenue

Key Points:

• Arbitrum is discussing giving 3,350 ETH to its DAO.
• Once the protocol team fought with the community, Arbitrum established an incentive scheme.

The Arbitrum community has dispersed a percentage of the DAO’s earnings to ARB token holders in accordance with the number of tokens each bearer has delegated.

Arbitrum will give 3,352 ETH to its DAO, totaling more than $6 million, as part of the fees produced incentives.

The protocol further indicated that it would develop an income-sharing mechanism via the periodic activation of a smart contract. This will guarantee that the prizes are given on schedule. The project is anticipated to generate a more engaged and devoted user base, as well as distinguish Arbitrum from other institutions by its dedication to building a more profitable network for everybody.

The idea is still in the early stages of the debate, and the majority of the comments received so far indicate support for it.

Each Arbitrum One charge is broken into two parts: the L1 fee and the L2 fee. The DAO will get excess cash from the L1, base, and L2 fees, according to a revenue breakdown. The proposal would provide a revenue distribution system with delegated ARB tokens available for distribution.

According to Arbitrum, the move will offer ARB a purpose other than being a useless governance token, harmonizing community incentives. Several members, however, were concerned that the income distribution might define the ARB token as a security.

The daily active users on the popular layer-2 rollup ARB fell from a two-week peak in the recent 24 hours, prompting concerns about the spike’s long-term viability. Since its high in March, daily transactions have decreased by more than half.

Arbitrum has declared that it will contribute any excess transaction fee earnings to DAO. The ARB token, on the other hand, is presently a pure governance token with no defined function, such as fee accrual or a burning mechanism.

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