Arbitrum Distributes 3,352 ETH to DAO
Ethereum layer-2 network Arbitrum has announced that it will distribute 3,352 ETH — worth approximately $6.2 million — to its decentralized autonomous organization (DAO). The funds represent surplus revenue and base fees generated from user transactions on the Arbitrum One network.
According to Arbitrum’s May 9 announcement on Twitter, the collected ETH will be available for ARB token holders to claim through the DAO. This marks a significant milestone for Arbitrum, which remains one of the few rollups that redirects all surplus transaction revenue to its community-governed treasury.
Breakdown of Arbitrum’s Network Revenue
Transaction fees on Arbitrum are divided between Layer 1 (L1) and Layer 2 (L2) components. The L1 fee covers the cost of publishing transactions to Ethereum, while the L2 fee supports network operations.
A detailed revenue breakdown shows that 582 ETH came from surplus L1 fees, 1,308 ETH from base fees, and 1,462 ETH from surplus L2 fees. Altogether, these sources generated 3,352 ETH in total revenue, which will now be transferred to the Arbitrum DAO.
At current rates, transaction fees on Arbitrum remain affordable — around $0.25 for sending ETH and $0.68 for token swaps. Data from CryptoFees indicates that Arbitrum users paid roughly $387,000 in total fees over the past week.
New Mechanism for Revenue Distribution
The proposal outlined on Arbitrum’s governance forum introduces a mechanism to automate revenue distribution through smart contracts. These periodic distributions will be triggered by the DAO, allowing ARB token holders who have delegated their voting power to claim rewards directly.
Arbitrum stated that this model aims to strengthen community alignment and give ARB holders tangible utility beyond governance participation. Most DAO members expressed support for the plan, although some raised concerns that linking token rewards to revenue might risk classifying ARB as a security under regulatory scrutiny.
A Step Toward Community Governance
This development follows Arbitrum’s earlier governance challenges, including a controversy over an unapproved transfer of nearly $1 billion in ARB tokens. The latest move represents a renewed focus on transparency and decentralized decision-making, aligning the project’s incentives with its user base.
By redistributing revenue to its DAO, Arbitrum seeks to empower its community and establish ARB as a more functional governance and incentive token — a potential model for future decentralized ecosystems on Ethereum.
