Arbitrum Token Flow Report - April 2025

Arbitrum DAO Token Flow Report

April 2025

Prepared by Regen Financial

DISCLAIMER This report is exclusively prepared for the confidential use of the Arbitrum Decentralized Autonomous Organization ("Arbitrum DAO"). In its preparation, the preparer Regen Financial) has relied upon unaudited information available for all entities related to Arbitrum DAO. The information contained herein has not been audited or formally reviewed, and therefore, Regen Financial does not express an opinion or any form of assurance regarding its accuracy. No party shall be liable for any loss, damage, or expense incurred by relying on this report.

No Assurance

The preparation of this report relies on unaudited financial and non-financial information available for the entity. However, neither this report nor associated parties provide an opinion or any other form of assurance regarding the accuracy of the information presented.

Compilation

Regen Financial has compiled the accompanying report for Arbitrum DAO based on information provided by individual members of the DAO. This compilation has been conducted in accordance with ethical requirements, including principles of integrity, objectivity, professional competence, and due care. Responsibility for the accuracy and completeness of the information used to compile this report rests with the Arbitrum DAO. As a compilation engagement does not entail assurance, Regen Financial is not obliged to verify the accuracy or completeness of the information provided. Consequently, no audit opinion or review conclusion on this information has been provided.

Source of Data

To preserve the integrity of the data presented in this report, on-chain data sources were used where possible. Where data not on-chain was used, the source of such data has been outlined in the report. No verification over data that was not on-chain was performed.

Important Notice

Please be advised that the information presented in this report is intended solely for informational purposes as a Token Flow report and is not to be construed as a financial statement. It should not be relied upon for making financial decisions. Regen Financial does not assume responsibility for the accuracy, completeness, or reliability of the information contained herein. Furthermore, Regen Financial disclaims any liability for any misstatements or loss of funds resulting from actions taken based on the information provided in this report.

Arbitrum DAO - Key Facts and Figures (since inception)

437M ARB Total DAO ARB Expenditure 4.6M USD Total Stablecoin spending

13.5k ETH DAO ETH Holdings 3.1B ARB DAO ARB Holdings

28k ETH Total Sequencer Fees 47k ETH Total Transaction Fees

Arbitrum TVL (DefiLlama)

1.6m

1.4m

3.5b

3.4b

1.4m

3.5b

1.3m

3.3b

1.3m

2.9b

1.2m

2.8b

2.8b 1.1m

2.7b

2.6b

987.2k

2.5b

952.6k

915.6k

2.3b

880.9k

800k

May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

TVL (USD)

TVL (ETH)

Arbitrum Ecosystem Stats (Arbiscan)

60m

150

146

145

54.5m

57.2m

50m 50.8m

140

48m

45m

42.8m

41m

131

39.3m

129

130

37.6m

35.8m

36m

33.2m

122

28.7m

118

120

24m

110

105

101

12m

100

2m 2.1m 1.9m 1.8m 1.6m 1.8m 2.2m 2.1m 1.9m 1.9m 2m 2m

May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

ArbitrumOne Average Daily Tx

ArbitrumOne Unique Addresses

ArbitrumOne Average Verified Contracts

DAO Monthly Token Flows April 2025

681 ETH Total Revenue Total Transaction Fee Inflows

Total Sequencer Fees Collected 57 ETH

0.92

Net Fee Flow

624 ETH Net fee flow is the total collected fee less any fee owed to the sequencer to post transactions onto the Ethereum blockchain. This is the fee that flows into the DAO's treasury.

Users of DAO-governed chains are charged fees to process transactions - these are split between Layer 1 fees to post to the Ethereum network, and Layer 2 fees for processing transactions within Arbitrum.

Sequencer fees relate to direct costs owed to the sequencer to post transactions onto Ethereum's Layer 1 blockchain. These fees are collected from users and passed on to the sequencer via smart contracts.

Net Fee / Total Fee Ratio

Transaction fee figures were obtained from Dune Analytics.

DAO Fee Inflow and Expenditure (ARB)

250.7m

49.5m

24.5m 27.6m

4.8m

4.7m

3.7m

2.7m

2.9m

1.8m 812.3k

2.3m

1.4m

1.1m

1.3m

Apr 24

May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Total Transaction Fees (ARB)

Total DAO Expenditure (ARB)

Transaction fees in ETH were converted to ARB using historical price data obtained from CoinMarketCap. This conversion from ETH to ARB is used to illustrate the overarching "value flow" within the DAO and to establish a standardized nominal currency for comparing inflows and outflows to the DAO Treasury. Note that April saw a net inflow as STIP protocols returned funds. Note the significant increase in October was driven by an AIP sending 250M ARB to the Foundation - this is deemed as having been spent by the DAO and will fall under the Foundation's transparency reporting processes.

DAO Value Flow - Overview (all converted to ARB) - April 2025

Current Month Genesis to Date

Sequencer costs to post on Ethereum Net fee earned by the DAO Fees charged to process transactions

Transaction Fee Inflows

3,741,855

98,626,746

Sequencer Fee

(313,372)

(49,197,897)

Net Fee Flow

3,428,482

49,428,849

Interest generated by STEP

STEP Income

326,564

1,324,646

DAO Expenditure

(1,285,988)

(442,611,503)

Total DAO spending Net inflows / (outflows) for the period

Net Token Flows During the Period

2,469,059

(391,858,008)

Fee Inflows

DAO Fee Inflows - April 2025 (ETH)

Arbitrum DAO-governed chains (Arbitrum One and Nova) programmatically generate ETH inflows through transaction fees paid by users within the Arbitrum ecosystem.

These fees are split into:

Layer 1 Sequencer (Base) Fee Inflow

Transaction fee component paid by a user and distributed to a chain's Sequencer to refund the Sequencer for its batch-posting fees.

Layer 1 Surplus Fee Inflow

Transaction fee component charged as proportion of Layer 1 base fee, in excess of the actual cost required to be paid to the sequencer.

Layer 2 Base Fee Inflow

Transaction fee component that covers the minimum cost of Arbitrum transaction execution.

Layer 2 Surplus Fee Inflow

L1 Base Fee 57 (8.4%) L2 Base Fee 122 (17.9%) L2 Surplus Fee 502 (73.7%)

Transaction fee component that covers the cost beyond that covered by the Layer 2 Base Fee during chain congestion.

Arbitrum DAO Transaction Fee Flows (ETH)

47k

1.2k

46.4k

45.8k

45k

929

835

816

43.5k

681

43k

42.7k

554

610

42.4k

537

503

688

663

41.6k

310

502

41.3k

213

315

383

273

266

131

235

106

162

127

114

110

106

244

122

102

194

118

119

126

118

163

May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

L1 Base Fee

L1 Surplus Fee

L2 Base Fee

L2 Surplus Fee

Cumulative Fee Inflows

Fee Outflows

The L1 Base Fee component of Arbitrum transaction fees are refunded to the sequencer - they accrue in the L1 Base Fee wallet and are claimed by the sequencer periodically. Since the start of the Arbitrum DAO, 28.3k ETH has been charged in L1 Base Fees. The sequencer has periodically claimed that amount and as at the end of April 2025, was owed ~32 ETH which it can claim at any point.

Sequencer Fee Flow (ETH)

+28.3k

(20.2k)

(7.1k)

(194)

(679)

(26)

+32

L1 Base Fee

Sequencer Refunds - 2023

Sequencer Refunds - 1H 2024

Sequencer Refunds - 2H 2024

Sequencer Refunds - 1H 2025 excl. Current Month

Sequencer Refunds - Current Month

Unclaimed Sequencer Fees

Net Fee Flow

Decrease in Net Fees post "Atlas" 45%

Net fee flow is the total collected fee less any fee owed to the sequencer to post transactions onto the Ethereum blockchain. As at the end of April 2025 , the total net flows amounted to 18.7k ETH, streamed periodically to the L2 Treasury Timelock Wallet. Net transaction fees collected in April 2025 amounted to 624 ETH - compared to the 3 months before the "Atlas" upgrade (December 2023 - February 2024), total transaction fees have fallen 85% while net transaction fees have fallen 45% (for the months of April 2024 to April 2025).

To date, the DAO has sent 12.7k ETH from treasury: - 5.1k for the BoLD Validator proposal - 0.03k ETH for Ethereum Attackathon sponsorship - 7.5k ETH for Treasury Management v1.2

Arbitrum DAO Net Transaction Fee Flows (ETH)

18.7k

18.1k

17.6k

16.9k

16.4k

15.7k

15.4k

15.2k

15k

14.2k

13.9k

12.8k

1.1k

806

685

761

509

624

280

339

415

233

188

195

May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

Net Fee Flow

Cumulative Net Fee Flow

Treasury

ARB Treasury Holdings 2.8B

The Arbitrum DAO's treasury holds mainly cryptocurrency, with the majority being its native ARB token. It's important to note that the composition of the treasury holdings is subject to change due to various factors, including fee inflows, outflows, and spending approved by the DAO.

Balance in native ARB token within the DAO's treasury wallet. See below for additional holdings across DAO controlled wallets.

DAO Assets - Converted into USD

Net Transaction Fees

18.7k

BoLD Validator Send ETH Attackathon Send Treasury Management Send

(5.1k) (0.03k) (7.5k)

ETH Treasury Holdings 6k

NET DAO ETH

6.1k

ARB Holdings 1b (94.4%) ETH Holdings 24.2m (2.3%) USD Holdings 34.7m (3.3%)

ETH in Fee Wallets ETH in L2 Treasury Wallet

0.1k 6.0k

The majority of the DAO's treasury is therefore held in its native token, ARB. It also holds ETH from transaction fees, as well as US Dollar-linked investments mainly via the STEP program.

NET DAO Treasury ETH

6.1k

It is worth drawing attention to the fact that the ARB tokens sitting in "treasury" are represented in native ARB token and not a fiat or other cryptocurrency equivalent - much discussion has been had around this point but it is clear that the value of treasury ARB cannot be priced at current ARB market prices. These tokens are effectively out of circulating supply and are similar to a traditional company holding its own stock as treasury shares. If the DAO were to decide to deploy its entire ARB balance, the market would be flooded with liquidity and the price of ARB would be materially impacted. Any proposal moving ARB out of treasury holdings and into the market will have an inflationary impact on the price of ARB (i.e. cet. par . proposals moving ARB out of treasury will cause the price of ARB to fall relative to e.g. the USD).

Treasury Holding - ARB and USD Overview

USD Stablecoin Holdings

ARB Holdings

DAO Treasury

2,763,294,610 155,608,333

Catalyze Gaming Ecosystem Growth

STEP 2.0

34,919,000 30,000,000 26,749,998 21,950,000 17,635,044 8,713,387 8,662,999 7,000,000

Arbitrum Audit Program

Entropy - Treasury Management and Events

OpCo

Domain Allocator Offerings Season 3

DIS - New Multisig

Sylus Sprint Event Horizon Arbitrum MSS

207,884 120,984

ARDC v2

D.A.O. Grant Wallets

3,556

1,323,272 1,215,510 1,044,201 30,957,405 34,663,581 123,193

DAO Season 3 11e7 Wallet

DAOEvents DAO Treasury

STEP (using most recent 31 March report)

TOTAL

3,074,865,795

Note immaterial balances not included.

7.5% of ARB tokens (ARB750M) were transferred to the foundation in the initial token airdrop. A portion of these tokens were spent before AIP1.1 required the Foundation to place its holdings into a vesting wallet with a four-year lock-up period, thus the remaining ARB balance was transferred to that wallet. The Foundation can call funds over time from the vesting wallet. These unlocked funds are then transferred from the vesting wallet to a wallet controlled by the foundation. Arbitrum DAO - The Arbitrum Foundation

Foundation Vesting Wallet ARB Transactions

+750m

(50.5m)

699.5m

(97.7m)

(229.3m)

(14.8m)

357.7m

ARB Airdropped to Foundation

ARB Spent pre AIP1.1

ARB Initially Locked in Vesting Contract

ARB Unlocked and Sent - 2023

ARB Unlocked and Sent - 2024 excl. Current Month

ARB Unlocked and Sent - Current Month

ARB Balance in Vesting Contract

Funds streamed from the vesting wallet to the Foundation's wallet were then partially sent to another wallet, whereafter our analysis ends. We have deemed funds sent to the external wallet as spent and beyond the scope of this report - please refer to the Foundation's transparency report for more context regarding their use of funds.

Foundation Wallet ARB Flows

+341.8m

+500k

(320m)

22.3m

ARB Received from Vesting Wallet

ARB Received from External Wallet

ARB Sent to External Wallet

ARB Remaining in Wallet

Summary of Foundation ARB Flows

ARB

ARB Received - Total

750,000,000

ARB Spent - Pre AIP1.1

50,500,008

ARB Spent - Post AIP1.1

319,500,001

Total ARB Spent

370,000,009

Total ARB Unspent

379,999,991

ARB Unspent in Vesting Wallet

357,706,821

ARB Unspent in Foundation Wallet

22,293,170

Total ARB In Wallets

379,999,991

DAO Spend Analysis

Monthly ARB Expenditure - Last 6 Months

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr25

DAO Expenditure in ARB

253,904 (473,733) (219,829)

(5,468,706) (337,901) (5,806,607)

(578,693) (889,384)

(3,776,936) (617,860) (4,394,796)

(4,087,068) (422,613) (4,509,681)

(899,453) (386,535)

DAO Expenditure in USD - converted to ARB Total DAO Monthly (Expenditure) / Income

(1,468,077)

(1,285,988)

*positive ARB spend relates to LTIP protocols returning funds

Note figures may update in each version of the report

monthly expenditure ARB 2.9M using 6-month average

ARB 5.8M monthly expenditure using highest 1 month

ARB 3.4M monthly expenditure using 3-month average

The Arbitrum DAO's sustainability represents its ability to fund operations based on its current treasury holdings. It evaluates the holdings of the DAO, taking into account the average monthly ARB outflows within the organization. Using these averages, it calculates the number of months of funding that the current asset holdings would be able to sustain. Note that the analysis only looks at ARB held in the DAO's treasury wallet and not across all wallets. It is also worth noting that the ARB held in treasury cannot be valued at the same price as circulating ARB - it is effectively locked supply that when introduced into the market will likely cause material changes in prices. To factor this in, we include an analysis on runway based on the price of ARB falling by different amounts.

Number of months the DAO can maintain expenditure levels before fully depleting the DAO ARB Treasury based on ARB expenditure within the DAO.

6 Month Average Spend (in ARB)

3 Month Average ARB Spend, Increased by 25%

938

651

3 Month Average Spend (in ARB)

3 Month Average ARB Spend, Increased by 50%

813

542

Highest Month Spend (in ARB)

3 Month Average ARB Spend, Increased by 75%

476

465

ARB Introduced into Circulation

Treasury Allocated to Proposals 24% Treasury Spent to Date 12%

Every proposal that allocates the DAO's treasury holdings of ARB is introducing more tokens into supply - ARB out of circulation held in treasury is brought into the market. Over the period from June 2023, when the first Tally proposal was approved, to April 2025, the DAO approved 868M ARB worth of spending outlined in various proposals. This represents 24% of the DAO's initial treasury balance of 3.6B ARB. Spending began in August 2023, with a total of 443M ARB spent to April 2025 (including USD spend converted into ARB). This represents 12% of the DAO's treasury balance - the balance is still held in DAO-controlled wallets.

Arbitrum DAO Expenditure

The Arbitrum DAO has committed (and plans to continue to commit) a material portion of its treasury towards funding growth within the Arbitrum ecosystem. This report divided spending across 6 major categories:

Long term programs, committees or groups funded by and supporting the effective functioning of the Arbitrum DAO. Provide services to and are approved and funded directly by the DAO (not via a Grants Program). Funds in multisig wallets are treated as DAO funds until they are distributed to third parties.

DAO Core

Ecosystem Incentives

Funds for users in the Arbitrum ecosystem distributed to them via protocols built on Arbitrum. Used to directly incentivise network and user growth on Arbitrum. Funds in multisig wallets are treated as DAO funds until they are sent to protocols for subsequent distribution to users.

Funds earmarked for major initiatives and ventures within the DAO ecosystem, aimed at addressing a certain identified area for development within the DAO. Generally facilitated via working groups and/or DAO-elected councils. Funds in multisig wallets are treated as DAO funds until distributed to third parties.

Ventures

Treasury Diversification

Funds moved out of the DAO's treasury holdings and deployed into investments aiming to generate returns for the DAO that aren't in its native ARB token. Funds sent out of the multisig to service treasury diversification providers are treated as DAO funds. Funds spent on operational costs are considered spent.

Grants Programs

Grants Program fund many different contributors, initiatives and builders within Arbitrum DAO. Each Grant Program will fund many grant initiatives. Funds in multisig wallets are treated as DAO funds until they are sent to grant program managers or grantee.

One off funding/grants for external service providers or protocols to deliver specific work within a stated remit. Proposal must have been approved directly through on-chain governance. Funds in multisig wallets are treated as spent funds when sent to the service provider or protocol.

Direct Grants

Allocated Treasury - March 2023 to Current Month (ARB)

Actual Spend - March 2023 to Current Month (ARB)

DAO Core 60m (6.9%) Ecosystem Incentives 154.9m (17.9%) Ventures 478.7m (55.2%) Treasury Diversification 96.4m (11.1%) Grant Programs 33.7m (3.9%) Direct Grants 43.9m (5.1%)

DAO Core 13.2m (3.0%) Ecosystem Incentives 115.5m (26.1%) Ventures 263.1m (59.4%) Treasury Diversification 35.3m (8.0%) Grant Programs 10.5m (2.4%) Direct Grants 5m (1.1%)

Note differences between allocated and actual spend relates to either proposals not spending its allocated funding, or to proposals that are still live and in the process of deploying their funding. 10

Arbitrum DAO - DAO Core

This represents the long-term programs, committees or groups funded by and supporting the effective functioning of the Arbitrum DAO - these are funded directly by the DAO and not via a Grants Program. The pledged outflows amount indicates the amount allocated to each group via an on-chain governance vote, while actual outflows are funds which are then distributed from the wallet at which point they are "spent".

DAO Core Budget (ARB)

+30m

60m

+4m

+6m

+325k

+600k

+12.1m

+1.2m

+5.7m

Arbitrum Research & Development Collective (incl. v2)

ArbitrumDAO Procurement Committee (incl. Phase II)

Delegates Incentive System (incl. v2)

Multisig Support Service

Entropy Advisors

Event Horizon

DAO Events Budget

OpCo

Total

DAO Core Spend - March 2023 to Current Month (ARB)

+531.8k

13.2m

+200k

+6m

+392.1k

+2.9m

+941.9k

+2.2m

Arbitrum Research & Development Collective

ArbitrumDAO Procurement Committee (incl. Phase II)

Delegates Incentive System

Multisig Support Service

Entropy Advisors

Event Horizon

DAO Events Budget

OpCo

Total

Arbitrum Research & Development Collective v2

During April 2025, the ARDC deployed $22.9k to the 2 Research members. 2 of the supervisory council members also returned a portion of their fees (30k ARB was returned) as the members stepped down from their roles given other commitments. Total spend is therefore $207k, with $1.5M still owing and on-hand in the multisig. The multisig also holds ARB121k and owes no further providers or council members - this is therefore expected to be excess funds from the initial budget.

ARB Remaining in Multisig Wallet ARB121k USDC Remaining in Multisig USDC1.5M

ARDC v2 Budget vs Spend (USD)

660k

ARB USDC

594k

AIP Funding Received

3,982,602

Funds Swapped into Stables Funding Sent - Immutable Lawyer Funding Sent - Supervisory Council Funding Sent - Service Providers

410k

(3,767,602) 1,745,534

358k

330k

285.3k

285.9k

(35,000)

(59,016)

66k

52k

44.7k

44.2k

(206,850)

Funds Remaining in Multisig

Security - OpenZeppelin

Research - Llama Research

Research - Castle Capital

Risk - Nethermind

120,984 1,538,684

USD Budget 1.7m

USD Sent to Date 206.9k

USD Remaining to be Sent 1.5m

Arbitrum DAO - DAO Core contd.

ArbitrumDAO Procurement Committee - Phase II

120k

54k

33.9k

20.1k

Member 1 - Axis Advisory

Member 2 - Areta

Member 3 - Daimon Legal

Operational Budget

USD Budget 414k

USD Spend to Date 380.1k

USD Remaining to be Sent 33.9k

During April 2025, the ADPC wound up its term and therefore: - returned $33.9k to the DAO treasury wallet - sent the remaining $2k to the LlamaPay Stream for committee members

The multisig therefore has no balance in it, and the Aera vault holds no USDC and immaterial (51) ARB.

Delegates Incentive Program (DIP)

The DIP passed on Tally in October 2024 - it aimed to build on the momentum gained from the initial period and outlined a budget for a 12-month period. The combined budget across both delegate incentive programs is outlined below.

Delegate Incentive Programs - Combined ARB Budget

+2.4m

12.1m

+369.1k

+30k

+188.2k

+9.1m

Delegate Incentives

Karma Development

Admin Costs - SEED Latam

Multisig Signers (first AIP)

Price Buffer

Total Budget

For ease of tracking total incentives and operational costs associated with Delegate Incentives, we have combined both DIP AIP's in our analysis.

DIS Spend - March 2023 to Current Month (ARB)

9.1m

6.5m

2.6m

369.1k

189.9k

179.1k

188.2k

111.5k

76.7k

30k

Delegate Incentives

Admin Costs - SEED Latam

Karma Development

Multisig Signers

ARB Budget 9.7m

ARB Sent to Date 2.9m

ARB to be Sent 6.8m

Arbitrum DAO - DAO Core contd.

Total Delegates Incentivised 68

Average Total ARB Incentive per Delegate ARB38.3k

ARB Remaining in DIS Multisig Wallet ARB8.7M

Average total monthly ARB incentives ARB200k

ARB Delegate Incentives - March 2023 to Current Month (ARB)

1.7m

101.9k

84.3k

82.2k

80.5k

78.6k

78.2k

76.7k

71k

67.8k

66.6k

63.2k

63k

Multisig Support Service (MSS)

The MSS multisig spent 83k ARB in the current month across signers and chairs plus Regen Financial's Token Flow Report. It is worth noting that, using the 30 April price of ARB, the multisig holds the equivalent of USD68k vs. expected future commitments of USD125k. There is therefore a shortfall of USD57k at a price of $0.326 / ARB. The breakeven ARB price is ~$0.60.

Balance in Wallet ARB208k (USD68k) Surplus / (Shortfall) to pay Roles (USD57k)

162k

94.5k

90k

79.8k

67.5k

59.9k

52.5k

37.5k

20k

MSS Chairs

MSS Signers

Regen Token Flow Report

USD Budget 331.8k

USD Spend to Date 206.9k

USD Remaining to be Sent 125k

Arbitrum DAO - DAO Core contd.

OpCo: A DAO-adjacent Entity for Strategy Execution

During February 2025, the OpCo proposal was passed on Tally, outlining a plan to establish a legal entity that delegates and key stakeholders can leverage to achieve DAO-defined goals, principally by forming an operational mesh layer and assigning internal employees or negotiating and entering into agreements with service providers and individual contributors to facilitate initiatives. OpCo’s mission is to negate identified frictions affecting the DAO’s strategy execution, such as allowing for the establishment of more operational roles for the DAO, facilitating efficient and competitive contributor and service provider negotiations and information flow between these parties, creating clear responsibilities for carrying out initiatives, and helping ensure the continuation of programs the DAO depends upon. OpCo is also required to be proactive, meaning that if the entity has the bandwidth and recognizes a potential advancement that could be made within its mandated focus areas, it can work on and propose a strategy through which the entity would address the identified frictions. The initial period of the OpCo is 30 months before possible renewal, with 6 months to establish all operations and then a 24-month initial operational period. The total ARB requested was 30M. OpCo Operational Budget

Full Budget

Per Annum Per Month

Internal Employee Salaries Chief Chaos Coordinator

5,328,000 720,000 384,000 4,224,000 4,945,000 2,400,000 2,545,000 1,125,000

2,664,000 360,000 192,000 2,112,000 2,472,500 1,200,000 1,272,500 450,000

222,000 30,000 16,000 176,000 206,042 100,000 106,042 37,500

Chief of Coins

Other 10 Employees Setup and Admin Costs

Legal Services

Other Setup and Admin Costs *

Oversight and Transparency Committee (5 members) *

TOTAL COST (USD)

11,398,000

5,586,500

465,542

Internal Employee Bonus (in ARB)

3,000,000 1,000,000

1,500,000 500,000

125,000 41,667

Oversight and Transparency Committee Bonus (in ARB)

TOTAL COST (ARB)

4,000,000

2,000,000

166,667

During April 2025, the OpCo started the process of diversifying some ARB into USDC to fund expenses. It converted 8.05M ARB into 2.6M USDC, achieving a rate of $0.32 / ARB.

No funding had been spent to the end of April 2025.

DAO Events Budget

During April 2025, the DAO events budget deployed an additional $19k, taking total spend to date to $484k, with $14k having been returned to the DAO treasury wallet in Feb 2025.

Arbitrum DAO - Ventures Ventures Budgets (ARB)

+250m

478.7m

+225m

+3.5m

+191.7k

+52k

M&A for Arbitrum ADPC Subsidy Fund Arbitrum Ventures Initiative

Gaming Catalyst Program

Arbitrum Foundation's Strategic Partnerships Budget

Total

Gaming Catalyst Program

During April 2025, no send events occurred out of the GCP multisig.

The GCP posted an announcement outlining the first investment cohort - Wildcard, a 2v2 collectible card action game; - Hyve Labs, a frictionless game distribution layer; - T-Rex, a consumer-first blockchain with a strong footprint in Southeast Asia; - Xai, the first Layer 3 for on-chain gaming, built on Arbitrum Orbit; and - Proof of Play, a technology-focused game studio

The GCP has also rebranded to the Arbitrum Gaming Ventures.

+225m

(60m)

(9.4m)

155.6m

Funding Received

Funding Sent to Foundation-controlled Wallets

Funding Sent to Other Wallets

Funds Remaining in Multisig

Arbitrum DAO - Treasury Management

Arbitrum Stable Treasury Endowment Program (STEP)

The STEP report, covering 1 - 30 April 2025, was published on the forum and is summarized below (this is the most recent report).

9.7m

5.3m

9.5m

5.2m

Market Value April 2025 $31M Interest Earned (LTD) $673k Yield LTD (Cash on Cash) 2.2%

3.5m

1.7k

USD Cost 30.3m USD Market Value 31m

Interest Earned (LTD)

Yield LTD Cash on Cash

USDCost

Securitize BUIDL

9,523,937 5,194,875 5,194,875 3,463,250 3,468,250 3,463,250

208,826 121,817 129,146 85,680 53,002 74,284

2.19% 2.34% 2.49% 2.47% 1.53% 2.14%

OndoUSDY

Superstate USTB Mountain USDM OpenEden TBill

Backed Finance blB01

USDC (Circle)

1,734

Total

30,310,171

672,755

2.22%

800k

31m

30.9m

31m

30.8m

30.7m

30.5m

672.8k

30.5m

572.3k

600k

30m

29.5m

459.4k

29m

400k

356.9k

28.5m

251.5k

28m

200k

26.9m 99.8k 140.2k

27.5m

113k

111.3k

105.4k

102.5k

100.4k

40.4k

27m

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

Market Value (USD)

Monthly Interest Generated (USD)

Cumulative Interest Generated (USD)

Arbitrum DAO - Treasury contd.

Stable Treasury Endowment Program 2.0

Allocations for the STEP 2.0 program were approved on Snapshot during May 2025. The allocations are: - WisdomTree WTGXX: 30%; - Spiko USTBL: 35%; and - Franklin Templeton FOBXX (BENJI): 35%

Given the volatility of ARB prices, the amount allocated to the above protocols had not been converted into USD and deployed as at the end of April. A send event of 206k ARB to a Kraken wallet did occur in April 2025.

Treasury Management V1.2

During March 2025, Snapshot votes closed to decide on the next steps in the Treasury Management proposal.

TMC Stablecoin Recommendation

The DAO voted YES to allocate 15M ARB (to be converted into stablecoins by the Foundation) to: - Karpatkey - Avantgarde & Myso - Gauntlet

Funding will be split equally between the above parties.

TMC ARB Recommendation

The DAO voted NO to allocating 10M ARB to: - Karpatkey - Avantgarde & Myso for ARB-only strategies.

GMC's Preferred Allocations (7,500 ETH)

The DAO voted YES to allocating 7.5k ETh as outlined below: - 5k ETH to Lido for liquid staking - 4.2k ETH to Aave to encourage LRT borrowing against wstETH in collaboration with Lido, Aave, Renzo, and Kelp - 2.5k ETH to Fluid to lend on their Arbitrum platform - 0.8k ETH to Camelot as single sided liquidity into the wstETH/ETH liquidity pool on Camelot V3

Note the 4.2k ETH for Aave and the 0.8k ETH for Camelot are stETH (as wstETH) from the 5k ETH allocated to Lido (i.e. the stETH from Lido will be deployed on Aave and Camelot). The multisig still holds the full treasury management allocation (26M ARB), and holds 2.5k ETH for the growth management allocation (5k ETH was deployed from the multisig during April 2025).

Arbitrum DAO - Grants Programs

The Arbitrum DAO has implemented various grants programs to foster growth and facilitate development within the Arbitrum ecosystem. Grants are either awarded directly from the DAO's treasury wallet to grantees, or are awarded to grant manager(s) - the grant manager(s) approved by the ArbitrumDAO have sole discretion on how to allocate the grant program’s ARB treasury based on their own criteria. The Arbitrum Foundation focuses on the legal backend for supporting the grant programs while the DAO representatives are free to execute on their proposal and allocate funds according to criteria agreed with the community. The Arbitrum DAO has implemented 2 grant programs, as well as issued several direct grants (i.e. funding allocated directly to a grantee without being facilitated by a grant manager via a program). For the purposes of the below analysis, funding requests by a single party funded directly out of the DAO's treasury wallet are included under direct grants. The Arbitrum Foundation also has its own grant program, solely under its control - figures for their program have therefore not been included in the analysis below.

Grant Criteria

Arbitrum DAO Grant Programs

Grant programs overseen and facilitated by third parties, with grantees receiving funding via these third parties and not directly from the DAO. Examples include Plurality Labs and Questbook.

Funding sent directly from the DAO's treasury wallet to the ultimate recipient. This could either be as a proposed grant or any other proposal where the end beneficiary is funded directly and not via a third-party grant manager/facilitator.

Arbitrum DAO Direct Grants

The Arbitrum Foundation Grant Program

Supports builders with milestones-based funding for growth. All grants issued through this program will serve to improve the adoption of Arbitrum chains, create stronger technical structures, and build sustainable communities in the Arbitrum ecosystem.

ARB Allocated

+13.9m

47.6m

+23.4m

33.7m

+3.3m

+2.8m

+3.4m

+800k

Questbook Grant Program

Plurality Labs Grant Program Milestone 1

Plurality Labs/Thank ARB Grant Program Milestone 1B

Questbook Grant Program Extension

DAO Season 3 Grants

Total Grant Programs

Direct Grants

Total Grant Programs and Direct Grants

Arbitrum DAO Grant Programs

The Questbook Arbitrum Grants program focuses on anyone developing domain-specific projects on top of Arbitrum, ranging from education, gaming, and dev tooling to innovative ideas. Through the program, grantees receive milestone-based funding based on domain-specific needs outlined by the domain allocators elected by the community.

Questbook - Flow of Grant Funding

ARB

USDC/T

Grant 1 Budget

800,000 (800,000) 120,000 380,578 (424,398)

ARB Sent to Program Wallets

ARB Returned from Program Wallets

ARB Received from Program Wallets to Swap to Stablecoins

ARB Swapped into USDC for Programs Stablecoins sent to Program Wallets Stablecoins Returned from Program Wallets

728,143 (675,000)

61,000

Grant 2 Budget

3,300,000 (3,300,000)

Grant 2 Budget Swapped to Stablecoins Stablecoins sent to Program Wallets Funding Available for Operational Costs ARB Swapped for Operational Spend Funding Spent on Operational Costs Funding Returned from Sub Wallets

3,393,024 (3,081,000)

76,180

426,167

(2,797) (73,383)

4,003

(386,680) 189,412 232,902

3,556 3,556

Remaining Funding

During April 2025, no funding was deployed from the multisig. However, wallets used for the first round of grants returned all funding to the multisig. The total funds returned were: - 3.6k ARB - 189k USDC

These funds had sat idle for over 3 months and have now been returned to the multisig.

Domain Allocator Offerings - Third Round During April 2025, each of the 5 domain multisigs received an initial funding inflow, totalling 563k USDC.

2 domains started deploying funding during April, with a total of 29k USDC spent. Therefore, a larger update will be provided in the May report given the limited spending that had occured to the end of April.

Operational spend also began, with funding deployed across domain allocators, the program manager and platform expenditure.

Operational Spend to Date

528k

488k

96.6k

90.1k

60k

55k

40k

30k

6.5k

Domain Allocators

Program Manager

Questbook Platform

Legal Expenses

USD Budget 714.6k

USD Spent to Date 51.5k

USD Remaining to be Sent 663.1k

Grant Spend - Second Round

Questbook Grant Program Stablecoin Funding - 2nd Round

770.3k

668.3k

620.4k

619.5k

Remaining USDC Funding 557k

615.9k

149.9k

154.4k

150.7k

101.9k

Gaming

Developer Tooling on NOVA

New Protocol Ideas

Education, Community growth and events

Stablecoin Funding Received 3.1m

Stablecoin Grants Spent 2.5m

Stablecoins Remaining in Wallets 556.9k

During April 2025, 82k of USDC funding was deployed across the 4 grant program categories, taking total grant spending to date to 2.5M USDC across grantees. Each sub-category has USDC remaining in their wallets totalling 557k USDC.

Questbook - Round 2 Grants

USDC Grants

Gaming

620,379 40,000 40,000 37,500 502,879 615,900 48,000 46,000 40,000 481,900 619,510 43,000 36,000 35,000 505,510 676,558 40,000 35,720 34,788 566,050

GamingGrid

Upptic Growth Agency UGC Campaign Bot

Other Grantees

Developer Tooling on NOVA

Search Multichain Worlds on Arbitrum with Dora Open Source Code Contribution Dashboard (DevRel)

Lava Public RPC Other Grantees

New Protocol Ideas

Arbitrum Proposals App

ArbitrumDAO Governance Analytics Dashboard - Curialab

Locale Network Other Grantees

Education, Community growth and events

Merge Madrid

Online+IRL Hackathon Support Arbitrum LATAM

Other Grantees

Arbitrum DAO Direct Grants

ARB Allocated

+30m

43.9m

+4m

+251.9k

+5.3m

+4.3m

Previous Grants

Fund the Stylus Sprint

Arbitrum Hackathon Builder Continuation Program

Increase Stylus Sprint Budget

Arbitrum Audit Program

Total Direct Grants

Fund the Stylus Sprint

During April 2025, the 4 committee members received 5k ARB each, taking their total compensation to 100k ARB.

Funding was also deployed to a few different protocols, with total funding spent in April of 477k ARB. Total spend under the program is therefore 667k ARB. The multisig holds 8.7M ARB.

Arbitrum Audit Program

During April 2025, a Tally proposal passed outlining 30M ARB to to run an on-going open application for 1 year to support projects that require a subsidy to audit their project, as requested by the Arbitrum Foundation.

A list of auditors will be approved into the program, and auditing firms are also invited from the ADPC’s Security Subsidy Fund to apply for the program.

The Arbitrum Audit Committee will include membership from the Arbitrum Foundation, Offchain Labs, a technical expert elected by the DAO, and a team member from the OpCo (when operational).

Applications for the DAO-elected expert are open until 16 May.

Arbitrum DAO Token Flow Report April 2025

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