Arbitrum Token Flow Report - August 2024

Treasury

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.

ARB Holdings 3.16B

DAO Assets - Converted into USD

The 15k Ethereum in transaction fees in excess of the L1 fee owed to the sequencer. This was valued at USD 38M as of August 31st, 2024 (price source: CoinGecko). DAO collected At this stage, no proposals have been approved to utilize this balance, although there is a live Tally vote to send 5,134 ETH to the Arbitrum Foundation.

ETH Holdings 15,027

ARB Holdings 1.8b (96.1%) ETH Holdings 37.6m (2.1%) USD Holdings 33.4m (1.8%)

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 investment mainly via the STEP program.

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 - Overview

USD Stablecoin Holdings

ARB Holdings

DAO Treasury

3,160,019,094 224,650,000

Catalyze Gaming Ecosystem Growth

LTIP - Multisig

24,834,122 3,500,000 1,360,252

ADPC Subsidy Fund

Plurality Labs - Thrive Impact Foundation Multisig

Delegate Incentive System

944,525 600,000 518,216 163,324

Arbitrum MSS

Plurality Labs - Grants Safety Multisig

Arbitrum Research & Development Collective (ADPC) - ArbitrumDAO Procurement Committee

2

Questbook Wallets GovHack at ETH CC

3,556

2,881,079

53,028

STEP

30,450,000 33,384,107

TOTAL

3,416,593,091

7

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