Arbitrum Token Flow Report - June 2025

Arbitrum DAO Token Flow Report

June 2025

Prepared by Regen Financial

1

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.

2

Arbitrum DAO - Key Facts and Figures (since inception)

439M ARB Total DAO ARB Expenditure 5.4M USD Total Stablecoin spending

8.7k ETH DAO ETH Holdings 2.9B ARB DAO ARB Holdings

28k ETH Total Sequencer Fees 48k ETH Total Transaction Fees

Arbitrum TVL (DefiLlama)

1.5m

4b

1.4m

3.5b

3.5b

1.3m

1.4m

3.5b

3.3b

3.3b

1.2m

2.9b

1.2m

3b

2.8b

2.8b

2.7b

2.6b

1.1m

2.5b

1m

2.4b

1m

1.1m

2.5b

1m

1m

987.2k

2.3b

973.7k

952.6k

900k

2b

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

May 25

Jun 25

TVL (USD)

TVL (ETH)

Arbitrum Ecosystem Stats (Arbiscan)

75m

150

145

140

61.5m

59.4m

60m

57.2m

133

131

54.5m

131

127

130

50m 50.8m

122

45m

42.8m

45m

41m

118

120

39.3m

37.6m

35.8m

110

30m

105

101

100

92

92

15m

90

2m 2.1m 2.1m

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

0

80

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

May 25

Jun 25

ArbitrumOne Average Daily Tx

ArbitrumOne Unique Addresses

ArbitrumOne Average Verified Contracts

3

DAO Monthly Token Flows June 2025

315 ETH Total Revenue Total Transaction Fee Inflows

Total Sequencer Fees Collected 15 ETH

0.95

Net Fee Flow

300 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)

4.7m

4.5m

3.7m

2.9m

2.7m

2.5m

2.4m

1.6m

1.5m

1.3m

1.3m

Jan 25

Feb 25

Mar 25

Apr 25

May 25

Jun 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.

Total transaction fees above exclude NOVA fees and STEP income, which are included below.

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

Current Month Genesis to Date

Transaction Fee Inflows

2,405,172 (110,670) 2,294,502

103,537,822 (49,438,585) 54,099,237 1,830,881 11,655,727 (445,564,214) (377,978,369)

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

Sequencer Fee Net Fee Flow STEP Income Nova Revenue DAO Expenditure

243,690

Interest generated by STEP Fees From Arbitrum Nova

490

(1,647,723)

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

Net Token Flows During the Period

890,960

4

Fee Inflows

DAO Fee Inflows - June 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 14 (4.6%) L2 Base Fee 117 (37.2%) L2 Surplus Fee 183 (58.1%)

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)

47.8k

47.4k

929

47k

835

816

46.4k

45.8k

681

554

610

537

44.4k

503

688

663

310

407

502

213

315

315

383

273

131

252

235

42.4k

106

162

89

127

183

86

106

244

122

98

102

194

118

126

118

135

163

117

78

56

57

47

21

14

35

29

28

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

May 25

Jun 25

L1 Base Fee

L1 Surplus Fee

L2 Base Fee

L2 Surplus Fee

Cumulative Fee Inflows

5

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 June 2025, was owed ~0.1 ETH which it can claim at any point.

Sequencer Fee Flow (ETH)

+28.3k

(20.2k)

(7.1k)

(194)

(757)

(16)

+0

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" 48%

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 June 2025 , the total net flows amounted to 19.4k ETH, streamed periodically to the L2 Treasury Timelock Wallet. Net transaction fees collected in June 2025 amounted to 300 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 48% (for the months of April 2024 to June 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)

19.4k

19.1k

18.7k

18.1k

17.6k

16.9k

16.4k

15.7k

15.4k

15.2k

15k

14.2k

806

685

761

624

415

509

386

280

188

195

339

300

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

May 25

Jun 25

Net Fee Flow

Cumulative Net Fee Flow

6

Treasury

ARB Treasury Holdings 2.7B

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

19.4k

ETH Treasury Holdings 8.7k

BoLD Validator Send ETH Attackathon Send Treasury Management Send Nova ETH Income

(5.1k) (0.03k) (7.5k) 1.9k

NET DAO ETH

8.7k

ARB Holdings 1.1b (94.1%) ETH Holdings 21.7m (1.9%) USD Holdings 46.6m (4.1%)

ETH in Fee Wallets ETH in L2 Treasury Wallet

0.07k 8.65k

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 ETH

8.7k

Note that as part of the Growth strategy within the Treasury Management Proposal, 7.5k ETH was allocated across various protocols to generate yield on previously unproductive ETH. The split of this ETH was included in previous reports. Those holdings have not been included in the above analysis, as it falls under the Treasury Management proposal and should be reported separately. The DAO wallet that initially received the 7.5k ETH allocation currently holds 0 ETH and 4.1k wstETH. It sent 2.4k ETH to a wallet (ending B51F) that currently holds 2.5k fWETH, aligning with what Entropy reports in its Dune dashboard.

Treasury Holding - ARB and USD Overview

USD Stablecoin Holdings

ARB Holdings

DAO Treasury

2,690,807,647

123,193

Catalyze Gaming Ecosystem Growth

86,183,335 30,000,001 21,949,999 17,918,999 11,753,552 11,310,041 8,028,855 7,888,331

Arbitrum Audit Program

OpCo

57,326

STEP 2.0

8,373,046

Entropy - Treasury Management and Events Domain Allocator Offerings Season 3

362,916

DIS - New Multisig

Sylus Sprint

ARDC v2

112,246 100,000

1,503,604

Event Horizon

D.A.O. Grant Wallets

3,527,932

D.A.O. Season 3 OPEX Wallet

515,747

DAOEvents

1,044,201 31,054,117 46,562,082

STEP (using most recent 31 May report)

TOTAL

2,886,053,006

Note immaterial balances not included.

7

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)

(201m)

(71.8m)

(14.8m)

314.1m

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

ARB Unlocked and Sent - 2025 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

+385.4m

+500k

(350m)

35.9m

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

349,500,001

Total ARB Spent

400,000,009

Total ARB Unspent

349,999,991

ARB Unspent in Vesting Wallet

314,148,424

ARB Unspent in Foundation Wallet

35,851,567

Total ARB In Wallets

349,999,991

8

DAO Spend Analysis

Monthly ARB Expenditure - Last 6 Months

Jan 25

Feb 25

Mar 25

Apr25

May 25

Jun25

DAO Expenditure in ARB

(578,693) (3,776,936) (4,087,068)

(899,453)

(699,230)

(961,932)

DAO Expenditure in USD - converted to ARB

(889,384)

(617,860)

(422,613)

(386,535)

(605,758)

(685,791)

Total DAO Monthly (Expenditure) / Income

(1,468,077) (4,394,796) (4,509,681) (1,285,988) (1,304,988) (1,647,723)

Note figures may update in each version of the report

monthly expenditure ARB 2.4M using 6-month average

ARB 4.5M monthly expenditure using highest 1 month in most recent 6 months

ARB 1.4M 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%

1.1k

1.5k

3 Month Average Spend (in ARB)

3 Month Average ARB Spend, Increased by 50%

1.9k

1.3k

Highest Month Spend (in ARB)

3 Month Average ARB Spend, Increased by 75%

597

1.1k

ARB Introduced into Circulation

Treasury Allocated to Proposals 26% 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 June 2025, the DAO approved 948M ARB worth of spending outlined in various proposals. This represents 26% of the DAO's initial treasury balance of 3.6B ARB. Spending began in August 2023, with a total of 446M ARB spent to June 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.

9

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 60.4m (6.4%) Ecosystem Incentives 234.9m (24.8%) Ventures 478.7m (50.5%) Treasury Diversification 96.4m (10.2%) Grant Programs 33.7m (3.6%) Direct Grants 43.9m (4.6%)

DAO Core 14.2m (3.2%) Ecosystem Incentives 115.5m (25.9%) Ventures 263.1m (59.1%) Treasury Diversification 35.3m (7.9%) Grant Programs 11.7m (2.6%) Direct Grants 5.8m (1.3%)

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

+400k

60.4m

+4m

+6m

+325k

+600k

+12.1m

+1.2m

+5.7m

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

+531.8k

+0

+0

14.2m

+200k

+6m

+581.8k

+3.6m

+941.9k

+2.3m

Arbitrum Research & Development Collective v2

During June 2025, the ARDC did not deploy any funding. The only transactions that occurred were transfers of all held funds to a new wallet, reflecting the move from a wallet controlled by the Arbitrum MSS to one controlled by the Foundation. Total collective member spend is therefore $242k, with $1.49M still owing and on-hand in the (new) multisig. The multisig also holds ARB112k and owes no further providers or council members - this is therefore expected to be excess funds from the initial budget.

USDC Remaining in Multisig USDC1.5M ARB Remaining in Multisig Wallet ARB112k

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

354.1k

330k

330k

271.9k

268.1k

(35,000)

(67,754)

66k

61.9k

58.1k

55.9k

(241,930)

Funds Remaining in Multisig

Security - OpenZeppelin

Research - Llama Research

Research - Castle Capital

Risk - Nethermind

112,246 1,503,604

USD Budget 1.7m

USD Sent to Date 241.9k

USD Remaining to be Sent 1.5m

11

Arbitrum DAO - DAO Core contd.

Delegates Incentive Program (DIP)

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

6m

3.2m

369.1k

281k

188.2k

152.8k

88.1k

35.4k

30k

30k

Delegate Incentives

Admin Costs - SEED Latam

Karma Development

Multisig Signers

ARB Budget 9.7m

ARB Sent to Date 3.6m

ARB to be Sent 6.1m

Total Delegates Incentivised 70

Average Total ARB Incentive per Delegate ARB45.1k

ARB Remaining in DIS Multisig Wallet ARB8M

Average total monthly ARB incentives ARB210k

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

2m

134.9k

112.8k

98.2k

98.1k

94.4k

94.4k

92.4k

90.9k

87k

83.8k

82.3k

80.5k

12

Arbitrum DAO - DAO Core contd.

Multisig Support Service (MSS)

During June 2025, the MSS paid out 113k ARB to cover 1.5 months of all members' monthly compensation, as well as 2 months of Regen's service fees. This was in-line with the Snapshot proposal to wind down the MSS and hand over the duties to the Foundation.

All funds held within wallets controlled by the MSS were transferred to new wallets overseen by the Foundation during June.

Th excess funding of 18k ARB was returned to the DAO treasury, therefore concluding the MSS.

162k

118.5k

90k

79.8k

79.8k

65k

43.5k

25k

MSS Chairs

MSS Signers

Regen Token Flow Report

USD Budget 331.8k

USD Spend to Date 263.3k

USD Not Spent 68.5k

OpCo: A DAO-adjacent Entity for Strategy Execution

OpCo Operational Budget

Full Budget

Per Annum Per Month

Internal Employee Salaries Chief Chaos Coordinator

5,328,000

2,664,000

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

720,000 384,000

360,000 192,000

Chief of Coins

Other 10 Employees Setup and Admin Costs

4,224,000 4,945,000 2,400,000 2,545,000 1,125,000

2,112,000 2,472,500 1,200,000 1,272,500

Legal Services

Other Setup and Admin Costs *

Oversight and Transparency Committee (5 members) *

450,000

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

125,000 41,667

Oversight and Transparency Committee Bonus (in ARB)

500,000

TOTAL COST (ARB)

4,000,000

2,000,000

166,667

In June 2025, the OpCo announced that the fifth and final member of the OAT was appointed, with Gavin Wang filling the role. The OAT is actively searching for its first hire, being the Chief Chaos Coordinator (Head of OpCo Foundation). The only transactions that occurred during the month were small test transactions and the movement of $2.5M from USDC into the OpCo's new operational bank account.

13

Arbitrum DAO - Ecosystem Incentives

This relates to funds allocated towards incentives in the Arbitrum ecosystem. Initial incentives focused on user acquisition and was distributed to them via protocols, whereas more recent incentive programs target specific assets and activities across Arbitrum.

Ecosystem Incentives Budgets (ARB)

+80m

234.9m

+45.7m

+37.6m

+21.5m

+50.1m

Short Term Incentives Program

Short Term Incentives Program Backfund

Short Term Incentives Program Bridge

Long Term Incentives Program

DeFi Renaissance Incentive Program

Total

DeFi Renaissance Incentive Program (DRIP)

During June 2025, the DAO passed a Tally vote to approve the DRIP.

The incentive program focuses on targeting specific assets and activities across Arbitrum rather than specific protocols. Incentives per specific assets/activities will run in 3-month seasons through the DRIP so that the program can be adapted and different assets and activities can be selected as learnings are taken into account. Each season will have a singular, specified goal. The proposal allocated 80M ARB to cover 4 'seasons' (3-month cycles). Each incentive “season” is governed by a set of rules specifying which on-chain actions or participants qualify for ARB rewards. An independent distribution partner is responsible for: - Receiving ARB for the Season - Identifying Eligible Wallets: The partner reviews network data to find wallets that meet the season’s eligibility criteria. - Distributing ARB Rewards: Once the partner confirms which wallets qualify, it distributes the ARB to each eligible wallet based on the season’s defined, and potentially changing, parameters. No distribution is sent directly to protocols; all ARB flows to qualifying wallets. - Frontend Creation: Shows all eligible protocols, effective APRs, and data from the evaluation partner.

The season selection committee will be run by Entropy, Offchain Labs and the Arbitrum Foundation.

14

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 June 2025, the GCP multisig transferred 69M ARB to a Foundation-controlled multisig, before some of those funds were moved out of that wallet. The flow of funding once out of the main multisig is out of scope for this report and should be included in the GCP's own reporting processes.

+225m

(129.4m)

(9.4m)

86.2m

Funding Received

Funding Sent to Foundation-controlled Wallets

Funding Sent to Other Wallets

Funds Remaining in Multisig

15

Arbitrum DAO - Treasury Management

Arbitrum Stable Treasury Endowment Program (STEP)

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

9.8m

9.5m

5.4m

5.4m

Market Value June 2025 $31M Interest Earned (LTD) $863k Yield LTD (Cash on Cash) 2.9%

5.2m

5.2m

3.5m

3.5m

3.5m

3.5m

3.6m

3.6m

152

1.7k

USD Cost 30.3m USD Market Value 31.1m USDCost Interest Earned (LTD)

Yield LTD Cash on Cash

Securitize BUIDL

9,523,937 5,194,875 5,194,875 3,463,250 3,466,516 3,463,250

271,219 159,104 165,505 92,033 76,250 98,466

2.85% 3.06% 3.19% 2.66% 2.20% 2.84%

OndoUSDY

Superstate USTB Mountain USDM OpenEden TBill

Backed Finance blB01

USDC (Circle)

1,734

Total

30,308,437

862,577

2.85%

The STEP manager updated the DAO regarding Mountain Protocol during May 2025 - it was acquired by Anchorage Digital and is in the process of winding down USDM. The DAO's full position was liquidated into USDC.

The full balance of USDC was still held at the end of June 2025.

1m

31.1m

31.1m

31m

30.9m

31m

30.8m

30.7m

862.6k

30.5m

30.5m

769.5k

800k

30m

672.8k

572.3k

29.5m

600k

29m

459.4k

400k

28.5m

356.9k

28m

251.5k

200k

27.5m

111.3k

113k

105.4k

102.5k

100.4k

99.8k

96.7k

93.1k

27m

40.4k

0

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Apr 25

May 25

Jun 25

Market Value (USD)

Monthly Interest Generated (USD)

Cumulative Interest Generated (USD)

16

Arbitrum DAO - Treasury contd.

Stable Treasury Endowment Program 2.0

During June 2025, the STEP 2.0 program continued with its conversion strategy. In total, the wallet received 35.125M ARB and now holds 18M ARB and 8.4M USDC. A Snapshot vote was also passed to allocate redeemed USDM funds from STEP 1.0 towards the protocols approved under the 2.0 program, effectively putting back to work the ~$3.5M currently sitting idle from the first program.

Treasury Management V1.2

During June 2025, the multisig holding the initially-allocated 26M ARB started moving funds around. 15M ARB was transferred out of the wallet during June, with 43k USDC.e received. The multisig therefore holds:

- 11.8M ARB - 319k USDC - 43k USDC.e

It also holds some of the funding related to the growth management vertical and currently holds: - 4.1k wstETH

Entropy has prepared a Dune dashboard outlining the various DAO holdings, under STEP and the Treasury Management proposals, given that funds are not all held within the original multisigs.

17

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

18

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 - Operational Funding

ARB

USDC/T

Funding Received in New Wallet

3,556

232,899

Funding Received from Hackathon

102,582

June Operational Spend

(3,555)

(334,879)

Remaining Funding

1

602

During May 2025, all funds remaining in the old Questbook multisig were moved to a new wallet (3C67).

In June 2025, the new wallet sent 335k USDC and 3.6k ARB, after receiving 103k USDC from the Hackathon continuation wallet. The multisig therefore holds onto a small balance of both assets as at the end of June 2025.

Domain Allocator Offerings - Second Round

During May 2025, the second round wallets deployed funding of $14k, taking total deployment to $2.7M. The 4 multisigs still hold $428k in them - based on the most recent 3 months of spending, this will cover grant spend for approximately 6 months before the multisig is fully emptied.

Questbook Grant Program Stablecoin Funding - 2nd Round

770.3k

770.3k

770.3k

770.3k

693.6k

661.7k

657.4k

Remaining USDC Funding 428k

640.5k

129.7k

112.9k

108.5k

76.6k

Gaming

Developer Tooling on NOVA

New Protocol Ideas

Education, Community growth and events

Stablecoin Funding Received 3.1m

Stablecoin Grants Spent 2.7m

Stablecoins Remaining in Wallets 427.7k

19

Domain Allocator Offerings - Third Round

Operational Spend to Date

528k

368k

160k

96.6k

70.6k

60k

40k

30k

30k

26k

20k

Domain Allocators

Program Manager

Questbook Platform

Legal Expenses

USD Budget 714.6k

USD Spent to Date 206k

USD Remaining to be Sent 508.6k

During June 2025, the DDA wallet sent 6.3M ARB and received 1.2M USDC, which it transferred to the OPEX wallet. The main multisig still held 11.3M ARB at the end of June 2025. 103k of USDC funding was deployed on operational costs for the program. Total spend to date is 206k USDC - the OPEX wallet held 515k USDC at the end of June 2025, therefore a top-up of funding will be required to cover the remainder of service provider fees.

DDA Grant Program Stablecoin Funding - 3rd Round

750k

750k

750k

750k

750k

716.5k

648k

635.8k

Remaining USDC Funding 3.1M

375k

350k

114.2k

102k

33.6k

25k

Developer Tooling on NOVA

Education, Community growth and events

Gaming

New Protocol Ideas

Orbit

Funding Received 3.4m

Grants Spent 274.8k

Remaining in Wallets 3.1m

During June 2025, 127k USDC was deployed across the 5 grant categories, although nothing was spent (and no spending has occurred to date) on the New Protocols category. The majority of funding was deployed out of the Gaming vertical, with Dev Tooling following closely behind.

The largest grantees have been GAM3S.GG x Arbitrum Gaming Expansion and Raijin Creator Convergence, both under the Gaming category.

20

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 June 2025 , the 4 committee members received 5k ARB each, taking their total compensation to 140k ARB.

Funding was also deployed to a few different protocols, with total funding spent in June of 512k ARB. Total spend under the program is therefore 1.3M ARB. 7.9M ARB was transferred from the old multisig to the new, Foundation-controlled wallet given the wind-down of the MSS program. No funding has been deployed from the new wallet, which held the full 7.8M ARB at the end of June 2025.

21

Arbitrum DAO Token Flow Report June 2025

22

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