Fee Inflows
Arbitrum DAO-governed chains (Arbitrum One and Nova) programmatically generate ETH inflows through transaction fees paid by users within the Arbitrum ecosystem.
DAO Fee Inflows - March 2023 to July 2024 (ETH)
These fees are split into:
4.3k
Layer 1 Sequencer 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.
7k
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.
3k
27.4k
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 27.4k (65.8%) L1 Surplus Fee 3k (7.2%) L2 Base Fee 7k (16.7%) L2 Surplus Fee 4.3k (10.2%)
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)
6k
50k
265 575 189
41.3k 41.6k
39.1k 39.8k 40.1k
40k
36.5k
292 538
4.5k
561
32.7k
761
30k
224 538
24.6k
338
277 639 168
3k
21.6k
490
19k 20.2k
20k
318
4.4k
484
886
4k
258 530
450
2.9k
2.9k
1.5k
367
409
10k
2.2k
2k
2k
400
1.4k 1.6k
1k
1.2k
1.1k
814
481
577
162
119
98
0
0
L1 Base Fee
L1 Surplus Fee
L2 Base Fee
L2 Surplus Fee
Cumulative Revenue
The DAO implemented changes to transaction fees in the ArbOS v20 "Atlas" upgrade - when the Atlas upgrade was initially completed, there was an oversight on the fee. A subsequent Snapshot was passed, decreasing the below fee components:
DAO Fee Inflows - April 2024 to July 2024
- L1 Surplus Fee: decreased from 32 gwei to 0 gwei; and - L2 Base Fee: decreased from 0.1 gwei to 0.01 gwei
This was passed in March 2024 - the impact on transaction fee inflow is thus clearly seen by the drop in ETH flowing into DAO wallets post this upgrade. It also changed the make-up of transaction fees - the L2 Surplus Fee became the most material component of fees vs. the L1 Base Fee being the largest component before the upgrade. Average total monthly fee inflows in the 3 months post the upgrade fell by 77% relative to the 3 months before the upgrade - from 3,170 ETH to 725 ETH per month.
L1 Base Fee 243 (9.8%) L2 Base Fee 467 (18.8%) L2 Surplus Fee 1.8k (71.5%)
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