Arbitrum Token Flow Report - July 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 DAO collected 14.2k Ethereum in transaction fees in excess of the L1 fee owed to the sequencer. This was valued at USD 46M as of July 31st, 2024 (price source: CoinGecko). 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 14,223

ARB Holdings 2.3b (96.6%) ETH Holdings 45.9m (2.0%) USDC Holdings 33.6m (1.4%)

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 (Equivalent) Holdings

ARB Holdings

DAO Treasury

3,160,488,568 224,650,000

Catalyze Gaming Ecosystem Growth

LTIP - Multisig STIP - Multisig

26,634,590 5,897,947 3,500,000 1,868,195 1,081,825 1,032,217

ADPC Subsidy Fund

Plurality Labs - Thrive Impact Foundation Multisig

Delegate Incentive System

Plurality Labs - Grants Safety Multisig

Arbitrum Ventures Initiative

191,700 163,324 100,932 91,478 56,566

Arbitrum Research & Development Collective

GovHack at ETH CC

51,932

Pilot Phase: M&A for Arbitrum DAO

(ADPC) - ArbitrumDAO Procurement Committee

STEP

30,450,000 3,297,746 33,799,678

Questbook Wallets

3,556

TOTAL

3,425,760,898

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