Annual Report | Arbitrum DAO | 2024
The Arbitrum Foundation has enabled the DAO to assume full responsibility for the chain’s technology, future, as well as how to deploy net transaction fee revenue. With the DAO assuming those rights and controls, it also assumed the responsibility to fund the ongoing operations of the chains and the costs of running critical chain infrastructure, including RPCs, the Sequencer, and third-party vendors and service contracts. While there are many activities that the DAO can do directly on-chain, several of its responsibilities require a representative that can engage, maintain and enter new agreements with service providers to run infrastructure that’s critical for the ecosystem (e.g. servers, RPCs, block explorers, data feeds and analytics platforms, and tooling), and ensure that both the chain and the ecosystem have the support they need to continue to thrive. In order to ensure a smooth transition to the DAO without any interruption of services, it was necessary to create an organization that would be ready to service the DAO immediately from launch. The Arbitrum Foundation was created to fill this need, with its mission and scope outlined across the Foundation Bylaws. Prior to the launching of the DAO, The Arbitrum Foundation assumed responsibilities for funding and running chain infrastructure. However, in an arrangement that appears to be unique amongst Arbitrum’s peers, the Foundation does not receive or control the net revenue from transaction fees as this is given directly to the DAO treasury. 7.5% of ARB tokens (ARB750M) was transferred to the foundation in the initial token airdrop. A portion of these tokens were spent before AIP1.1 required them to be placed into a vesting wallet with a four-year lock-up period, thus the balance ARB were transferred to that wallet. Arbitrum DAO - The Arbitrum Foundation
Foundation Initial ARB Transactions
1b
+750m
(40m)
(10.5m)
699.5m
750m
500m
250m
0
ARB Airdropped
ARB Sent to Wintermute
ARB Sent to Other External Wallets
ARB Sent to Foundation Vesting Wallet
The Foundation can call fund over time from the vesting wallet. These unlocked funds are then withdrawn from a vesting wallet to a wallet controlled by the foundation:
Foundation Vesting Wallet ARB Transactions
750m
+699.5m
(47.9m)
(20.6m)
(29.2m)
(28.2m)
(23m)
550.7m
500m
250m
0
ARB Received
ARB Unlocked and Sent - July 2023
ARB Unlocked and Sent - September 2023
ARB Unlocked and Sent - November 2023
ARB Unlocked and Sent - January 2024
ARB Unlocked and Sent - February 2024
ARB Balance in Vesting Contract
11
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