Arbitrum Token Flow Report - September 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 3.15B

DAO Assets - Converted into USD

The DAO collected 15.2k Ethereum in transaction fees in excess of the L1 fee owed to the sequencer, and has sent 5.1k ETH (on the BoLD validator proposal). The 10.1k ETH holdings were valued at USD 26.2M as at 30 September 2024.

ETH Holdings 10.1k

ARB Holdings 2.1b (97.2%) ETH Holdings 26.2m (1.2%) USD Holdings 32.7m (1.5%)

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

3,152,451,094 223,650,000

Catalyze Gaming Ecosystem Growth

LTIP - Multisig

29,756,492 7,000,000 3,500,000

Event Horizon Wallet ADPC Subsidy Fund

Delegate Incentive System

786,592 574,104 518,216 264,888 253,470

Arbitrum MSS

Plurality Labs - Grants Safety Multisig

Plurality Labs - Thrive Impact Foundation Multisig Arbitrum Research & Development Collective

Questbook Wallets

3,556

2,454,206 30,450,000 32,904,206

STEP

TOTAL

3,418,758,412

Note immaterial balances not included (e.g. GovHack - 8 ARB).

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