Arbitrum Token Flow Report - March 2025

Arbitrum DAO Token Flow Report

March 2025

Prepared by Regen Financial

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.

Arbitrum DAO - Key Facts and Figures (since inception)

437M ARB Total DAO ARB Expenditure 4.4M USD Total Stablecoin spending

12.9k ETH DAO ETH Holdings 3.1B ARB DAO ARB Holdings

28k ETH Total Sequencer Fees 46k ETH Total Transaction Fees

Arbitrum TVL (DefiLlama)

1.6m

3.8b

3.5b

1.4m

3.4b

3.5b

1.4m

1.3m

3.3b

1.2m

2.9b

1.1m

2.8b

987.2k

968.8k

952.6k

2.7b

2.8b

915.6k

880.9k

2.6b

800k

2.5b

Apr 24 May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

TVL (USD)

TVL (ETH)

Arbitrum Ecosystem Stats (Arbiscan)

60m

170

54.5m

158

50m 50.8m

160

48m

45m

42.8m

41m

150

146

39.3m

37.6m

35.8m

36m

33.2m

140

28.7m

133

131

129

127

130

22.3m

24m

122

118

120

12m

110

105

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

100

Apr 24

May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

ArbitrumOne Average Daily Tx

ArbitrumOne Unique Addresses

ArbitrumOne Average Verified Contracts

DAO Monthly Token Flows March 2025

537 ETH Total Revenue Total Transaction Fee Inflows

Total Sequencer Fees Collected 28 ETH

0.95

Net Fee Flow

509 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)

250.7m

49.5m

24.5m 27.6m

4.8m

4.7m

3.7m

2.7m

2.9m

1.8m 812.3k

2.3m

1.4m

1.1m

1.3m

Apr 24

May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 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. Note that April saw a net inflow as STIP protocols returned funds. Note the significant increase in October was driven by an AIP sending 250M ARB to the Foundation - this is deemed as having been spent by the DAO and will fall under the Foundation's transparency reporting processes.

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

Current Month Genesis to Date

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

Transaction Fee Inflows

2,913,154

94,884,859

Sequencer Fee

(149,813)

(48,884,507)

Net Fee Flow

2,763,342

46,000,353

Interest generated by STEP

STEP Income

301,550

998,082

DAO Expenditure

(4,509,681)

(441,325,515)

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

Net Token Flows During the Period

(1,444,790)

(394,327,080)

Fee Inflows

DAO Fee Inflows - March 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 28 (5.1%) L2 Base Fee 126 (23.5%) L2 Surplus Fee 383 (71.4%)

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)

1.5k

47k

46.4k

46k

45.8k

1.3k

45k

44.4k

44k

43.5k

43k

750

43k

42.7k

42.4k

554

42k

41.6k

500

688

663

41.3k

310

481

213

41k

383

131

250

106

162

127

114

40k

39.8k

110

119

106

244

102

194

118

119

126

118

163

39k

Apr 24

May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

L1 Base Fee

L1 Surplus Fee

L2 Base Fee

L2 Surplus Fee

Cumulative Revenue

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, 28.2k ETH has been charged in L1 Base Fees. The sequencer has periodically claimed that amount and as at the end of March 2025, was owed ~2 ETH which it can claim at any point.

Sequencer Fee Flow (ETH)

+28.2k

(20.2k)

(7.1k)

(194)

(648)

(31)

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" 46%

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 March 2025 , the total net flows amounted to 18.1k ETH, streamed periodically to the L2 Treasury Timelock Wallet. Net transaction fees collected in March 2025 amounted to 509 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 46% (for the months of April 2024 to March 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)

18.1k

17.6k

16.9k

16.4k

15.7k

15.4k

15.2k

15k

14.2k

13.9k

12.8k

12.6k

1.1k

806

685

761

600

509

280

339

415

233

188

195

Apr 24

May 24

Jun 24

Jul 24

Aug 24

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Net Fee Flow

Cumulative Net Fee Flow

Treasury

ARB Treasury Holdings 2.8B

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

18.1k

BoLD Validator Send ETH Attackathon Send Treasury Management Send

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

ETH Treasury Holdings 5.4k

NET DAO ETH

5.5k

ARB Holdings 1b (94.6%) ETH Holdings 23.1m (2.2%) USD Holdings 33.9m (3.2%)

ETH in Fee Wallets ETH in L2 Treasury Wallet

0.1k 5.4k

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 Treasury ETH

5.5k

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 - ARB and USD Overview

USD Stablecoin Holdings

ARB Holdings

DAO Treasury

2,793,293,010 155,608,333 35,125,000 30,000,000

Catalyze Gaming Ecosystem Growth

STEP 2.0

OpCo

Entropy - Treasury Management and Events Domain Allocator Offerings Season 3

26,749,998 21,627,138 9,160,000 9,062,870 7,000,000 291,013

Sylus Sprint

DIS - New Multisig

Event Horizon Arbitrum MSS

ARDC v2

90,826 3,556

Questbook Wallets

871,293 615,710 89,313

DAO Season 3 e728 Wallet

DAO Treasury ADPC - Aera Vault ADPC - Multisig

1,996

33,880

ADPC Phase II Multisig

1,561,534 30,767,805 33,941,531

STEP (using most recent 28 Feb report)

TOTAL

3,088,011,743

Note immaterial balances not included.

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)

(229.3m)

(14.8m)

357.7m

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 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

+341.8m

+500k

(320m)

22.3m

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

319,500,001

Total ARB Spent

370,000,009

Total ARB Unspent

379,999,991

ARB Unspent in Vesting Wallet

357,706,821

ARB Unspent in Foundation Wallet

22,293,170

Total ARB In Wallets

379,999,991

DAO Spend Analysis

Monthly ARB Expenditure - Last 6 Months

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

DAO Expenditure in ARB

(250,206,292)

253,904

(5,468,706)

(1,087,885)

(4,087,319)

(4,106,803)

DAO Expenditure in USD - converted to ARB Total DAO Monthly (Expenditure) / Income

(462,778)

(473,733)

(337,901)

(380,191)

(307,476)

(402,878)

(250,669,070)

(219,829)

(5,806,607)

(1,468,076)

(4,394,795)

(4,509,681)

*positive ARB spend relates to LTIP protocols returning funds

*includes 250M ARB sent to the Foundation

Note figures may update in each version of the report

monthly expenditure ARB 45M using 6-month average

ARB 251M monthly expenditure using highest 1 month

ARB 3.5M 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%

646

3 Month Average Spend (in ARB)

3 Month Average ARB Spend, Increased by 50%

808

539

Highest Month Spend (in ARB)

3 Month Average ARB Spend, Increased by 75%

462

ARB Introduced into Circulation

Treasury Allocated to Proposals 23% 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 March 2025, the DAO approved 838M ARB worth of spending outlined in various proposals. This represents 23% of the DAO's initial treasury balance of 3.6B ARB. Spending began in August 2023, with a total of 441M ARB spent to March 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.

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 60m (7.2%) Ecosystem Incentives 154.9m (18.5%) Ventures 478.7m (57.2%) Treasury Diversification 96.4m (11.5%) Grant Programs 33.7m (4.0%) Direct Grants 13.9m (1.7%)

DAO Core 12.7m (2.9%) Ecosystem Incentives 115.5m (26.2%) Ventures 263.1m (59.6%) Treasury Diversification 35.3m (8.0%) Grant Programs 10.2m (2.3%) Direct Grants 4.5m (1.0%)

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

60m

+4m

+6m

+325k

+600k

+12.1m

+1.2m

+5.7m

Arbitrum Research & Development Collective (incl. v2)

ArbitrumDAO Procurement Committee (incl. Phase II)

Delegates Incentive System (incl. v2)

Multisig Support Service

Entropy Advisors

Event Horizon

DAO Events Budget

OpCo

Total

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

+509.2k

12.7m

+200k

+6m

+309k

+2.6m

+938k

+2.2m

Arbitrum Research & Development Collective

ArbitrumDAO Procurement Committee (incl. Phase II)

Delegates Incentive System

Multisig Support Service

Entropy Advisors

Event Horizon

DAO Events Budget

OpCo

Total

Arbitrum Research & Development Collective v2

The only funding deployed during March 2025 was a single send event of $11k to Nethermind.

ARB Remaining in Multisig Wallet ARB91k USDC Remaining in Multisig USDC1.6M

The balance of funds held in the Aera vault (USDC1.57M) was transferred back to the multisig during the month, to be allocated to the ARDC members. Total spend is therefore $184k, with $1.5M still owing and on-hand in the multisig. The multisig also holds ARB91k and owes no further providers or council members - this is therefore expected to be excess funds from the initial budget.

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

358k

330k

297k

(35,000)

(89,174)

66k

52k

33k

(173,000)

Funds Remaining in Multisig

Security - OpenZeppelin

Research - Llama Research

Research - Castle Capital

Risk - Nethermind

90,826 1,572,534

USD Budget 1.7m

USD Sent to Date 184k

USD Remaining to be Sent 1.5m

Arbitrum DAO - DAO Core contd.

ArbitrumDAO Procurement Committee - Phase II

120k

119.3k

54k

33.9k

20.1k

665

Member 1 - Axis Advisory

Member 2 - Areta

Member 3 - Daimon Legal

Operational Budget

USD Budget 414k

USD Spend to Date 378.1k

USD Remaining to be Sent 35.9k

The ADPC spent $76.2k on Committee member compensation during March 2025, taking total committee spend to $358k to date. It also spent $16k on operational costs, taking total spend to $378k. The multisig wallet has $34k remaining in it, while the Aera vault has been largely cleared ($2k and 51 ARB remain in it). The ADPC's term ends on 14 April 2025, and at this stage there are no plans to renew the program.

Delegates Incentive Program (DIP)

The DIP passed on Tally in October 2024 - it aimed to build on the momentum gained from the initial period and outlined a budget for a 12-month period. The combined budget across both delegate incentive programs is outlined below.

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

6.8m

2.3m

369.1k

225.9k

143.2k

188.2k

90.3k

97.9k

30k

Delegate Incentives

Admin Costs - SEED Latam

Karma Development

Multisig Signers

ARB Budget 9.7m

ARB Sent to Date 2.6m

ARB to be Sent 7.1m

Arbitrum DAO - DAO Core contd.

Total Delegates Incentivised 67

Average Total ARB Incentive per Delegate ARB34.7k

ARB Remaining in DIS Multisig Wallet ARB9.1M

Average total monthly ARB incentives ARB193k

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

1.5m

85.4k

72.5k

72.3k

70.6k

68.7k

66.2k

65.7k

63k

62.9k

59.8k

58.6k

56.5k

Multisig Support Service (MSS)

The MSS multisig spent 64k ARB in the current month across signers and chairs plus Regen Financial's Token Flow Report. It is worth noting that, using the 31 March price of ARB, the multisig holds the equivalent of USD96k vs. expected future commitments of USD153k. There is therefore a shortfall of USD56k at a price of $0.3313 / ARB. The breakeven ARB price is ~$0.52.

Balance in Wallet ARB291k (USD96k) Surplus / (Shortfall) to pay Roles (USD56k)

162k

90k

81k

79.8k

53.2k

45k

26.6k

MSS Chairs

MSS Signers

Regen Token Flow Report

USD Budget 331.8k

USD Spend to Date 179.2k

USD Remaining to be Sent 152.6k

Arbitrum DAO - DAO Core contd.

OpCo: A DAO-adjacent Entity for Strategy Execution

During February 2025, the OpCo proposal was passed on Tally, outlining a plan to establish a legal entity that delegates and key stakeholders can leverage to achieve DAO-defined goals, principally by forming an operational mesh layer and assigning internal employees or negotiating and entering into agreements with service providers and individual contributors to facilitate initiatives. OpCo’s mission is to negate identified frictions affecting the DAO’s strategy execution, such as allowing for the establishment of more operational roles for the DAO, facilitating efficient and competitive contributor and service provider negotiations and information flow between these parties, creating clear responsibilities for carrying out initiatives, and helping ensure the continuation of programs the DAO depends upon. OpCo is also required to be proactive, meaning that if the entity has the bandwidth and recognizes a potential advancement that could be made within its mandated focus areas, it can work on and propose a strategy through which the entity would address the identified frictions. The initial period of the OpCo is 30 months before possible renewal, with 6 months to establish all operations and then a 24-month initial operational period. The total ARB requested was 30M. OpCo Operational Budget

Full Budget

Per Annum Per Month

Internal Employee Salaries Chief Chaos Coordinator

5,328,000 720,000 384,000 4,224,000 4,945,000 2,400,000 2,545,000 1,125,000

2,664,000 360,000 192,000 2,112,000 2,472,500 1,200,000 1,272,500 450,000

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

Chief of Coins

Other 10 Employees Setup and Admin Costs

Legal Services

Other Setup and Admin Costs *

Oversight and Transparency Committee (5 members) *

TOTAL COST (USD)

11,398,000

5,586,500

465,542

Internal Employee Bonus (in ARB)

3,000,000 1,000,000

1,500,000 500,000

125,000 41,667

Oversight and Transparency Committee Bonus (in ARB)

TOTAL COST (ARB) 166,667 * These costs include elements in the initial 6-month establishment period, whereas other costs are only for the 24-month operational period. These establishment costs are: - $690k for entity setup (plus a buffer) in the first 6 months, based on GCP's estimated expenses - $225k for the Oversight and Transparency (OAT) Committee for the first 6 months ($12.5k per member per month) 4,000,000 2,000,000

During March 2025, the OAT was elected, with the below persons occupying the 3 elected roles: - Patrick McCorry - A.J. Warner - Frisson

All funds remain unspent.

DAO Events Budget

The DAO voted to deploy finding from the $1.5M total events budget to be used at ETH Bucharest, with a Snapshot proposal passed outlining spending of $55.8k. In total, the events budget multisig has spent $436,451, with the majority ($400k) relating to ETH Denver. $14k was returned to the DAO treasury wallet in Feb 2025. 14

Arbitrum DAO - Ecosystem Incentives

This relates to funds allocated towards users in the Arbitrum ecosystem, distributed to them via protocols built on Arbitrum. The funding is used to directly incentivise network and user growth on Arbitrum.

Ecosystem Incentives Budgets (ARB)

200m

+45.7m

154.9m

+37.6m

+21.5m

+50.1m

Short Term Incentives Program

Short Term Incentives Program Backfund

Short Term Incentives Program Bridge

Long Term Incentives Program

Total

Short Term Incentives Program (STIP)

The STIP has been fully closed out, with all funds remaining in the multisig returned to treasury in August of 2024.

STIP

Backfund

Bridge

Protocols approved for funding under the STIP program that weren't funded

Protocols funded in STIP or STIP backfund eligible to receive an additional incentive

DAO-funded incentives targeting active Arbitrum protocols

Rationale

Incentive Budget (ARB) Operations Budget (ARB) Incentives Actually Allocated (ARB) Number of Protocols Allocated Funding

50,000,000

21,400,000

37,500,000

94,000

120,000

100,000

50,038,044

21,312,500

37,025,522

Funding Sent (ARB)

48,893,148 (1,036,833) 47,856,315

17,533,929 (1,705,936) 15,827,993

27,247,306

Funding Returned (ARB) Net Funding Spent (ARB) Number of Protocols Sent Funding

(629,829)

26,617,477

Total STIP Allocation and Spend (ARB)

150m

+37.5m 108.9m (48.9m)

100m

+21.4m

+1m (17.5m)

+50m

+1.7m (27.2m)

50m

+629.8k

18.6m

Arbitrum DAO - Ecosystem Incentives contd.

Long Term Incentives Program

LTIP

Rationale

Test new incentive designs to ensure the DAO is ready to commit to a long-term program

Incentive Budget (ARB)

45,000,000

Operations Budget (ARB)

735,000

Incentives Actually Allocated (ARB)

30,654,389

Number of Protocols Allocated Funding

Funding Sent (ARB)

30,337,723

Funding Returned (ARB)

(5,865,956)

Net Funding Spent (ARB)

24,471,767

Number of Protocols Sent Funding

LTIP ARB Allocation vs. Spend

+45m

(30.3m)

+5.9m

20.5m

ARB Budget

ARB Spent

ARB Returned by Protocols

ARB Unspent

On 31 January 2025, the LTIP Multisig returned 31M ARB to the DAO Treasury Wallet. - this balance is made up from:

- 85.2M being received via AIP's - 60.5M being sent to Hedgey to distribute incentives to protocols under LTIP and the STIP Bridge - 6.5M being received from protocols returning unused incentives (under STIP Bridge and LTIP) - 0.4M being sent to various parties under operating expense budgets

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 March 2025, 40M ARB was moved out of the main GCP multisig to a Foundation-controlled wallet - this was the first vest portion for the GCP, and an additional 20M ARB is expected to vest every quarter (starting in June 2025). It was also confirmed that the GCP entity has been created and is a foundation based in the Cayman Islands (GCP Foundation) - company bylaws have also been shared. The program posted a detailed update in March outlining operations and potential deals. To date, 69.4M ARB has been transferred out of the multisig wallet: - 60M ARB has been specifically flagged as having been sent to Foundation-controlled wallets - 9.4M ARB not specified, to be used for OPEX etc.

In the current month, 3.1M ARB was sent to non-controlled wallet and therefore deemed to have been spent.

+225m

(60m)

(9.4m)

155.6m

Funding Received

Funding Sent to Foundation-controlled Wallets

Funding Sent to Other Wallets

Funds Remaining in Multisig

Arbitrum DAO - Treasury Management

Arbitrum Stable Treasury Endowment Program (STEP)

The STEP report, covering 1 - 31 March 2025, was published on the forum and is summarized below (this is the most recent report).

9.7m

5.3m

9.5m

5.2m

Interest Earned (LTD) $572k Yield LTD (Cash on Cash) 1.9% Market Value 31 Mar 2025 $30.9M

3.5m

1.7k

USD Cost 30.3m USD Market Value 30.9m

Interest Earned (LTD)

Yield LTD Cash on Cash

USDCost

Securitize BUIDL

9,523,937 5,194,875 5,194,875 3,463,250 3,468,250 3,463,250

179,481 103,660 111,095 74,592 41,770 61,734

1.88% 2.00% 2.14% 2.15% 1.20% 1.78%

OndoUSDY

Superstate USTB Mountain USDM OpenEden TBill

Backed Finance blB01

USDC (Circle)

1,734

Total

30,310,171

572,332

1.89%

700k

31m

30.8m

30.7m

30.9m

30.5m

600k

572.3k

30m

500k

459.4k

29.5m

400k

356.9k

29m

300k

28.5m

251.5k

28m

200k

140.2k

113k

27.5m

111.3k

105.4k

102.5k

99.8k

100k

26.9m

40.4k

27m

Oct 24

Nov 24

Dec 24

Jan 25

Feb 25

Mar 25

Market Value (USD)

Monthly Interest Generated (USD)

Cumulative Interest Generated (USD)

Arbitrum DAO - Treasury contd.

Stable Treasury Endowment Program 2.0

During February 2025, an AIP outlining STEP 2.0 was passed on Tally. The key details of the program were: - diversify a further 35M ARB into real world assets that are stable in value, liquid in conversion and have yield uncorrelated to crypto markets - diversify the DAO's treasury and generate ecosystem growth for Real World Asset protocols on Arbitrum The proposal aimed to achieve 3 broad objectives: - Show that Arbitrum has a plan for the RWA vertical and projects in this sector should build on the chain, by building a regular cadence to the STEP program as the flagship program for RWA support; - Let the DAO directly own stable RWAs through a competitive selection process for providers, instead of paying 1% AUM to treasury managers for selecting and holding low risk assets on our behalf. Use yield from the products to cover operational expenses by sweeping it as USDC to the ARB DAO treasury; and - Provision funds ahead of time for optimal execution and take advantage of tailwinds when they arise for diversifying the treasury. Building up an endowment will let us weather even bear markets from an abundance mindset. The proposal outlined a similar committee structure to STEP 1.0, with each of the below committee members receiving 25k ARB compensation (10k ARB on completion and 15k ARB via a Hedgey stream over 3 years): - GFX - Northlake - Nethermind - Karpatkey - Devansh Meta (who subsequently stood down and was replaced by Entropy who waived their fee) as a non-voting facilitating member

All funds remain in the Foundation-controlled multisig.

Treasury Management V1.2

During March 2025, Snapshot votes closed to decide on the next steps in the Treasury Management proposal.

TMC Stablecoin Recommendation

The DAO voted YES to allocate 15M ARB (to be converted into stablecoins by the Foundation) to: - Karpatkey - Avantgarde & Myso - Gauntlet

Funding will be split equally between the above parties.

TMC ARB Recommendation

The DAO voted NO to allocating 10M ARB to: - Karpatkey - Avantgarde & Myso for ARB-only strategies.

GMC's Preferred Allocations (7,500 ETH)

The DAO voted YES to allocating 7.5k ETh as outlined below: - 5k ETH to Lido for liquid staking - 4.2k ETH to Aave to encourage LRT borrowing against wstETH in collaboration with Lido, Aave, Renzo, and Kelp - 2.5k ETH to Fluid to lend on their Arbitrum platform - 0.8k ETH to Camelot as single sided liquidity into the wstETH/ETH liquidity pool on Camelot V3

Note the 4.2k ETH for Aave and the 0.8k ETH for Camelot are stETH (as wstETH) from the 5k ETH allocated to Lido (i.e. the stETH from Lido will be deployed on Aave and Camelot).

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

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 - Flow of Grant Funding

ARB

USDC/T

Grant 1 Budget

800,000 (800,000) 120,000 380,578 (424,398)

ARB Sent to Program Wallets

ARB Returned from Program Wallets

ARB Received from Program Wallets to Swap to Stablecoins

ARB Swapped into USDC for Programs Stablecoins sent to Program Wallets Stablecoins Returned from Program Wallets

728,143 (675,000)

61,000

Grant 2 Budget

3,300,000 (3,300,000)

Grant 2 Budget Swapped to Stablecoins Stablecoins sent to Program Wallets Funding Available for Operational Costs ARB Swapped for Operational Spend Funding Spent on Operational Costs

3,393,024 (3,081,000)

76,180

426,167

(2,797) (73,383)

4,003

(386,680)

Remaining Funding

43,490

During March 2025, the Questbook program spent 8.4k USDC on operational costs. The multisig wallet therefore had 43k USDC in it.

Questbook - First Round

No first round spending occurred during the month, meaning funds have sat idle in first round wallets for 3 months. All remaining funds were transferred to the multisig wallet early in April 2025.

Domain Allocator Offerings - Third Round During March 2025, the DAO multisig converted 1.8M ARB into $616k and transferred the funds into the OPEX multisig.

No funding has been spent on grants or OPEX to date.

USDBudget

Grants

6,750,000 1,500,000 1,500,000 1,500,000 1,500,000 750,000

New Protocols and Ideas

Education, Community Growth and Events

Dev Tooling on One and Nova

Gaming

Orbit

Operating Costs

714,550 528,000 105,600 105,600 105,600 105,600 105,600 96,550 85,800 10,750 60,000 30,000

Domain Allocators

Castle Capital (New Protocols and Ideas)

SeedGOV (Education, Community Growth and Events)

Juandi (Dev Tooling on One and Nova)

Flook (Gaming) MaxLomu (Orbit)

Program Manager

Jojo - USD

Jojo - ARB Converted into USD @$0.43

Questbook Platform Legal Expenses

Grant Spend - Second Round

Questbook Grant Program Stablecoin Funding - 2nd Round

770.3k

617.9k

620.3k

Remaining USDC Funding 638k

612.5k

591.9k

178.4k

157.7k

152.4k

149.9k

Gaming

Developer Tooling on NOVA

New Protocol Ideas

Education, Community growth and events

Stablecoin Funding Received 3.1m

Stablecoin Grants Spent 2.4m

Stablecoins Remaining in Wallets 638.4k

During March 2025, 208k of USDC funding was deployed across the 4 grant program categories, taking total grant spending to date to 2.4M USDC across grantees. Each sub-category has USDC remaining in their wallets totalling 638k USDC.

Questbook - Round 2 Grants

USDC Grants

Gaming

617,879 40,000 40,000 37,500 500,379 591,900 48,000 46,000 40,000 457,900 612,510 40,000 35,000 32,000 505,510 620,318 40,000 35,720 34,788 509,810

GamingGrid

Upptic Growth Agency UGC Campaign Bot

Other Grantees

Developer Tooling on NOVA

Search Multichain Worlds on Arbitrum with Dora Open Source Code Contribution Dashboard (DevRel)

Lava Public RPC Other Grantees

New Protocol Ideas

Arbitrum Proposals App

Locale Network

ArbitrumDAO Governance Analytics Dashboard - Curialab

Other Grantees

Education, Community growth and events

Merge Madrid

Online+IRL Hackathon Support Arbitrum LATAM

Other Grantees

Arbitrum DAO Direct Grants

ARB Allocated

+251.9k

9.9m

+5.3m

+4.3m

Previous Grants

Fund the Stylus Sprint

Arbitrum Hackathon Builder Continuation Program

Total Direct Grants

Fund the Stylus Sprint

During March 2025, the 4 committee members received 5k ARB each, taking their total compensation to 80k ARB. 60k ARB was also deployed from the multisig at the end of March.

In total, 170k ARB has been spent from the Stylus multisig: - 80k ARB on committee compensation - 30k ARB on Questbook service fees - 60k ARB not specified to date

During March 2025, a Tally proposal was passed extending the budget of the Stylus Sprint by 4M ARB. It aims to extend the number of applicants the program can fund, as many were earmarked for funding but the initial proposal had insufficient funds to fund all of them.

Arbitrum DAO Token Flow Report March 2025

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