Ethereum Layer 2 Blockchain Arbitrum Will Distribute Ether, The project, announced on Twitter on May 9, is worth nearly $6.2 million for its decentralized autonomous organization (DAO). ARB holders must claim rewards.
The funds to be collected are base fees and surplus income generated from network transactions. According to Arbitrum's tweet, its DAO will collect a total of 3,352 ETH. As internet-native organizations, DAOs are collectively owned and managed by their membe ers. They have the Treasury and make decisions through proposals voted on by the panel. Arbitrum is a popular scaling network used by many decentralized application and blockchain developers. All users are charged fees when transacting on Arbitrum One.
At the time of writing, the cost of sending ETH on Arbitrum is currently $0.25, and exchanging tokens costs $0.68. Data from Crypto Fees shows that Arbitrum users paid $387,423 in fees over the past seven days.
Every fee paid on Arbitrum One is divided into two parts - L1 fee and L2 fee. According to the agreement, L1 fees cover the costs of publishing transactions on the Ethereum network, and L2 fees cover the costs of running the network. The income breakdown shows that the surplus function geenerated by l1 fees are approximately 582 ETH, the basic fees generate nearly 1,308 ETH, and the l2 fees geenticus of 1,462 ETH . Combined, This Represses Arbitrum's Dao Revenue of 3,352 ETH.
According to discussions of the proposal on the Arbitrum governance forum, the protocol would create a revenue distribution mechanism that would be periodically triggered by a smart contract. Only delegated ARB tokens are eligible for income distribution and holders must claim rewards. Arbitrum said the move would “align community incentives and give the ARB purpose beyond worthless governance tokens.” According to the governance forum, most community members supported the proposal. However, some members emphasized that the income distribution may further classify ARB tokens as securities . Arbitrum's incentive program was launched After the protocol team clashed with the community over the transfer of nearly $1 billion in funds that were not approved by ARB holders.
