Arbitrum, the only rollup that sends all surplus revenue generated by transaction fees to their respective DAO, is making a move to collect the funds accumulated so far.
The company announced the news through its official Twitter handle on May 10, 2023, stating that it’s time for the DAO to collect the funds. Arbitrum has become a popular choice for decentralized applications (dApps) and developers alike, and this move is expected to further enhance its reputation and user base.
Big news Arbinauts!
Arbitrum is the only rollup that sends all surplus revenue generated by transaction fees to their respective DAO and it is time for the DAO to collect the funds so far!
Follow along to learn more about it.🧵👇
— Arbitrum (💙,🧡) (@arbitrum) May 10, 2023
According to Arbitrum’s tweet, all users on Arbitrum One pay a fee when transacting on the network, and the fee is split into two components – L1 fee and L2 fee. The L1 fee is for covering the cost of posting the transaction’s data onto the Ethereum blockchain, but it cannot perform that payment immediately. The Sequencer has to front the financial cost of posting the data onto Ethereum and later recoup it from the accumulated L1 fees. As a result, a large portion of the L1 fee is reserved for the Sequencer. The accumulated ETH for the Sequencer’s refund is around 5,954 ETH, which can be found here: https://arbiscan.io/address/0xE6ec2174539a849f9f3ec973C66b333eD08C0c18.
All remaining funds from the L1 fee are considered surplus and are accumulated elsewhere. The accumulated L1 surplus is around ~582 ETH, and it can be collected by the DAO. The L2 fee, on the other hand, covers the cost of using resources on Arbitrum and has two components – a min base fee that all transactions pay and a surplus base fee that is anything above the base fee. Both fees accumulate in separate smart contracts.
The base fee has accumulated ~1,308 ETH, and it can be collected by the DAO, while the surplus fee has accumulated ~1,462 ETH, which can also be collected by the DAO. In total, the Arbitrum DAO has accumulated ~3,352 ETH in revenue, and the Sequencer will be refunded ~5,954 ETH, which is the cost of posting all data to the Ethereum network.
The move by Arbitrum to allow the DAO to collect the funds has been welcomed by the blockchain community. It further strengthens the belief that the future of blockchain is in decentralized applications and that companies like Arbitrum are leading the way. The collection of these funds is expected to increase the DAO’s assets, which can be used to further enhance the development of the network and improve the user experience. Overall, this is a positive move for Arbitrum, and it is expected to further cement its place in the blockchain space.
Read more:
- Arbitrum’s Layer-2 Outdoes Ethereum With Daily Transaction Volumes
- Arbitrum Celebrates Crossing 200M Transactions & 4M Users; But Are Developers Leaving The Protocol?
- Arbitrum Generates Over $100 Million In Annual Revenue, Making Layer-2 Incredibly Profitable