Arbitrum DAO - Monthly Token Flow Report - Genesis to July 2024

Governance DAO Finances
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This category is for the Arbitrum DAO’s monthly token flow report. It aims to provide a basis for future monthly reports and highlight key insights the DAO may wish to action.

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As outlined in the Arbitrum Multi-sig Support Service (MSS) proposal, which passed Tally on 16 August 2024, r3gen Finance will be preparing a monthly Token Flow Report outlining the token inflows and outflows relating to wallets controlled by the Arbitrum DAO. This first report covers the period from the DAO first launching (March 2023) until the end of July 2024 (i.e. genesis to date). The purpose of this Genesis-to-Date report is to provide a basis for future monthly reports and highlight key insights the DAO may wish to action.

Please see link below to our full report:
July Token Flow Report

The key highlights of the report are:

  • Total transaction fees collected of 41.6k ETH, with 27.4k ETH relating to sequencer fees for net fees collected by the DAO of 14.2k ETH (pg 4)
  • Total transaction fees collected fell by 77% from the 3 months before to the 3 months post the “Atlas” upgrade (pg 6)
  • The DAO spent 125M ARB and 1.3M USD (in stablecoins). No ETH has been spent since inception, although there is a BoLD validator proposal queued on Tally to allocate 5.1k ETH to the Foundation. The remaining ETH balance could be deployed to generate annual returns of 350 - 450 ETH (USD1.2M - 1.5M) at 4 - 5% staking rewards
  • Due to falling ARB price and operational costs defined in USD, 1 proposal group (ARDC) exhausted ARB funding without meeting USD commitments made to service providers in the early stages of the proposal process. Moreover, 2 ARDC service providers were paid a higher ARB amount than they were contractually entitled to receive as the service contract was signed based on fixed ARB amounts. This is an issue that could be repeated in future when compensation is referenced in dollars but contracted and paid for in ARB (pg 12)
  • Operational costs represent the highest % of total budget for grant programs (15%) and ventures (11%), both of which are considerably higher than the DAO’s average operating cost burden of 6%. (pg 10)
  • The DAO has approved proposals that allocated 437M ARB out of its treasury - this represents 12% of total DAO holdings. The DAO could sustain this level of ARB ‘spend’ for 8 years before exhausting its treasury holdings.

We welcome any feedback or comments on the report, including areas to focus on for future months’ reports.

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Extremely insightful - thank you for putting this together!

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