As part of Entropy’s Advisory services, the team has been assisting Offchain with evaluating the potential impacts to DAO revenue and chain capacity if multidimensional gas pricing was activated. The primary focus of our study, along with the full report can be found below:
- Chain Revenue: whether activated multi-gas pricing can preserve L2 fee revenue at, or close to, post-ArbOS 51 levels.
- Chain Capacity: whether activating multi-gas pricing can increase effective chain capacity, measured as the L2 gas that can fit before transaction fees rise above the min base fee.
Main Findings
The Offchain research team specified two candidate resource-aware activation configurations for this study. Under the study assumptions, activation would increase effective capacity and reduce severe congested-day fee spikes, while lowering L2 fee revenue unless the min base fee is raised.
In terms of chain capacity:
- If activated, the modeled ArbOS 60 multi-gas pricing design would raise median effective capacity by about 62% over the full window versus ArbOS 51; the modeled median gain is about 131% pre-ArbOS 51 and about 62% post-ArbOS 51.
In terms of DAO revenue from L2 Transaction Fees:
- ArbOS 51 reduced transaction costs for users, while also reducing DAO L2 fee revenue in the observed period. If multi-dimensional pricing is activated, the calibration objective is to use available levers, including min base fee, to increase chain capacity while keeping DAO revenue at or close to ArbOS 51 levels; this is an activation target, not a result of the historical simulation.
- The study uses two historical simulations with a re-created multi-gas pricing model: a simulation of observed transactions without elasticity and an elasticity-adjusted stress test by wallet segment.
- In the simulation without elasticity, activated ArbOS 60 multi-gas pricing at a min base fee of 0.02 gwei would generate 1.81K ETH of full-window L2 fee revenue versus 2.87K ETH for the onchain ArbOS 51 baseline, a -36.8% change without taking elasticity into account, and similarly -36.7% if we take the elasticity scenario.
- For the elasticity-adjusted stress test, we group high-activity wallets into clusters: sets of wallets with similar transaction behavior, resource usage, and counterparty-label patterns. Within that classified-wallet scope taking the elasticity-adjusted stress test, the first two revenue-share clusters are the primary readout: C1 MEV Bots account for 58.5% of classified L2 fee revenue and carry the largest churn risk if multi-dimensional pricing got enabled, while C2 DeFi Users account for 17.3% and show limited modeled churn through the displayed range. This implies that C1 MEV Bots are more price sensitive than C2 DeFi Users and enabling multi-dimensional pricing will reduce C1 MEV Bot activity & their contribution to classified L2 fee revenue.