First, I would like to outline a few pros and cons:
Pros:
- Reduction of unnecessary and quite significant costs for Arbitrum.
- No more need to subsidize Nova, as Arbitrum has already significantly reduced fees thanks to recent updates.
Cons:
- Potential loss of Nova chain users. The chain’s TVL is only $700,934 (according to DeFiLlama), which is very low, and transaction fees are already so minimal that most users may not even notice any changes
Considering Nova’s substantial operational costs, it seems clear that ending the subsidies is the right decision