Proposal: Distribution of DAO Revenue to ARB Token Holders

Proposals
41

I support this proposal.

42

yes i agree[quote=“PSY, post:1, topic:14412, full:true”]
Proposal: Distribution of DAO Revenue to ARB Token Holders

Objective: To distribute a portion of the accumulated revenue from the Arbitrum DAO to ARB token holders. This will align community incentives and give ARB a purpose beyond a “worthless governance token”.

Details:

  • As stated in recent tweets from Arbitrum, the DAO has accumulated ~3,352 ETH in revenue from L2 base and surplus fees.
  • The distribution of revenue will be proportional to the amount of ARB tokens delegated by each holder.
  • The distribution can be triggered periodically in the future to ensure timely rewards for the community.

Benefits:

  • Distributing DAO revenue to ARB token holders will align community incentives and create a more engaged and committed user base.
  • This proposal will give ARB a purpose beyond a “worthless governance token”, as token holders will have a direct financial stake in the success of the network.

Implementation:

  • The Arbitrum team will need to create a mechanism for distributing the revenue.
  • The distribution can be triggered periodically by a smart contract to ensure timely and fair rewards for the community. ARB holders will need to claim.
  • The community will need to be informed of the distribution mechanism and timeline to ensure transparency.
  • Only delegated ARB tokens will be eligible to receive the revenue distribution.

Conclusion:

Distributing DAO revenue to ARB token holders is a logical next step for the network, as it aligns community incentives and gives ARB a purpose beyond a “worthless governance token”. This initiative sets Arbitrum apart from other ecosystems and showcases our commitment to creating a more equitable and prosperous network for all.
[/quote]
yes i agree[quote=“PSY, post:1, topic:14412, full:true”]
Proposal: Distribution of DAO Revenue to ARB Token Holders

Objective: To distribute a portion of the accumulated revenue from the Arbitrum DAO to ARB token holders. This will align community incentives and give ARB a purpose beyond a “worthless governance token”.

Details:

  • As stated in recent tweets from Arbitrum, the DAO has accumulated ~3,352 ETH in revenue from L2 base and surplus fees.
  • The distribution of revenue will be proportional to the amount of ARB tokens delegated by each holder.
  • The distribution can be triggered periodically in the future to ensure timely rewards for the community.

Benefits:

  • Distributing DAO revenue to ARB token holders will align community incentives and create a more engaged and committed user base.
  • This proposal will give ARB a purpose beyond a “worthless governance token”, as token holders will have a direct financial stake in the success of the network.

Implementation:

  • The Arbitrum team will need to create a mechanism for distributing the revenue.
  • The distribution can be triggered periodically by a smart contract to ensure timely and fair rewards for the community. ARB holders will need to claim.
  • The community will need to be informed of the distribution mechanism and timeline to ensure transparency.
  • Only delegated ARB tokens will be eligible to receive the revenue distribution.

Conclusion:

Distributing DAO revenue to ARB token holders is a logical next step for the network, as it aligns community incentives and gives ARB a purpose beyond a “worthless governance token”. This initiative sets Arbitrum apart from other ecosystems and showcases our commitment to creating a more equitable and prosperous network for all.
[/quote]

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43

Even though this sounds tempting, I don’t think it would be a good idea considering the current regulatory landscape. As mentioned previously this could easily turn ARB into a security and bar American citizens from participating in Arbitrum’s governance, which could have more downside than whatever value we could get from this revenue-sharing incentive.

Arbitrum team already runs a centralised sequencer and doesn’t comply with AML or any other law that most probably applies.

Even if this was real, that doesn’t mean that the DAO shouldn’t be compliant.

Why should a DAO/chain act in the interest of 1 countries regulation anyway?

It’s not just the US, they are simply the ones that are more aggressive about it, but multiple countries have similar securities laws based on similar precedents to Howey, so we have to think in the long term. Anyways, it wouldn’t be fair to bar US citizens from governance either.

yeah lets reward people that create the best value!.. with the massive ARB treasury balance we have.

There are other ways to reward people that create the best value, which is why we have a grants program.

I would really support doing something like this, but it just doesn’t seem feasible considering the legal risk involved. We have to acknowledge that we don’t exist in a legal vacuum. Hopefully regulations might be more relaxed in the future and then we could do something like this, but for now, I would reconsider it.

This is my personal opinion and not that of Seed Latam

9 Likes
44

Good snew, ARB to the moon soon

45

I agree,this is a good thing, it makes those who hold arb tokens more confident and motivated.

46

I support this proposal

1 Like
47

Maybe we take this into two stages:

  1. Distribute the revenue to the ecosystem, especially for new projects, to make sure Arbitrum is so competitive that no others can challenge, both L2s and L1s.
  2. When Arbitrum is good enough, we can distribute the revenue to ARB token holders.
48

that’s a great offer

[image]

49

:grapes: :grapes: :grapes:支持这个提议 :grinning: :giraffe: :dromedary_camel:奖励 ARB 持有者的完美机制

50

100% in agreement! If ARB has no backing value, it’s going to plummet to $0. A governance token worth $0 poses a threat to governance security.

51

отличная идея ! поддерживаю

52

While distributing to ARB holders could be a positive short term return for HODLers, over the long term this does not help the ecosystem grow! If we as a DAO want to remain competitive with a dozen or so L2s and possibly many more in the future, we must focus on ecosystem growth in these initial stages.

I suggest that this revenue goes to the DAO treasury which can be spent on growth experiments, positive governance contribution, researching and testing tokenomics and funding public goods.

6 Likes
53

Totally agree it! Let $ARB Empower. Because we are number one, we have the strongest community and ecology, so please accept this offer and make the ecology stronger!

54

I suggest that this revenue goes to the DAO treasury which can be spent on growth experiments

We have $3.9 billion in the treasury already we aren’t struggling for funds

we have the power to change where the revenue is directed if its needed

While distributing to ARB holders could be a positive short term return for HODLers, over the long term this does not help the ecosystem

Id argue its the opposite, short term the revenue is very low but long terms it connects the success of the chain to the value of ARB. If the chain is successful it increases the value of our treasury

55

I support this proposal.

56

I think the answer here is simple:

It’s illegal.

In many places too, not just the USA. It turns the token into security.

From a practical point of view, I think the monetization of the token would lead to unexpected and undesirable secondary effects. Organizations would accumulate tokens with the desire to maximize their extraction from the system. Short term thinking would minimize investment to R&D, expansion, building more stuff, and instead maximize extraction. The organization would fall prey to nefarious actors which would scare aware large scale infrastructure projects that would seek to build on Arbitrum, thus reducing the long term value proposition of Arbitrum for teams, and accelerate short term extraction.

I would suggest the revenue be directed to multiple grants programs and multiple Arb aligned organizations that drive value to the ecosystem.

Might be interesting to stake the eth as well!

4 Likes
57

我支持这个提议

> Blockquote

58

100% agree. I dont’t see any reason to against this proposal. Let’s vote.

59

It’s illegal.

everything about arbitrum is already illegal

  • centralised sequencer doesn’t do AML
  • centralised bridge doesn’t do KYC
  • {insert 100 other broken laws}

Whether something does or doesn’t pay a dividend is not the deciding factor for what is a security otherwise amazon stock and all non dividend paying stocks would not be considered one but they are. We already qualify as an illegally unregistered security, the fact we are even able to vote on having revenue paid to token holders is enough to close the case.

From a practical point of view, I think the monetization of the token would lead to unexpected and undesirable secondary effects. Organizations would accumulate tokens with the desire to maximize their extraction from the system. Short term thinking would minimize investment to R&D, expansion, building more stuff, and instead maximize extraction. The organization would fall prey to nefarious actors which would scare aware large scale infrastructure projects that would seek to build on Arbitrum, thus reducing the long term value proposition of Arbitrum for teams, and accelerate short term extraction.

Our main source of funds for funding projects in the ecosystem is the ARB treasury, it will take many years for revenue to even come close to the current $ value in ARB tokens we control.

That ARB only has value if we put value back into it and give investors a reason to invest in the project. If buyers stop buying ARB we have a treasury value of $0. You can’t reasonable expect (over the long term) the market to highly value a socialist project that only gives out money to people for no financial return.

1 Like
60

(note: opinions are my own I don’t represent anyone in this discussion other than myself)

  1. Reframing Token Holders: It’s essential to note that ARB token holders should not be viewed as ‘investors’ but rather as ‘governance participants’. The airdrop was not a sale, the tokens were given to folks the Arbitrum team hoped would participate in governing. The primary role of these token holders is to participate in the decision-making processes that guide the development and direction of the Arbitrum project. By participating in governance, they contribute to the network’s growth and resilience, rather than expecting a traditional financial return.

  2. Long-term Value and Credibly Neutral Infrastructure: The intrinsic value of the ARB token isn’t derived from monetary returns. Rather, its long-term value is tied to the success of the Arbitrum ecosystem as a whole. This includes ensuring that hyperscale projects which build on Arbitrum have a credibly neutral layer to solve their infrastructure challenges in the future. This neutrality and robustness of infrastructure will attract a diverse range of projects, thereby increasing the utility and, consequently, the non-monetary value of the ARB token. Long term the folks who seek to purchase ARB are more aligned if they are purchasing ARB to increase their voice in the Governance. This governance will be critically important to institutions building on Arbitrum who want to be sure they have a say in the operation of their infrastructure level. If someone builds a multi-billion dollar ecosystem on Arbitrum, it will be a necessity for them to hold a large amount of ARB to ensure that they can trust the neutrality of the infrastructure.

  3. Sustainable Treasury Management: While it’s true that the ARB treasury is a significant source of funding for projects in the ecosystem, the notion that its value would drop to zero if buyers stop purchasing ARB might be an overstatement. The treasury’s value is not solely dependent on the token’s market price, but also on the overall health and success of the ecosystem, which would continue to attract new participants and sustain demand for the token.

Additionally, while the DAO owns several billion in ARB token, the sequencer revenue, ETH, is still far more liquid. In many ways it probably makes more sense for the DAO to spend the ETH rather than the ARB. Sales in ETH wont’ affect the ARB price, while large sales of ARB would.

7 Likes