Increasing the Minimum Base Fee in the Arbitrum Protocol
In our recent analysis of the current fee landscape within the Arbitrum network and its competitors, we identified that the DAO might benefit from an adjustment in the minimum base fee of the protocol. This adjustment has the potential to significantly increase revenue, potentially bringing in hundreds of additional ETH per month to the DAO’s treasury.
We propose forming a working group dedicated to examining and creating this proposal. Specifically, we would like to call on the ARDC member Chaos Labs to join us in this effort. The aim is to develop a detailed and executable proposal that can be swiftly implemented to maximize the benefits for the DAO while minimizing the potential pitfalls of higher fees. We would like Chaos to help with backtesting the potential impact to network use at different minimum base fee parameters (0.02 through 0.1 gwei) and giving suggestions.
Reasoning
- Revenue Increase: By adjusting the minimum base fee variable, the DAO could increase its monthly revenue by hundreds of ETH.
- Timely Execution: Delays in addressing this issue could result in substantial missed revenue opportunities. The DAO is on tracks to spend 10s of million of ARB to incentivize activity over the coming months.
- Expertise: Involving Chaos Labs and the ARDC will ensure that the proposal is developed with the necessary expertise and precision, reducing the potential to negatively impact the ecosystem.
We urge the ARDC and Chaos Labs to collaborate with us in this initiative. The goal is to expedite the process and present a robust proposal to the DAO as soon as possible.