Big news Arbinauts!

Arbitrum is the only rollup that sends all surplus revenue generated by transaction fees to their respective DAO and it is time for the DAO to collect the funds so far!

Follow along to learn more about it.🧵👇

All users on Arbitrum One pay a fee when transacting on the network. The fee is split into two components:
1. L1 fee to pay for costs on Ethereum.
2. L2 fee to pay for costs on Arbitrum.

Surplus L1 fees and all L2 fees accumulate on-chain before it is sent to the DAO.

The L1 fees purpose is to cover the cost of posting the transaction’s data onto the Ethereum blockchain, but it cannot perform that payment immediately.

The Sequencer must front the financial cost of posting the data onto Ethereum & later recoup it from the accumulated L1 fees.

As a result, a large portion of the L1 fee is reserved for the Sequencer.

The accumulated ETH for the Sequencer’s refund can be found here:
arbiscan.io/address/0xE6ec2174539a849f9f3ec973C66b333eD08C0c18
At present, the refund is around 5,954 ETH.

All remaining funds from the L1 fee is considered a surplus and it is accumulated elsewhere:

arbiscan.io/address/0x2E041280627800801E90E9Ac83532fadb6cAd99A

The accumulated L1 surplus around ~582 ETH and it can be collected by the DAO.

Let’s dive into the L2 fee.

It covers the cost of using resources on Arbitrum and it has two components:

A min base fee that all transactions pay,
A surplus base fee which is anything above the base fee.

Both fees accumulate in separate smart contracts.

Let’s take a look at the L2 base fee:

arbiscan.io/address/0xbF5041Fc07E1c866D15c749156657B8eEd0fb649

The base fee has accumulated ~1,308 ETH and it can be collected by the DAO.

Now, let’s take a look at the L2 surplus fee:

arbiscan.io/address/0x32e7AF5A8151934F3787d0cD59EB6EDd0a736b1d

The surplus fee has accumulated ~1,462 ETH and it can be collected by the DAO.

In total:

The Arbitrum DAO has accumulated ~3,352 ETH in revenue,
The Sequencer will be refunded ~5,954 ETH which is the cost for posting all data to the Ethereum network.

How exciting is that?

Finally, there is one final step as someone needs to trigger the smart contracts and distribute the rewards to the DAO (alongside refunding the Sequencer).

We will trigger it soon, and periodically in the future, to ensure the rewards are distributed in a timely manner.

💙🧡👀