Arbitrum Treasury Transfer: 85.1 ETH To Guild, 1,614.9 To Portfolio

Arbitrum's DAO is voting on a request to move 1,700 ETH out of its treasury. The Arbitrum treasury transfer is one vote with two parts. It sends 85.1 ETH to the Arbitrum Developer Guild and 1,614.9 ETH to the DAO's treasury portfolio. At the Binance price of about $2,411, that adds up to roughly $4.1 million. That figure is our arithmetic, not the proposal's.

Where the Arbitrum treasury transfer comes from

The ETH sits in the DAO treasury today. According to the proposal from Entropy Advisors, it accrued from sequencer revenue, Timeboost and priority gas auctions, known as PGA. Timeboost has made about 2,750 ETH over its lifetime and PGA about 87 ETH.

Earlier DAO votes set aside 3% of that ordering revenue for the Developer Guild. The proposal says none of it has been paid so far, because the revenue went straight to the treasury. Three percent of both streams comes to the 85.1 ETH, split as 82.5 for Timeboost and 2.6 for PGA.

The summary section of the proposal on the Arbitrum forum. Source: Arbitrum governance forum.

What the 1,614.9 ETH would do

The remainder goes to the treasury portfolio run by the ATMC. The authors say it would help restart a covered call strategy, which they describe as a strong source of past returns. They also say about 1,600 ETH sits idle, at an annual cost near $100,000 against a benchmark rate.

ETH makes up about 37% of the portfolio, and the proposal says that would rise to about 39% if the vote passes. Both figures assume ETH at $2,700. The Binance price now is around $2,411, so the real share today may differ. The proposal also says the ATMC has earned almost 600 ETH so far from idle treasury ETH. It puts the yield between roughly 2% and 7%.

The Snapshot vote and the pushback

Snapshot shows about 23.8 million ARB for the Arbitrum treasury transfer and about 245,200 against, from 540 voters. The window opened on the evening of October 15 and runs until 20:00 UTC on October 22. An onchain vote is planned for October 29 to November 12.

The Snapshot results panel, with times shown in East Africa Time. Source: Snapshot.

On the forum, a delegate posting as cp0x said on October 18 that they voted against the portfolio part. The thread opened on October 8 and drew five replies. They back the guild payment but want the two items voted on separately. They say the proposal does not reconcile today's ETH weight with a March projection of about 47%. They also say it does not explain how the new tranche would be deployed.

Another delegate, Arb_Junior, asked for a split on October 12 and again on October 15. Entropy wrote on October 13 that it sees no need to split the vote. It added that it is open to a split if delegates ask in the thread.

This article reports a governance vote and is not advice to buy or sell ETH or ARB.