Arbitrum One batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Arbitrum One is an L2 smart contract platform for decentralized applications on Ethereum. Arbitrum was founded by Offchain Labs and launched in 2021.

ARB tokenholders own and govern the protocol. They currently run the only sequencer and take a cut of the total transaction fees paid by users (revenue). Arbitrum’s investors include Polychain, Alameda Research, Coinbase Ventures, etc.

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Arbitrum One

# Arbitrum One Supply-side fees Methodology

## 1. Overview

The share of fees that goes to the service providers is measured by the supply-side fees metric. For Arbitrum One, this metric is set to zero. All transaction fees, Timeboost auction fees, and Arbitrum Expansion Program fees collected on the network are either retained by the sequencer as protocol revenue or paid to Ethereum Layer 1 for data availability. Because no fees are distributed to supply-side service providers, the supply-side fee allocation is designated as zero.

## 2. Data sources

- **None**: This metric is set to a constant value and does not consume blockchain events

## 3. Step-by-step calculation

### Component A: Supply-side fee allocation

- **Purpose**: The supply-side fee value for Arbitrum One is assigned
- **Logic**: The supply-side fee metric is hardcoded to zero. This reflects that no portion of the collected fees is distributed to supply-side participants.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Portion of fees distributed to service providers or supply-side participants.

Arbitrum OneARB

Supply-side fees

Supply-side fees

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