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 Token incentives Methodology

## 1. Overview

The value of native assets distributed to supply-side or demand-side users, core contributors, and investors is measured by token incentives. This metric is utilized to analyze the cost of user acquisition and is considered analogous to stock-based compensation in traditional finance. For Arbitrum One, token incentives are set to zero. Programmatic, ongoing native asset distributions are not deployed by the core protocol to incentivize network participants.

## 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: Token incentives valuation

- **Purpose**: The daily value of programmatic token incentives distributed by the protocol is established.
- **Logic**: The daily value of token incentives is set to a constant value of zero. This is done to reflect the absence of ongoing, programmatic native asset distributions to users or liquidity providers within the core protocol architecture.

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

Value of native tokens distributed as incentives.

Arbitrum OneARB

Token incentives

Token incentives

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