Every Layer 2 chain built with Arbitrum’s technology that settles outside of Arbitrum One or Nova will now kick back 10% of its net protocol revenue to the Arbitrum ecosystem. That includes Robinhood Chain, which just launched its own Ethereum L2 using the Arbitrum tech stack.
The split works out to 8% flowing into the Arbitrum DAO treasury and 2% going to the Arbitrum Developer Guild.
How the Arbitrum Expansion Program works
The revenue-sharing arrangement falls under what Offchain Labs calls the Arbitrum Expansion Program, or AEP. It applies specifically to chains that leverage Arbitrum’s tech stack but settle transactions on blockchains other than Arbitrum One or Nova.
The revenue subject to sharing comes from sequencer profits, the fees generated by the entity responsible for ordering and processing transactions on the chain. If a chain adopts Timeboost, Arbitrum’s mechanism for capturing maximal extractable value (MEV), those revenues could also fall under the sharing arrangement.
