Arbitrum DAO proposes $4.25 million in ETH treasury transfers

Arbitrum DAO is weighing a proposal on the Arbitrum Foundation Forum to move 1,700 ETH out of its treasury — split between the Arbitrum Developer Guild (ADG) and the TM Portfolio. Entropy’s proposal carves out 82.51 ETH as what the ADG is owed and routes the remaining approximately 1,600 ETH toward treasury-management strategies.

At $2,501.97 per ETH, the full transfer comes to roughly $4.25 million (1,700 × $2,501.97 = $4,253,349). That price, sourced from CoinGecko, was down 1.2% over the prior 24 hours, so the dollar figure moves with the asset.

Forum discussion goes from October 8 through October 15. Offchain voting follows, October 15 through October 22. If that clears, onchain voting opens October 29 and closes November 12 — after which the proposal calls for the ADG to receive its owed ETH and the remainder to transfer to the TM portfolio.

Where the 1,700 ETH goes

The 82.51 ETH payment traces back to the earlier adoption of Timeboost, which stipulates that 3% of ETH revenue from the transaction-ordering mechanism goes to the ADG. Timeboost’s lifetime revenue is listed in the forum proposal at 2,750.42 ETH, and the math checks out: 82.51 ÷ 2,750.42 × 100 = 3.00%. The proposal notes the treasury currently holds approximately 83 ETH owed to the ADG; the 82.51 ETH figure is the precise amount to be moved.

The larger slice — approximately 1,600 ETH, a rounded figure; 1,700 minus 82.51 equals 1,617.49 ETH, so the proposal’s stated amounts do not reconcile exactly — goes to the TM portfolio to reinitiate its covered-call strategy and grow the portfolio’s ETH holdings. The ATMC, which manages the treasury strategy, claims to have generated almost 600 ETH to date by putting idle ETH to work, according to the forum proposal. The proposal states its blended 30-day moving-average APY has ranged between roughly 2% and 7%.

The proposal puts the cost of leaving 1,600 ETH idle at roughly $100,000 per year, using its benchmark rate as the opportunity cost. Separately, it gives an ETH-denominated figure: at a conservative yield of around 2.3%, the proposal calculates the DAO foregoes approximately 40 ETH annually by not deploying those funds.

Scale relative to the treasury strategy

ETH currently represents approximately 37% of the TM portfolio. The proposal claims that if the transfer passes — calculated at an assumed ETH price of $2,700 — that share rises to roughly 39%, against a long-term composition target of 30%. The proposal acknowledges that a 30% drop in ETH’s price, to around $1,750, would push the asset class back below that 30% target. The $2,700 assumption in the 39% calculation sits above CoinGecko’s current $2,501.97.

Measured against Timeboost revenue, the proposed 1,700 ETH represents about 61.8% of the 2,750.42 ETH generated to date. The 1,600 ETH TM allocation alone accounts for about 58.2% of that base. That comparison describes the scale of this single treasury deployment against the revenue stream cited in the forum proposal.

If the vote passes, 82.51 ETH settles the ADG’s stated Timeboost entitlement, and the ATMC would manage the remaining approximately 1,600 ETH under the proposed strategy. The DAO’s stated cost of doing nothing: roughly 40 ETH a year in foregone yield.