[Non-Emergency Action] Fix Fee Oversight ArbOS v20 “Atlas”
AI summary
This proposal asks the Arbitrum DAO to approve changes to how transaction fees are calculated on the Arbitrum One network. Specifically, it suggests reducing the 'L1 surplus fee' from 32 gwei to 0 and the 'L2 minimum base fee' from 0.1 gwei to 0.01 gwei. These changes are intended to align Arbitrum One's fee structure with the upcoming Ethereum Dencun upgrade and match the fee model already used by Arbitrum Nova, aiming to lower costs for users.
If passed, users on Arbitrum One will likely experience lower transaction fees, making the network more competitive. However, the Arbitrum DAO's revenue from transaction fees is projected to decrease significantly, from approximately 816 ETH to 79 ETH per month based on past activity. This could impact the DAO's ability to fund future initiatives, though proponents argue lower fees could attract more users and transactions in the long run.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Request Non-Emergency Security Council Action Abstract The transaction fee paid by users is composed of two parts, L2 fees and L1 fees, which together include the execution cost for running the transaction on Arbitrum alongside the cost of posting data to Ethereum (to learn more about this, read the deep dive on the subject 1).
Historically, the rollup fee market has been dominated by the L1 cost component. With the Dencun upgrade soon being enabled on Ethereum, the current pricing structure may no longer be optimal. The ArbOS Version 20 “Atlas” upgrade is a step towards better consuming the …