Arbitrum has submitted a new governance proposal to request additional operating funds for the Arbitrum Foundation through 2027. Despite continued growth in network transactions, stablecoins, and RWA, the DAO’s current revenues still fall short of covering ecosystem expenditures, reigniting discussions around Layer 2 self-sufficiency.
Apply for funding coverage through 2027
The proposed funding includes $16 million in RWA and stablecoins, 1,740 ETH, and 230 million ARB. The foundation stated that these funds will be used for technology infrastructure, ecosystem growth, strategic partnerships, governance operations, and ecosystem development coordination.
DAO income still lags behind expenses.
The document shows that Arbitrum generated approximately $23.49 million in gross revenue in 2025 through transaction fees, Timeboost, and the Arbitrum Expansion Program. As of February 2026, the network processed over 4.7 million daily transactions, had a stablecoin supply of $8.6 billion, and RWA assets nearing $800 million.
However, the amount of funding requested in this application still significantly exceeds the DAO’s current annual revenue capacity. Cryptocurrency analyst Ignas noted that the funding requested by the foundation is approximately 2.3 times the DAO’s disclosed annual revenue, prompting the market to reassess the pace at which Layer 2 projects are transitioning from treasury support to financial self-sufficiency.
Technical costs make up the bulk of operational expenses.
The proposal indicates that technology-related expenses are expected to account for approximately 54% of operating costs in 2027. These costs include infrastructure, custody, security, auditing, development tools, block explorers, and external technical support required to maintain network operations.
The foundation expects technology costs to be approximately $14.8 million in 2027. The proposal also states that, despite increased network activity, Arbitrum has reduced certain marketing expenses and optimized infrastructure costs.
The foundation stated that the expenses were used for long-term expansion.
The foundation states in the proposal that the Arbitrum ecosystem has established a revenue cycle: ecosystem growth drives network activity, increased network activity boosts DAO revenue, and that revenue is reinvested into further expansion. The proposal defines the foundation as a cost center operating on behalf of the DAO, while protocol revenues flow directly into the treasury.
Arbitrum states that its long-term goal remains expanding sustainable revenue streams, including transaction fees, Timeboost, RWA, and new ecosystem initiatives. The core of the current debate is not whether growth exists, but that revenue release has not yet caught up with the costs of ecosystem development and technical maintenance.