Thu, July 9

Arbitrum Gains New Revenue Stream as Robinhood Launches Chain Mainnet

robinhood Market News
  • Arbitrum will get 10% of net protocol income of Robinhood Chain according to Arbitrum Expansion Program revenue-sharing model.
  • Robinhood Chain helps develop Arbitrum enterprise ecosystem and expand stock tokens, DeFi solutions, and on-chain finance products.

Arbitrum has generated a new stream of revenue post-launch of the public mainnet of the Robinhood Chain using their Layer-2 blockchain technology. Co-founder of Offchain Labs, Steven Goldfeder, clarified that Robinhood Chain and other qualified Layer-2 networks using Arbitrum technology will be receiving protocol revenue. Ten percent of the protocol’s net revenue is returned to the Arbitrum ecosystem through pre-specified allocations. Steven Goldfeder said that “as enterprise adoption picks up, Arbitrum is positioned to capture revenue.” 8% goes to the treasury, and 2% will fund developer programs, he added. “100% of the fees collected on Arbitrum One will go to the Arbitrum treasury,” Goldfeder said.

According to the Arbitrum DAO factsheet, this revenue calculation is based on net protocol revenue. And, not gross fees earned by the protocol. This revenue-sharing mechanism is applicable to external chains launched under Arbitrum Expansion Program.

Chain Expansion by Robinhood

Robinhood Chain now runs inside Robinhood Wallet, where users can bridge their assets from Ethereum, Solana, Arbitrum, and other supported chains. Users can move their assets before executing swaps right from the wallet interface. Previous reports indicated that Robinhood developed the Ethereum Layer-2 chain based on Arbitrum tech for tokenized stocks, DeFi applications, and assets infrastructure.

Public testing had been done before Robinhood launched the network on the mainnet. The previous development reports revealed that the testnet conducted over four million transactions in its first week of operation. Robinhood had also identified tokenized stocks as one of the features of the blockchain. Tokenized stocks will be accessible for eligible users in over 120 countries via Robinhood Wallet and compatible decentralized exchanges.

On the other hand, Robinhood also introduced new blockchain products such as perpetual futures, decentralized lending, Stock Tokens, and other AI-driven trading features. The infrastructure partners include Uniswap, Chainlink, Alchemy, BitGo, and many more. 

The revenue-sharing model ties the success of blockchain adoption to the sustainability of the ecosystem. In addition, continued activity in the trading, lending, and tokenization platforms will be responsible for future protocol revenue generation in the Arbitrum DAO treasury.

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