How does the Arbitrum Expansion Program benefit Layer 2 chains? Every Layer 2 chain built using Arbitrum's technology, which settles transactions outside of Arbitrum One or Nova, will contribute 10% of its net protocol revenue back to the Arbitrum ecosystem. Notably, the recently launched Robinhood Chain is included in this initiative.
The revenue allocation involves an 8% share going to the Arbitrum DAO treasury, while the remaining 2% is directed to the Arbitrum Developer Guild.
What is the Arbitrum Expansion Program? This revenue-sharing plan is part of the Arbitrum Expansion Program, implemented by Offchain Labs. It specifically targets chains that utilize the Arbitrum technology stack but execute transactions on different blockchains than Arbitrum One or Nova.
The revenues eligible for sharing stem primarily from sequencer profits, which are fees earned by the entity tasked with ordering and processing transactions. Importantly, if a chain incorporates Timeboost—Arbitrum's mechanism for capturing maximal extractable value—those additional revenues become part of the sharing arrangement.
How is Robinhood Chain performing? Robinhood Chain stands as the most prominent chain leveraging this model, showing promising initial performance. In its first week of operations, it processed an astonishing 4 million transactions. Right from day one, Uniswap was among the partners integrated into the system, providing immediate decentralized finance liquidity. Initially, Robinhood launched its public testnet on February 10, 2026, before making the transition to a public mainnet. Prior to this, the company had successfully deployed tokenized US stocks and ETFs on Arbitrum One in 2025, paving the way for this advancement.
Offchain Labs co-founders, who played a significant role in supporting the development of Robinhood Chain, have highlighted the technology's potential for enterprise-level applications.
What implications does this hold for Arbitrum’s business model? The direct incentive structure created through the allocation of 8% to the DAO treasury and 2% to the Developer Guild fosters a sustainable growth model for the ecosystem. This aligns compensation with overall revenue growth, which contrasts with traditional one-time grants.
How does this affect ARB token holders? For holders of ARB tokens, the new revenue-sharing model confirms a value-accumulation strategy linked to ecosystem growth. Each new layer-2 chain utilizing the Arbitrum stack will contribute to the revenue feeding into the DAO treasury, which is collectively governed by ARB holders.
As for the competitive realm, it is crucial to note that Optimism's Superchain model shares a similar approach through its OP Stack, also monetizing revenue from chains like Base—Coinbase's Layer 2 solution. By implementing the AEP, Arbitrum aims to mitigate risks where the proliferation of Arbitrum-based chains would lead to value extraction problems, benefiting Offchain Labs at the ecosystem's expense.
Robinhood's journey—from tokenizing assets on Arbitrum One to establishing its own dedicated chain—sets a viable framework for other fintech companies. The impressive 4 million transactions in the first week signal potential traction for chains built on this model.