ArbitrumDAO Proposes 100M ARB Push to Adopt Paxos's USDG Stablecoin

ArbitrumDAO received a governance proposal on Oct. 12 to establish Paxos's Global Dollar Network ($USDG) as a core strategic initiative, allocating 100 million $ARB to scale the stablecoin across the layer-2 network ¹.

Proposed by Entropy Advisors in conjunction with Offchain Labs, the Arbitrum Foundation, and OpCo, the non-constitutional framework seeks to counter competitors by offering builders native stablecoin revenue alignment ¹. Paxos issues USDG via entities supervised by the Monetary Authority of Singapore and Finland's Financial Supervisory Authority under the European Union's Markets in Crypto-Assets (MiCA) rules ¹. USDG currently accounts for approximately $3.2 billion in circulating supply across networks including Ethereum, Solana, and Ink, backed by the Global Dollar Network's consortium of over 150 enterprise participants ¹.

Treasury Diversification and Liquidity Expansion

The initiative aims to insulate the ArbitrumDAO treasury from market correlation ¹. The DAO currently relies heavily on sequencer and transaction priority fees denominated in $ETH, leaving operational income sensitive to broader crypto downturns and lower volatility ¹.

Under the proposal, ArbitrumDAO would adjust its existing Diversified Return and Incentive Program (DRIP) ¹:

• Expand DRIP's remaining budget from roughly 65 million ARB to approximately 165 million ARB by allocating an extra 100 million ARB ¹.
• Consolidate seasons two through four into a single continuous deployment phase targeting USDG growth ¹.
• Route all Arbitrum Expansion Program fees—excluding the 20% reserved for the Arbitrum Developer Guild—to the treasury management portfolio to be converted directly into USDG ¹.
• Authorize the Arbitrum Treasury Management Committee to seed protocol-owned liquidity and establish integration co-incentives ¹.

At the time of writing, ARB was trading at $0.1948, reflecting how past token price declines compressed the purchasing power of the initial 80 million ARB DRIP allocation approved when token values were higher ¹. The proposal will require delegate approval through an onchain vote before taking effect ¹.