--- title: "ArbitrumDAO Proposes 100M ARB Push to Adopt Paxos's USDG Stablecoin" description: "A joint governance proposal would expand the DRIP program by 100 million ARB and convert network fees into Paxos's USDG stablecoin." url: https://basisdesk.news/news/arbitrumdao-proposes-100m-arb-usdg-paxos published: 2026-10-12T09:06:41.477Z modified: 2026-10-12T09:06:41.477Z section: Stablecoins & Payments author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: bullish tickers: [ARB, USDG, ETH] tags: [arbitrum, paxos, usdg, stablecoins, governance, defi] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # ArbitrumDAO Proposes 100M ARB Push to Adopt Paxos's USDG Stablecoin A joint governance proposal would expand the DRIP program by 100 million ARB and convert network fees into Paxos's USDG stablecoin. ## At a glance - **What happened:** ArbitrumDAO entities proposed expanding the DRIP program by 100M ARB to adopt Paxos-issued USDG as a strategic network asset. - **Why it matters:** The integration aims to diversify Arbitrum's volatile ETH fee income into predictable dollar-denominated revenue. - **Who is affected:** Arbitrum ecosystem developers, ARB token holders, and ArbitrumDAO delegates. - **What's next:** ArbitrumDAO delegates will debate the non-constitutional proposal before it moves to an onchain vote. - **Status:** proposed - **Primary source:** [Adopting USDG as a Core Strategic Initiative for the ArbitrumDAO](https://forum.arbitrum.foundation/t/adopting-usdg-as-a-core-strategic-initiative-for-the-arbitrumdao/31548) — forum.arbitrum.foundation ## Key points - Entropy Advisors proposed integrating Paxos-issued USDG into ArbitrumDAO's core strategy, backed by a 100M ARB budget increase [1]. - USDG has around $3.2B in circulating supply across multiple chains and is backed by the 150-partner Global Dollar Network [1]. - The initiative directs network fees net of developer allocations to be converted directly into USDG to generate non-volatile DAO income [1]. ## Editorial remark - **Context:** Arbitrum One holds over $4 billion in aggregate stablecoins, but layer-2 networks increasingly compete to capture stablecoin yields and incentivize liquidity [1]. - **Impact:** If approved, Arbitrum builders gain access to shared stablecoin economic incentives, while the DAO builds a predictable, non-ETH revenue stream via the Global Dollar Network [1]. - **Watch:** An upcoming onchain vote by ArbitrumDAO delegates will determine if the 100M ARB transfer and DRIP mandate expansion are executed [1]. ArbitrumDAO received a governance proposal on Oct. 12 to establish Paxos's Global Dollar Network ($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]. ## FAQ **What is the Global Dollar Network (GDN)?** The Global Dollar Network is a stablecoin consortium backing USDG, an open network where rewards accrue to partners based on the USDG they mint, hold, and integrate. **How will the ArbitrumDAO treasury acquire USDG?** The DAO plans to route Arbitrum Expansion Program fees, after deducting 20% for developer guilds, into its treasury portfolio for conversion into USDG. ## Sources 1. [Adopting USDG as a Core Strategic Initiative for the ArbitrumDAO](https://forum.arbitrum.foundation/t/adopting-usdg-as-a-core-strategic-initiative-for-the-arbitrumdao/31548) — forum.arbitrum.foundation, 2026-10-12 2. [Paradigm Frontiers 2026](https://www.paradigm.xyz/frontiers-2026) — paradigm.xyz, 2026-10-12 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai