A new governance proposal on Arbitrum aims to overhaul how the network's sequencer revenue is distributed, directing the overwhelming majority of fees back to the DAO treasury. The so-called "Fast Feed" proposal would route 97% of sequencer revenue to the collective treasury, marking a major shift in how the Layer 2 ecosystem allocates its income stream.

If passed, the change would dramatically increase the funds available for Arbitrum's decentralized governance to deploy across grants, infrastructure, and ecosystem development. Currently, sequencer fees,paid by users for faster transaction inclusion,are partially retained by the Arbitrum Foundation. Under the Fast Feed model, nearly all of that recurring revenue would flow directly into the DAO-controlled treasury rather than being managed centrally.

The proposal represents a significant move toward greater decentralization and community ownership of Arbitrum's economic engine. By routing almost all sequencer revenue to on-chain governance, ARB token holders would gain direct oversight over a growing pool of capital generated by network activity.

Supporters argue the shift aligns with Arbitrum's long-term vision of a fully community-governed rollup, while critics have raised questions about operational sustainability and whether the Foundation retains sufficient runway for ongoing development. The discussion underscores the broader tension across the L2 ecosystem between treasury autonomy and DAO control.

The proposal is now open for community feedback before moving to a formal on-chain vote. Its outcome could set a precedent for how other rollups manage sequencer revenue in relation to their DAO treasuries.