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    Voting Power Within the Arbitrum DAO

    This analysis examines the distribution of voting power within the Arbitrum DAO and identifies patterns in on-chain activities of users who delegate their voting power. Using the Flipside Crypto app, the analysis calculates metrics, creates visualizations, and provides insights into the top delegates and their delegators. It is part of the MetricsDAO bounty program and provides valuable information for understanding the DAO's governance.

    What is Arbitrum?

    Arbitrum is a layer-2 scaling solution for Ethereum that aims to increase transaction throughput and reduce gas fees by enabling off-chain computation of smart contracts [1]. It uses a rollup mechanism where smart contract logic is executed off-chain, and a summary of the computation is submitted to the Ethereum mainnet for verification [2].

    Arbitrum is built on top of Ethereum and is compatible with the Ethereum Virtual Machine (EVM), allowing developers to use the same tools and programming languages they are already familiar with [1]. It also provides fast finality, meaning that once a transaction is included in an Arbitrum block, it is considered final and irreversible [3].

    One of the key advantages of Arbitrum is its ability to support both ERC-20 and ERC-721 tokens, which are the two most widely used token standards on Ethereum [4]. This makes it easy for developers to migrate their existing dApps to Arbitrum and take advantage of its scalability benefits.

    References:
    [1] "What is Arbitrum?" Offchain Labs.
    [2] "What is Arbitrum Rollup?" ConsenSys.
    [3] "Arbitrum One FAQ." Arbitrum.
    [4] "Arbitrum - The Internet of Agreements." Chainstack.
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    Methodology

    The goal of this analysis is to determine the number of unique wallets that have delegated their ARB tokens and the number of unique delegates that have received tokens. Additionally, a dashboard that monitors the total voting power and number of unique delegators for the top 50 delegates is required. The top 10 delegators (by total ARB) for each delegate in the top 50 must also be identified. Furthermore, on-chain activities of wallets that have chosen to delegate their voting power must be examined to identify any patterns. The analysis aims to determine whether it is possible to identify which user segments are more likely to delegate tokens based on transaction histories.

    For this analysis, the Flipside Crypto app for MetricsDAO was used to calculate the total overall activities, including Delegated Volume, Average Delegated Volume, Maximum Delegated Volume, Minimum Delegated Volume, and the Number of Delegators. Additionally, the Delegated Volume on the own node and Delegated Volume on third-party node were computed. Visualizations were created for the ARB Delegate Table, which was ordered by delegated volume, and included Delegated Volume, Average Delegated Volume, Maximum Delegated Volume, Minimum Delegated Volume, and Number of Delegators. A donut chart was also created for this table.

    The analysis also included the following charts: Top ARB Delegates with the highest Delegated Volume, Top ARB Delegates with the highest Number of Delegators, and daily chats of Number of Transactions, Cumulative Number of Transactions, Number of Delegators, Total Gas Fee (ETH), and Average Gas Fee (ETH). By analyzing these charts, it is possible to gain insights into the consolidation of voting power within the Arbitrum DAO and the patterns of users who are more likely to delegate tokens.