Arbitrum Moves to Restart a Covered-Call Strategy on 1,714 ETH From Its Treasury

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• A proposal would transfer approximately 1,714 ETH drawn from Arbitrum’s sequencer revenue to help restart a covered-call options strategy that had lapsed
• A separate 86 ETH, sourced from Timeboost and priority gas auction revenue, would go to the Arbitrum Developer Guild, continuing an existing arrangement that directs 3% of that revenue stream to the guild
• The total transfer amount rose from an originally proposed 1,700 ETH to about 1,800 ETH to reflect additional ETH that accrued in the treasury since an earlier off-chain vote on the plan

Among the active on-chain votes listed in Arbitrum’s November 2, 2026 governance roundup is a proposal to transfer roughly 1,800 ETH out of the DAO’s treasury, split between two distinct purposes. The larger portion, approximately 1,714 ETH, is drawn from revenue generated by Arbitrum’s sequencer and is earmarked to help restart a covered-call options strategy that the treasury management committee had previously run but which had lapsed.

A covered-call strategy typically involves holding an underlying asset, in this case ether, while selling call options against it to generate additional income from option premiums, accepting a cap on potential upside in exchange for that steady premium income. Restarting the strategy with a fresh allocation of sequencer-revenue ETH suggests Arbitrum’s treasury managers see value in resuming that income-generating approach after a pause. Treasury management committees at other large DAOs have adopted similar options-based strategies on their own native or treasury assets, treating premium income as a steadier complement to simply holding a volatile asset outright and waiting for price appreciation alone.

The smaller portion of the transfer, about 86 ETH, comes from a different revenue source: Timeboost and priority gas auction mechanisms, both of which are transaction-ordering features on Arbitrum that generate their own separate revenue streams. This 86 ETH allocation continues an existing governance arrangement under which 3% of ETH revenue from these ordering mechanisms is directed to the Arbitrum Developer Guild, a body that funds developer-focused initiatives within the ecosystem.

The proposal notes that the overall transfer amount grew from an originally proposed 1,700 ETH to roughly 1,800 ETH specifically to account for additional ETH that had continued accruing in the treasury from these revenue sources in the time since an earlier off-chain vote approved the underlying plan, a routine true-up rather than a change in the proposal’s substance.

Voting on the on-chain proposal runs through November 12, 2026. The full roundup of Arbitrum’s active votes is posted on the DAO’s own governance forum.