Robinhood Keeps 90% of Blockchain Fees with Arbitrum Deal

Robinhood has chosen to build its blockchain using Arbitrum technology, which allows it to retain about 90% of net protocol revenue after costs and revenue sharing. This is in contrast to deploying on Solana, where Robinhood would only earn application-level fees.

The decision lets Robinhood act as a 'landlord,' collecting fees from all network activity, including third-party applications, rather than just its own users. The Robinhood Chain recently recorded $6.04 million in daily fees, retaining approximately $5.44 million.

The upcoming expiration of a 90-day gas subsidy on September 29 will test whether this high revenue level is sustainable without user gas fee subsidies. This could be an important milestone for the company and its use of Arbitrum technology.