The wait for one of the most highly anticipated events of the past few months in the cryptocurrency industry is finally over with the announcement of the long-awaited ARB token.
The news means Arbitrum, one of the biggest players in the Ethereum layer-2 scaling solution landscape, will finally receive the token.
ARB token airdrop date set
The Arbitrum Foundation announced Thursday that it will be broadcasting ARB, Arbitrum’s new token, to the community on March 23. According to the foundation, the launch of the ARB token officially marks the beginning of Arbitrum’s transformation into a Decentralized Autonomous Organization (DAO). This means ARB token holders will be able to vote on key governance decisions surrounding Arbitrum One and Arbitrum Nova. Both networks allow users to conduct transactions on the Ethereum blockchain, but with much greater speed and lower fees. In a statement, the Arbitrum Foundation said,
“The Arbitrum DAO will have the power to control key decisions at the core protocol level, from how the chain’s technology is upgraded to how revenue from the chain can be used to support the ecosystem.”
Arbitrum Foundation is planning to issue 44% of tokens to investors and core contributors. However, Arbitrum’s creator Offchain Labs believes that the ARB token will make Arbitrum more decentralized than other competing chains. CEO of Offchain Labs, Steven Goldfeder said,
“For me, the most exciting aspect is decentralization – the fact that Offchain Labs will no longer have any control over the future of this chain. We will be a service provider, and if the DAO calls us to build software, we will.
According to Goldfeder, decision Worked closely with crypto analytics firm Nansen to create snapshots of user activity. This was done to determine which users are eligible to receive ARB tokens. Factors taken into consideration are number of transactions conducted, number of applications used and how long the user has been using Arbitrum One and Arbitrum Nitro.
Users can go and check their eligibility to claim ARB tokens during the airdrop gov.arbitrum.foundation. However, Arbitrum has also warned users to be careful when claiming their tokens. This is because hackers and scammers frequently use airdrops for phishing by sending people to fake websites.
According to available details, ARB tokens will have a supply of 10 billion, of which 56 percent will be controlled by the community. The March 23 airdrop will see 11.5% of the total supply decision users and 1.1% to DAOs operating in the Arbitrum ecosystem. The rest of the community tokens will be sent to a treasury that will be controlled by the new Arbitrum DAO. The remaining 44% will go to investors and employees associated with Offchain Labs.
The ARB token, unlike ETH, will only be used for governance of the protocol. The Arbitrum DAO will facilitate a self-executing governance process, meaning votes can be used to directly change the Arbitrum’s core code.
But why now?
currently, decision Its Ethereum rollup network, Arbitrum One, holds about $3.69 billion locked up, making it the clear market leader. However, this project is one of the largest crypto projects without a token, meaning that the community has been demanding tokens since the project went live in 2021. Arbitrum’s primary competitor, OptimismLaunched its OP token about a year ago and successfully transitioned to DAO governance.
Explaining the delay in launching its own token, Goldfeder said,
“Technology came first. And based on our technology roadmap, now was the right time.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.