Arbitrum, one of the leading layer 2 blockchain solutions built on Ethereum, has distributed tokens to eligible DAOs within its ecosystem. As reported by AZCoin News, Arbitrum developers have allocated 1.13% of the total initial supply of 10 billion tokens, equivalent to 113 million ARB (about $149 million), to qualifying DAOs based on deployment date, scale, TVL, volume, and transaction value.
This allocation to DAOs is separate from the 11.6% of total tokens previously distributed via airdrop to early Arbitrum users on March 16th.
The full distribution of the DAO airdrop will take place today with those that have confirmed receiving the test transaction that was sent earlier last week.
For more details on the DAO distribution, please read the thread below. 🧵👇 https://t.co/naApiR7uT2
— Arbitrum (💙,🧡) (@arbitrum) April 24, 2023
According to data from ArbiScan on April 25th, the Arbitrum Foundation, the project’s operating team, has transferred a significant amount of ARB tokens to 125 DAO addresses. The project has stated that this distribution is not a sponsorship and the tokens are not being used for voting on current proposals. Instead, it is an airdrop to DAO-operated projects to help increase the value of the Arbitrum network.
The projects receiving ARB tokens include GMX, TreasureDAO, SushiSwap, Uniswap, Aave, Hop Protocol, Radiant Capital, Balancer, Gains Network, Synapse, MakerDAO, Vesta, Curve, Layer Zero, 1inch, Swapr, and many others.
The amount of ARB allocated to DAOs could help boost activity on the Arbitrum network. These allocations will be used as part of the project’s treasury or for other purposes, depending on their community through voting proposals.
While the Arbitrum team continues to support DAOs in its ecosystem, this layer 2 blockchain has undergone some controversy with the community. As reported by Interlock, the AIP-1 proposal to grant control of 750 million ARB tokens to the Arbitrum Foundation faced opposition due to reports that the team spent 50 million tokens without permission.
However, in the subsequent AIP-1.1 proposal, the community agreed to move the remaining 700 million ARB tokens to a “smart contract-controlled lockup” and gradually unlock them over 4 years. Therefore, the project cannot use the tokens until the community members approve the token allocation budget. In addition, a certain amount of money will be used to support the Arbitrum Foundation’s operations in the first year.
Read more:
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