Arbitrum, the leading Ethereum layer 2 scaling solution, is finally launching its much-awaited token, ARB. The announcement was made on Thursday by the Arbitrum Foundation, stating that the token would be airdropped to community members on March 23.
The introduction of the ARB token is a significant milestone in the evolution of the Arbitrum ecosystem as it marks the network’s transition into a decentralized autonomous organization (DAO). With the launch of the token, ARB holders will be empowered to vote on key decisions that govern Arbitrum One and Arbitrum Nova networks. These networks offer users faster transactions and lower fees on the Ethereum blockchain, making it an ideal solution for DeFi applications.
In a statement, the Arbitrum Foundation said, “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 the revenue from the chain can be used to support the ecosystem.” The move towards decentralization will enable the community to have a more significant say in the future development of the network.
While the Arbitrum Foundation plans to distribute a significant number of tokens to investors and core contributors, the ARB token’s introduction will make the ecosystem more decentralized than other scaling chains. The CEO of Offchain Labs, the creator of Arbitrum, Steven Goldfeder, said that the most exciting part of the token launch is the decentralization factor. “We will be a service provider, and if the DAO calls on us to build software, we will,” he said.
Eligibility, Claiming, and Delegation Process for the ARB Airdrop
To determine their eligibility for the ARB token airdrop, users can visit the Arbitrum Foundation website (here) and follow the prompts. However, they will not be able to claim their tokens until March 23. The delay between the announcement and claiming dates was intentional to allow users to delegate their tokens during the claiming process. The Foundation wants to ensure a fair and open process, in which a diverse set of community members can nominate themselves to be delegates.
Users who want to participate in governance but don’t want to actively vote on-chain can delegate their tokens to a third party. This delegation process is a way for users to have their voices represented passively in Arbitrum governance. Nevertheless, every user can vote for themselves without the need for delegation.
The Foundation encourages users to apply to become a delegate and participate in the governance process. Delegation provides an elegant way to ensure passive representation and allows community members who do not wish to vote actively to participate in the governance process.
The majority of the Arbitrum token is designated for the community, and the upcoming airdrop will immediately distribute 12.75% to the community. The Arbitrum Foundation and DAO will be tasked with distributing the additional community tokens over time.
According to the guidelines, users must have conducted transactions during at least 2, 6, or 9 distinct months, depending on the level of eligibility. Users must have also interacted with a minimum number of smart contracts or conducted a minimum number of transactions, ranging from 4 to 100 or more. Additionally, users must have conducted transactions with a minimum aggregate value, ranging from $10,000 to $250,000 or more, or deposited a minimum amount of liquidity, ranging from $10,000 to $250,000 or more.
Users who scored points before Arbitrum Nitro launched will have their scores doubled, and eligibility will be affected by Sybil detection criteria. The airdrop is scheduled for March 23, and users can check their eligibility details on the Arbitrum Foundation website.
$ARB Airdrop: Users
The ARB token will serve as the governance token for Arbitrum’s decentralized autonomous organization (DAO), which means that holders will be able to vote on key decisions governing the platform’s development and direction.
Of the ARB tokens allocated for community ownership, approximately 56% will be owned by the community, and 12.75% of that allocation will be distributed in the upcoming airdrop. However, determining the eligibility criteria for the airdrop was a complex process, given that there are hundreds of thousands of weekly users of the Arbitrum platform, and the protocol has been operational for nearly 18 months.
To ensure that the airdrop distribution is fair and inclusive, the Arbitrum Foundation and Offchain Labs worked closely with Nansen to design a point system that takes into account a variety of metrics of network usage. The system awards points for usage on both Arbitrum One and Arbitrum Nova, with early users of Arbitrum One receiving additional points for their early usage. However, points are deducted from users who engage in Sybil-linked usage patterns, ensuring that the airdrop is distributed to genuine users.
The full list of airdrop recipients and the underlying criteria and data set will be made available to the public for transparency purposes, allowing users to verify the fairness and correctness of the airdrop process. The introduction of the ARB token and the airdrop distribution represents a significant step towards decentralization and community ownership of the Arbitrum platform, ensuring that the community has a say in the platform’s development and direction.
Conclusion
The introduction of the ARB token is expected to further boost the popularity of Arbitrum, which has already become one of the most popular scaling solutions on the Ethereum network. The token’s launch will enable the community to take a more active role in the network’s development and ensure that the platform’s future development aligns with the community’s interests.
Overall, the launch of the ARB token represents a significant milestone in the evolution of Arbitrum and is expected to have a positive impact on the overall DeFi ecosystem. The ability for users to vote on key decisions governing the network’s development is a critical step towards true decentralization and community ownership of the network.
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