Arbitrum, a leading contender in Ethereum Layer 2 scaling solutions Recently announced the launch and airdrop of its native governance token ARB.
Since launching in 2021, the network has become one of the largest tokenless projects, with excitement and anticipation coming soon. Arbitrum is an Optimistic Rollup solution that offloads network operations from the Ethereum mainnet while still maintaining Ethereum-level security. It runs on its own blockchain, allowing developers to deploy smart contracts that can process more transactions per second, reducing overall fees.
According to the latest data from L2 Beat, Arbitrum is currently dominating the L2 wars with a 55% market share in terms of total value locked (TVL). The total value of assets locked in Arbitrum has increased by more than 20% over the past seven days to $3.85 billion, coinciding with high network activity on the network and potential upside from the scheduled airdrop.
The growth of Arbitrum’s TVL and its dominance are good indicators of its thriving ecosystem, with leading protocols like GMX, Uniswap, Camelot, and many other DEXs running on the network. Alternative Tier 2 competitors such as Optimism and Polygon have relatively low TVLs by comparison. This widespread adoption and trust from the project and the wider community is a positive sign for the growth and success of the Arbitrum ecosystem.
Along with other L2 projects such as Optimism, the launch of ARB will be a key milestone in the network’s progress towards becoming a Decentralized Autonomous Organization (DAO). Unlike other tokens such as ether Ethereum’s native token used to pay network transaction fees ARB will be used exclusively for protocol governance on Arbitrum. Prior to the announcement, Offchain Labs, the developer behind the Arbitrum ecosystem, was the sole entity responsible for making decisions and adjustments to the network. Following the announcement and upcoming token launch, control will be handed over to its community.
The network will grant holders the ability to vote on changes to the Arbitrum One and Arbitrum Nova networks. These networks allow users to transact on the Ethereum blockchain with greater speed and lower fees. The governance process implemented will be automated: voting will directly affect and enforce on-chain decisions without intermediary involvement. The voting process takes at least 21 to 37 days to pass before a proposal is implemented, ensuring users have enough time to react to any changes.
ARB Airdrop and Eligibility
The Arbitrum Foundation announced that ARB will be airdropped to eligible early community members on Thursday, March 23, 2023. Partnering with crypto analytics firm Nansen, Arbitrum monitored user behavior in February to determine eligibility for ARB tokens.
Factors that determine eligibility include:
- The number of transactions executed.
- The number of applications used.
- Time for Arbitrum One and Nitro.
According to a statement released by Nansen, of the 2.3 million wallets bridged on the Arbitrum One chain, a total of 625,142 addresses are eligible, and 28% of these addresses will be bridged to Arbitrum One by February 6, 2023.
Eligible users will be determined by internal eligibility criteria, according to Offchain Labs co-founder and CEO Steven Goldfeder. Interested users can check their air investment eligibility on the website.
