- Summary:
- The $ARB token will give holders the right to vote on Arbitrum governance and effectively means that Arbitrum is becoming a DAO.
The Ethereum Layer 2 scaling solution Arbitrum has announced that it will be airdropping the network’s governance token, $ARB, to early users. However, beneficiaries of the Arbitrum airdrop will not receive their goodies until March 23. Users may already see if they are eligible for the airdrop by visiting the official website.
Eligibility and distribution
There will be a total of 10 billion $ARB in circulation. The Arbitrum community will have access to 56% of those tokens (11.50% via distribution to the Arbitrum community and 1.10% via distribution to DAOs operating within the Arbitrum ecosystem). Offchain Labs, the company that created Arbitrum, will receive the remaining 44% of the tokens.
Token distribution will be based on a point system. Participants will require a minimum threshold of three points for participation by all users. Users can perform things like bridging funds to Arbitrum One, making transactions, and so on to earn points toward the maximum score of 15.
Arbitrum is transitioning into a DAO
By offloading the processing of computational data and then relaying validity proofs to the mainnet, Arbitrum reduces the cost of conducting transactions on the Ethereum network. According to the airdrop announcement, users have the option of giving their voting power to trusted third parties.
Decisions about the future of the Arbitrum One and Nova networks will be put to the ARB holders for a vote. Token holders’ interests are best represented by the delegates, who vote on ideas that make it via the Arbitrum DAO. The launch of $ARB heralds Arbitrum’s transition towards a fully decentralized autonomous system (DAO). Nonetheless, the Arbitrum DAO will continue to make fundamental protocol-level decisions.
In Arbitrum, the DAO governance is self-executing, meaning that votes will have an immediate impact and be carried out in accordance with on-chain decisions without the need for a third party to mediate between the parties.