Arbitrum, one of the major platforms in Ethereum’s layer 2 scaling ecosystem is becoming even bigger! The ARB tokens are ready as well as the 1 Billion Arbitrum airdrop. Furthermore, distribution to members of the community via an airdrop will begin on March 23, 2023.
What is ARB Token and its Tokenomics?
Arbitrum’s native token, ARB, will have a total supply of 10 billion. Meanwhile, the community will control 56% of those tokens. The upcoming airdrop will grant 11.5% of the total supply to eligible Arbitrum users, while DAOs operating within the Arbitrum ecosystem received 1.1%. The remaining tokens will go to a treasury controlled by the new Arbitrum DAO. This will allow ARB holders to decide how to disburse the funds. The remaining 44% of ARB’s circulation will be distributed to investors and employees of Offchain Labs, the development firm behind Arbitrum, subject to lock-up periods and vesting schedules.
Unlike Ethereum’s ether (ETH), which is used to pay transaction fees, ARB will only be used for protocol governance. The Arbitrum DAO’s governance process will be self-executing, allowing votes to directly modify Arbitrum’s core code. However, code changes will be subject to time delays to allow for safety considerations and audits. Furthermore, a 12-person security council governed by the Arbitrum DAO will have the authority to make faster bug fixes.
The release of ARB coincides with the launch of Arbitrum Obit, which enables third-party applications and protocols to build new “layer 3” blockchains on top of Arbitrum’s low-fee infrastructure.
The Future of Arbitrum
The Arbitrum Foundation has announced that ARB will signify the transition of Arbitrum into a decentralized autonomous organization (DAO). Now, ARB holders will have the ability to participate in important decisions regarding Arbitrum One and Arbitrum Nova. These networks provide users with the ability to transact on the Ethereum blockchain more efficiently, with faster speeds and lower fees.
In a statement, the Arbitrum Foundation has said that the Arbitrum DAO will have significant authority to control crucial decisions at the core protocol level. This includes the allocation of chain revenue to support the ecosystem and how the technology of the chain is upgraded. Despite plans to grant a relatively high number of tokens to investors and core contributors (44%), the creator of Arbitrum – Offchain Labs – argues that the introduction of the ARB token will bring greater decentralization to the Arbitrum ecosystem compared to other scaling chains.
Personal Note From MEXC Team
What are you waiting for? Check out Arbitrum now and check your airdrop eligibility! it is also high time you check out our MEXC trading page and find out what we have to offer! You can learn more about crypto industry news and interesting articles to get you up to speed with the crypto world. Happy trading!
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