Arbitrum, a famous Layer 2 project on Ethereum, recently announced that they will release a governance token with the ticker symbol ARB on March 23. This follows Arbitrum’s earlier announcement that it plans to move to a fully decentralized model. This airdrop accounts for 12.75% of the token’s total supply and is given to users who have been active on the network in the past year.
Arbitrum launches Airdrop campaign
According to the official blog post, ARB marks Arbitrum’s official transition to a Decentralized Autonomous Organization (DAO). This means ARB holders have the ability to vote on critical decisions related to Arbitrum One and Arbitrum Nova, which are networks that allow users to transact on the Ethereum blockchain at faster speeds and lower costs.
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Offchain Labs, the company developing Arbitrum, praised that the ARB token will make the ecosystem more decentralized than other scaling chains. This is despite the fact that the foundation intends to award a substantial number of tokens to its investors and core contributors (44%) of the total supply. However, it was made abundantly clear that the ARB token will not be used for paying transaction fees on the network.
ARB Airdrop details
In February, Arbitrum partnered with Nansen, a firm that specializes in cryptocurrency analytics, to create a “snapshot” of user activity to determine who should be qualified to receive ARB tokens. The total number of ARBs in circulation is limited to 10 billion. The Arbitrum community controls 56% of those tokens; as part of the airdrop, eligible users of Arbitrum will receive 11.5% of the total supply, and DAOs using the Arbitrum ecosystem will receive 1.1% of the tokens.
The remaining community tokens will be transferred to a treasury controlled by the new Arbitrum DAO. This treasury will allow holders of ARB to vote on how the funds should be distributed. The remaining 44% of ARB’s total circulation is distributed among the investors and employees of Offchain Labs.
Arbitrum users can check their eligibility for the airdrop and submit a claim for tokens by visiting the official gov.arbitrum.foundation website. Users are strongly advised to be careful when claiming the tokens due to rampant airdrop scams flooding the market.
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Pratik has been a crypto evangelist since 2016 and has experienced almost everything crypto has to offer. Be it the ICO boom, the bear markets of 2018, Bitcoin’s halving so far – he’s seen it all.
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