Arbitrum Officially Announces Intentions Of DAO Transition And New Token Airdrop

Arbitrum has finally announced its plans of getting a token. According to the Arbitrum Foundation, ARB will be the official name of the new token, and it shall reportedly be airdropped to community members on March 23rd, 2023.

As per the Arbitrum Foundation, ARB will therefore mark the official transition of Arbirtrum into a DAO (Decentralized Autonomous Organization), which means that ARB holders shall be allowed to vote on key decisions governing Arbitrum One and Arbitrum Nova. Both of these are networks which enable users to transact on the Ethereum blockchain at faster and relatively lower fees.

Important details

Arbitrum DAO will be given the authority to regulate key decisions at the core protocol level, such as from how the core technology is updated to how revenue can be used to support the ecosystem. Moreover, while the Arbitrum Foundation intends to distribute a relatively large number of tokens (44%), Offchain Labs claims that the ARB token would make the Arbitrum ecosystem much more decentralized than alternative scaling chains.

The most exciting part however is certainly the decentralization aspect, in the sense that Offchain Labs would no longer have any control over the future of this chain, according to Offchain Labs CEO Steven Goldfeder. Arbitrum collaborated with Nansen, a crypto analytics firm, in February to monitor user activity in order to determine who can qualify for ARB tokens.

Additionally, users of Arbitrum can check their eligibility for the airdrop and also claim tokens if they qualify. They are advised to exercise caution when claiming their tokens though as scammers often rely on airdrops to phish people through spoof websites and other schemes.

Time is of the essence

Arbitrum has nearly $3.7 billion invested in its Ethereum rollup network, Aribtrum One, making it the undisputed market leader in a crowded field of rival chains. Arbitrum also controls 55% of the Ethereum Layer 2 market, according to an analytics website called L2 Beat. Since the network went live in 2021, anticipation for an Arbitrum token has been at an all-time high as the project is one of the most noteworthy crypto projects without a token.

Optimism, the main competitor to Arbitrum in the Ethereum scaling space, also launched its own token nearly a year ago when it transitioned to DAO governance. Arbitrum One and Optimism are both examples of optimistic rollup networks. They are blockchains that run alongside Ethereum, group together large numbers of transactions, and then write those transactions to the Ethereum ledger in bulk, reducing the fees required to execute those transactions individually.