The highly anticipated ARB token will grant community holders voting rights on changes to the Eth layer 2 network.
The token for Arbitrum has finally arrived and is coming soon to community members! The Arbitrum Foundation announced to their community that the new ARB tokens will be airdropped to members of their community on Thursday, March 23, 2023.
A bit of history: With the rise of decentralized finance (DeFi) applications on Ethereum, the network has been struggling with high gas fees and slow transaction times. This has led to the development of Layer 2 solutions, which aims to alleviate the congestion by moving transactions off the main Ethereum blockchain and onto a separate, more efficient network.
Arbitrum is one of the leading Layer 2 solutions, offering fast and low cost transactions with full compatibility with Ethereum smart contracts. Its technology is based on optimistic rollups, which allow for high throughput while maintaining security and decentralization.
According to the Foundation, with the issuance of ARB, this will signify the official transition into a DAO, therefore, token holders of ARB will have voting rights to key decisions governing Arbitrum One and Nova – these are the networks with lower fees and greater speeds that allow users to transact on the Ethereum blockchain.
“Arbitrum DAO will have the power to control key decisions at the core protocol level, from now the chain’s technology is upgraded to how the revenue from the chain can be used to support the ecosystem,” said the Arbitrum team.
Although the Arbitrum Foundation plans to grant 44% of tokens to its investors and core contributors, Offchain Labs (company behind Arbitrum) did mention that the ARB token will make the ecosystem more decentralized than other scaling chains. The team behind Arbitrum is most excited about the launch of the token as it will finally give the community back control and to dictate the future of the chain.
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