Key Takeaways
- The Arbitrum Foundation launched ARB token and Orbit tool.
- ARB token launches March 23, 2023 with airdrop eligibility based on user activity.
- ARB token incentivizes developers to accumulate on Arbitrum chains.
- Arbitrum Foundation is now a DAO with ARB token used for voting on network decisions.
- Its Orbit tool allows for layer-3 solutions on Arbitrum codebase.
Introduction
Nothing gets the crypto community more fired up during bear markets than a big fat juicy airdrop, as January’s Blur airdrop showed, and its diet is about to get heavy on the $ARBs very soon. That’s right, the long-awaited Arbitrum airdrop was finally announced yesterday and is scheduled to inject billions of dollars worth of ARB tokens to Arbitrum users on 23 March 2023.
The Arbitrum Foundation is on a mission to decentralize the Ethereum ecosystem (which has announced its Shanghai upgrade for 12 April 2023) through its optimistic rollup layer-2 scaling solution. In line with this goal, the foundation will launch both ARB token and the Arbitrum Orbit layer-3 development tool.
As you know, CoolWallet already supports Arbitrum’s layer2 network and we should soon announce details about our ARB airdrop support. So don’t forget to check our official Twitter account and Discord channel next week (be vigilant against fake phishing sites).
Until then, there’s everything you need to know about the ARB token airdrop, Arbitrum Orbit’s L3 vision and the role of the Arbitrum DAO in governance.
ARB Token Launch and Airdrop Eligibility
First off, the big news: The ARB token will be launched on Thursday, March 23, 2023. The announcement was made in on Twitter with the following slightly cringeworthy but funny video that looks like something straight out of The Dev‘s playbook:
Arbitrum has partnered with crypto analytics firm Nansen to determine eligibility for the ARB token airdrop. Nansen’s expertise in data analytics helped Arbitrum establish eligibility by taking a snapshot of user activity in February, ensuring that the airdrop targets genuine users who have been active in the Arbitrum ecosystem. If you were actively participating and doing tasks like bridging and providing liquidity, you will likely be rewarded.
Allocations were made according to a points system with these the different ways you could have earned points:
A minimum of 3 points were required to be eligible for an airdrop, and a maximum of 12 points per address would earn you tokens.
Here is the scoring system:
Why not find out for yourself quickly? To check your eligibility, connect your wallet to the official Arbitrum website (always check you have the right URL to avoid phishing, which in this case is arbitrum.foundation) or perform a bulk check of your addresses using an unofficial source. It is recommended to double-check on the official website to ensure that you do not miss any eligible wallets.
Tokenomics and ARB Token Distribution
The ARB token is a governance token and will not replace ETH gas fees on Arbitrum. DAO and airdrop tokens will be fully available at launch.
The distribution of ARB tokens is as follows:
- 42.8% to the DAO treasury
- 26.9% to the team and their advisors
- 17.5% to early investors
- 11.6% to airdrop eligible wallets
- 1.13% to DAOs in the Arbitrum ecosystem
The initial supply of ARB tokens is 10 billion, with an inflation rate of up to 2% per year. The team and investor tokens have a one-year cliff and three years of monthly vesting thereafter. ARB tokens can be bridged to Ethereum L1, but on-chain voting for governance purposes will be on Arbitrum.
So what’s the value capture for ARB tokens as pure governance tokens that are not used for transaction fees? Well, the future use and direction of the Arbitrum technology will be governed by ARB tokens, which will be encouraging developers and participants on those chains to accumulate the tokens. While hains can still use the technology without being governed by ARB, the incentives for DAOs to participate in the governance of Arbitrum due to its importance to their applications are significant.
The DAO’s Role in Governance
With the launch of the ARB token, the Arbitrum Foundation is transitioning into a decentralized autonomous organization (DAO), meaning that ARB holders will be responsible for the network’s governance. The DAO will be responsible for controlling key decisions regarding the chain’s core protocol, including technology upgrades and revenue allocation to support the ecosystem. The ARB token will be used to vote on crucial decisions affecting the Arbitrum One and Arbitrum Nova networks, promoting community involvement in the governance process.
Arbitrum Orbit Layer-3 Development Tool
The foundation also announced Arbitrum Orbit, a layer-3 development toolkit that enables users to build and launch their own L3 solutions on top of the Arbitrum codebase. This has caused quite a stir on social media as we’re still trying to wrap our heads around which layer-2 to use. It shows the ambition of Arbitrum though and their (ahem) optimistic time horizon for strategic planning that they’re already rolling out L3s. The toolkit aims to promote innovation and empower the community to modify the code, innovate and build, and have licensing control. We will take a deeper spin around Orbit in a follow-up blog post at a later stage.
Conclusion
The Arbitrum Foundation’s announcement of the ARB token airdrop and the launch of Arbitrum Orbit marks a significant milestone in the decentralization of the Ethereum layer-2 scaling solution as well as the ETH Scaling Wars. The airdrop serves as the perfect antidote to the big Coinbase-Optimism announcement last month.
It will empower the community by giving governance power to ARB holders, while the Arbitrum Orbit toolkit provides the means for developers to build and launch layer-3 solutions on the Arbitrum codebase. These developments demonstrate Arbitrum’s commitment to fostering a more decentralized ecosystem and promoting innovation within the Ethereum scaling landscape. If you’re going to be buying or selling ARB tokens on 23 March and onwards, please be aware that there will be tremendous volatility.
Frequently Asked Questions
- What is the ARB token?
The ARB token is Arbitrum’s new governance token, which will be airdropped to eligible community members. ARB holders will be able to vote on key decisions governing Arbitrum One and Arbitrum Nova.
- When is the ARB token airdrop?
The ARB token airdrop is scheduled for Thursday, March 23 2023.
- How can I check my eligibility for the ARB token airdrop?
You can check your eligibility for the airdrop and claim tokens by visiting gov.arbitrum.foundation.
- What is Arbitrum Orbit?
Arbitrum Orbit is a layer-3 development toolkit that allows users to build and launch their own layer-3 solutions on top of the Arbitrum codebase. The toolkit aims to empower the community to innovate, build, and modify the code while providing licensing control to the community.
- Will the ARB token be used for paying fees on the Arbitrum chain?
No, the ARB token will not be used for paying fees on the Arbitrum chain. On-chain fees will remain payable through ETH.
- How does the ARB token compare to Optimism’s OP token?
The ARB token functions similarly to Optimism’s OP token, serving as a governance token for its respective ecosystem. Both tokens do not play a role in paying on-chain fees, which are payable through ETH.
Want to hear it straight from the horse’s mouth? Here’s a Bankless interview with Arbitrum’s Steven Goldfeder and Harry Kalodner to discuss the ARB Airdrop & Arbitrum Governance Launch in more detail.
