Airdrop

Layer 2 Arbitrum Finally Airdrops ARB Token Long Eager By The Community

Key Points:

Arbitrum finally airdrops a token.
The airdrop will account for 12.75% of the token’s total supply, and tokens will be distributed to people who have utilized the network in the previous year.
After the changeover, the layer 2 network will be governed by a self-executing DAO.

Arbitrum is finally truly decentralized into the hands of its community.

On March 23, Arbitrum will airdrop a governance token with the ticker ARB to its community members. This puts the project one step closer to complete decentralization.

According to the Arbitrum Foundation, ARB will mark Arbitrum’s official transition into a decentralized autonomous organization (DAO), which means that ARB holders will be able to vote on key decisions governing One and Nova – networks that allow users to transact on the Ethereum blockchain at faster and lower fees.

The move is in accordance with a suggestion by Ethereum co-founder Vitalik Buterin, who highlighted the required steps to enable optimistic rollups to take off training wheels and therefore become completely decentralized.

According to governance papers and a freshly established constitution, the airdrop will account for 12.75% of the token’s total supply, and tokens will be distributed to people who have utilized the network in the previous year. The token will not be used to pay network transaction fees.

Arbitrum controls more than 55% of the layer 2 market in terms of money invested, according to L2 Beat statistics.

Source: L2 Beat

Offchain Labs, the development team behind Arbitrum, has announced the token drop, however, distribution will not begin for another week.

The change is notable in that Arbitrum’s type of governance will be a self-executing DAO. This implies that governance members will be able to pass protocol updates that will be implemented on-chain automatically. Offchain Labs has chosen a more drastic kind of decentralization in doing so.

Offchain Labs collaborated with crypto data supplier Nansen to develop the criteria for who should get the airdrop, with the goal of rewarding legitimate users rather than those who attempted to rig the system.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.