Arbitrum, an Ethereum layer 2 (L2) scaling solution, has announced the launch of ARB, a native governance token and self-executing, distributed autonomous organization (DAO) governance model. The initial supply of ARB tokens is 10 billion, with coins airdropped to the Arbitrum DAO treasury, Offchain Labs (Arbitrum’s operating company), Offchain Labs investors, Arbitrum platform users and DAOs built on L2 technology. DAOs to be built with L2 technology.
Arbitrum announces self-executing DAO governance model aimed at advancing decentralization
Arbitrum, an L2 scaling project, has announcedthe launch of a self-executing DAO governance model and a new governance token called ARB on March 16, 2023.” Today, Arbitrum Foundation is very excited to announce the launch of DAO governance for the Arbitrum One and Arbitrum Nova networks, coinciding with the launch of ARB.” The team tweeted on Thursday, adding that ARB airdrops will be distributed to eligible Arbitrum ecosystem participants and billing will begin on March 23.
“Airdrop Eligibility and Distribution Specifications”pagesays the initial supply will be 10 billion ARB tokens, with a maximum system inflation rate of 2% per year. ARB tokens will be distributed to initial users and DAOs who used the Arbitrum ecosystem prior to the Arbitrum One block high of 58,642,080 that occurred on February 6, 2023. Arbitrum alsonotedthat it believes the project is “leading the way as the first L2 to launch self-executing governance.”
A self-executing system means that a decentralized autonomous organization “voting on on-chain actions has the power to directly effect and execute its on-chain decisions without having to rely on intermediaries to execute its on-chain decisions.” In addition to the governance system, Offchain Labs has revealed Arbitrum Orbit, an unauthorized solution for any developer to build a layer 3 (L3) blockchain using Arbitrum’s technology, the company’spress releaseaccording to .
Arbitrum is slightly behind the curve in terms of L2 releasing native governance tokens, as Optimism revealed itsoptimism (OP)token launch in April 2022. OP is currently trading at $2.46 per unit, down more than 4% against the USD over the past day; OP’s price today is 23.88% lower than the all-time high of $3.22 that OP reached 20 days ago on February 24, 2023.
The ARB airdrop announcement and eligibility further stated that “a number of anti-civil rules have been established” to combat bots using the ARB airdrop. It also notes that investor and team tokens are subject to a four-year lockup, “with the first unlock after one year and monthly unlocks for the remaining three years.”
Image Credit:: Shutter
