Ethereum Layer Two (L2) scaling solution Arbitrum has launched a native governance token called ARB and a self-executing decentralized autonomous organization (DAO) governance model. The ARB token will have an initial supply of 10 billion, and the coins will be airdropped to the Arbitrum DAO treasury, Offchain Labs (the company behind Arbitrum), Offchain Labs investors, Arbitrum platform users and the DAOs being built with L2. technology.
Arbitrum Releases a Self-Running DAO Governance Model Aiming for Further Decentralization
Arbitrum, the L2 scaling project, has Announced the release of a self-executing DAO governance model and a new governance token called ARB on March 16, 2023. “Today, the Arbitrum Foundation is extremely pleased to announce the release of DAO governance for the Arbitrum One and Arbitrum Nova networks, along with the launch of ARB,” the team tweeted on Thursday. The ARB airdrop will be distributed to eligible participants of the Arbitrum ecosystem, and claiming begins on March 23.
There is an initial supply of 10 billion ARB tokens, and the system’s inflation rate will peak at 2% per year, according to the “airdrop eligibility and distribution specifications.” page. ARB tokens will be distributed to early adopters and DAOs who have used the Arbitrum ecosystem prior to block height 58,642,080 on Arbitrum One, which occurred on February 6, 2023. Arbitrum also noted who believes the project is “leading the way as the first L2 to launch self-executing governance.”
The self-executing system means that the decentralized autonomous organization “votes on on-chain shares will directly have the power to effect and execute their on-chain decisions, without relying on an intermediary to carry out those decisions.” In addition to the governance system, Offchain Labs has revealed Arbitrum Orbit, a permissionless solution for any developer to build a layer three (L3) blockchain using Arbitrum technology, according to the company. Press release.
Arbitrum is a bit late to the game in terms of L2s launching native governance tokens, as Optimism revealed the optimism (OP) token launch in April 2022. OP is currently trading at $2.46 per unit, down more than 4% against the US dollar over the past day. The OP price today is 23.88% lower than the all-time high of $3.22 that it hit 20 days ago on Feb 24, 2023.
The ARB airdrop announcement and eligibility qualifications further note that “a number of anti-Sybil rules were put in place” to prevent bots from taking advantage of the ARB airdrop. The team also noted that investor and team tokens are subject to four-year lock-ins, “with the first unlocks in one year and then monthly unlocks for the remaining three years.”
What do you think about the release of ARB and self-executing DAO governance on the Arbitrum L2 platform? Share your thoughts in the comments section below.
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