After it was revealed that Arbitrum will eventually receive a token, it has become the dominant player in the layer 2 scaling market for Ethereum. The Arbitrum Foundation said that the new token in question would be called the ARB. On Thursday, March 23, community members will purportedly receive airdrops of the new token from Arbitrum.
The foundation has also said that the ARB will signify the official transformation of Arbitrum into a decentralized independent organization. In essence, this meant that holders of ARBs would have a voice in important decisions affecting ARB One and ARB Nova. The aforementioned networks are well recognized for enabling users to transact on the Ethereum blockchain at faster and cheaper rates.
Arbitrum’s ARB Introduction
The Arbitrum DAO will purportedly have the authority to govern important choices at the core protocol level, according to a statement from the foundation. According to the claims, this would result from how the chain’s technology is updated and how the chain’s revenue may be used to maintain the ecosystem.
According to reports, the foundation intends to distribute a sizable amount of tokens to core contributors and investors. According to reports, this might reach 44%. But, Offchain Labs, the company that created Arbitrum, believes that the ARB token will make the Arbitrum ecosystem more decentralized than existing scaling chains.
Offchain Labs CEO Steven Goldfeder told CoinDesk, “For me, the most interesting component is the decentralization — the fact that Offchain Labs will no longer have any control over the destiny of this chain. “We will supply services, and if the DAO requests that we build software, we will comply.”
The Right Time
According to reports, Arbitrum has $3.69 billion secured in its Ethereum rollup network. According to this assertion, ARB One is the market leader in a very competitive field of rival chains. One of the biggest tokens in the market, the ecosystem has only recently received its own token. Since the network launched in 2021, this situation has raised the community’s anticipation for the Arbitrum token to a fever pitch. In contrast, Optimism, a close rival of ARB in the Ethereum scaling market, previously introduced its OP token approximately a year ago in light of its own switch to DAO governance.
Goldfeder has made an effort to justify why it took ARB so long to launch its own token. He claimed that technology came first and that, according to their technical roadmap, this is the “right time,” Goldfeder also claimed that the ecosystem has achieved a number of technical milestones, including functional fraud proofs, which its primary rival has not yet attained.