Arbitrum Launches ARB Token and Boost Decentralization
Arbitrum, a major player in Ethereum's layer 2 scaling arena, has announced the introduction of a new token called ARB. The Arbitrum Foundation stated on Thursday that the token will be distributed to community members on March 23rd via airdrop
ARB will signify the official transition of Arbitrum into a decentralized autonomous organization (DAO), giving ARB holders the power to vote on key decisions governing Arbitrum One and Arbitrum Nova, which offer users quicker transaction speeds and lower fees on the Ethereum blockchain. The Arbitrum Foundation has stated that the DAO will be able to control key decisions at the core protocol level, such as how the chain's technology is updated and how the revenue from the chain can be used to support the ecosystem.
The total circulation of ARB will be 10 billion tokens, with 56% controlled by the Arbitrum community. The remaining tokens will go to a treasury controlled by the new Arbitrum DAO. The other 44% of ARB's circulation will go to investors and employees of Offchain Labs, the development firm behind Arbitrum, with these tokens subject to lock-up periods and vesting schedules.
Unlike ether (ETH), which is used to pay fees on Ethereum and Arbitrum, ARB will only be used for protocol governance. Arbitrum DAO's governance process will be self-executing, allowing votes to directly modify Arbitrum's core code, subject to a time delay for audits and safety considerations. A 12-person security council, governed by the Arbitrum DAO, will have the ability to make quicker bug fixes.
ARB's introduction coincides with the launch of Arbitrum Obit, which will enable third-party apps and protocols to create new "layer 3" blockchains based on Arbitrum's low-fee infrastructure. Users can check their eligibility for the airdrop and claim tokens on the gov.arbitrum.foundation website, but should be cautious of potential phishing scams.
Ever since the announcement of the token airdrop, it has become a popular target for scammers. The community is warning of hundreds of phishing scams aimed at tricking crypto users. This has led to more than a few attempts from scammers to set up fake token airdrops in order to steal funds from victims prior to the official event. For instance, CertiK, a blockchain security firm, has identified a fake Arbitrum Twitter account called "arbitrum_launch" that is advertising a token airdrop. It has warned users not to interact with it. In light of reports of phishing websites and scams offering Arbitrum airdrop tokens, the community has urged others to stay vigilant.
About the author
Lee Brooks
Lee Brooks is passionate about the world of blockchain and crypto and by the endless possibilities these technologies offer
