The Ethereum layer two (L2) scaling solution Arbitrum launched a native governance token called ARB and a self-implementing decentralized autonomous organization (DAO) governance model. The ARB token will have an initial supply of 10 billion, and coins will be airdropped to the treasury of Arbitrum DAO, Offchain Labs (the company behind Arbitrum), investors of Offchain Labs, users of the Arbitrum platform and DAOs that build with the L2. technology
Arbitrum Launches Self-Executing DAO Governance Model That Aims for Increased Decentralization
Arbitrum, the L2 scale project, has announced the launch 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 launch of DAO governance for the Arbitrum One and Arbitrum Nova networks , along with the launch of ARB,” the team tweeted Thursday. The ARB flight will be distributed to eligible Arbitrum ecosystem participants, and claiming begins on March 23.
There is an initial supply of 10 billion ARB tokens, and the system’s inflation rate will max out at 2% per year, according to the “flight eligibility and distribution specifications”. page. The ARB tokens will be distributed to early adopters and DAOs who used the Arbitrum ecosystem prior to block height 58,642,080 on Arbitrum One, which occurred on February 6, 2023. Arbitrum also noted that it believes that the project “leads the way as the first L2 to launch self-executing management.”
The self-executing system means that the decentralized autonomous organization “votes on on-chain actions will directly have the power to implement and execute their on-chain decisions, without relying on an intermediary to carry out those decisions.” In addition to the governance system, Offchain Labs unveiled 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 little late to the game regarding L2s releasing native control tokens, as Optimism revealed the optimism (OP) token launch in April 2022. Currently, OP is trading for $2.46 per unit, down 4% against the US dollar over the last day. The OP price today is 23.88% lower than the all-time high OP of $3.22 reached 20 days ago on February 24, 2023.
The ARB airdrop announcement and eligibility criteria further note that “some anti-Sybil rules have been established” to combat bots from taking advantage of the ARB airdrop. The team also noted that the investor and team tokens are subject to four-year locks, “with the first unlocks occurring in one year and then monthly unlocks for the remaining three years.”
What are your thoughts on the launch of ARB and self-executing DAO governance on the Arbitrum L2 platform? Share your thoughts in the comments section below.
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