Arbitrum has recently announced that its layer 2 solution will undergo an Airdrop of its ARB token and transition to a DAO. This move is expected to bring several benefits to the platform, including improved governance, incentivization, and community engagement.
The long-awaited Airdrop, which is scheduled to take place next week, will distribute the platform's new token, ARB, to users who have interacted with the protocol in the past. According to the platform, the token will primarily be used for governance purposes.
The leading layer 2 solution
As a layer 2 protocol built on Ethereum, Arbitrum assumes fundamental security functions of Ethereum, but instead of Proof-of-Stake, it utilizes what are known as Optimistic Rollups. Optimistic Rollups consolidate multiple transactions into a single "Rollup" transaction, which is then processed off-chain. This reduces the amount of data that needs to be processed on-chain, resulting in lower fees and faster transaction speeds.
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One of the main advantages of Arbitrum is its compatibility with existing Ethereum smart contracts. This means that dApp developers can easily migrate their applications to the network without having to rewrite the existing code. Furthermore, Arbitrum supports a wide range of programming languages. With over $3.6 billion in Total Value Locked (TVL), Arbitrum is the most successful Layer 2 solution to date.
Transition to a DAO
The transition to a decentralized autonomous organization (DAO) is a significant development for the platform. This move involves the creation of a self-executing DAO that enables community members to propose and vote on changes to the platform.
"We believe that a DAO is the logical next step in the evolution of the Arbitrum protocol. By moving to a DAO, we can empower the community to take an active role in shaping the future of the protocol, and we're excited to see what new ideas and initiatives emerge." - Steven Goldfeder, Arbitrum co-founder
The transition through an Airdrop is not only a milestone for Arbitrum but also a historic day for the scaling of Ethereum as a whole. The Ethereum community has been working for years to build a secure and decentralized Layer 2 solution. Last year, Vitalik Buterin proposed a three-stage scheme for classifying the maturity of Rollups. With this announcement, Arbitrum becomes the first EVM-Rollup ever to reach the second of the three stages.
Token airdrop is just the beginning
The airdrop and transition to a DAO are just the latest developments for the platform, which has gained momentum in recent months. In addition to its Layer-2 scaling solution for Ethereum, Arbitrum has also been working on other Layer-3 solutions, such as Orbit. The protocol aims to enable decentralized, scalable data storage and computation built on top of Arbitrum.
Overall, the airdrop and transition to a DAO represent an important milestone for the Arbitrum platform. By giving its community more say in the management of the protocol, the platform aims to become more resilient, adaptable, and innovative. With the introduction of the new ARB token and DAO, the platform is well-positioned to continue its growth and success in the rapidly evolving world of blockchain technology.