• Arbitrum Launches Native Governance Token ARB and Self-Executing DAO Governance Model
• ARB token will have an initial supply of 10 billion, and coins will be airdropped to the Arbitrum DAO treasury.
• The self-executing system means that the decentralized autonomous organization „votes about on-chain actions will directly have the power to effect and execute its on-chain decisions.
Arbitrum Launches Native Governance Token
The Ethereum layer two (L2) scaling solution Arbitrum has launched a native governance token named ARB and a self-executing decentralized autonomous organization (DAO) governance model. The ARB token will have an initial supply of 10 billion, and coins will be airdropped to the Arbitrum DAO treasury, Offchain Labs (the company behind Arbitrum), Offchain Labs investors, users of the Arbitrum platform, and DAOs that are building with the L2 technology.
Self Executing DAO Governance Model
Arbitrum, the L2 scaling project, has announced the launch of a self-executing DAO governance model and a new governance token called ARB on March 16, 2023. The ARB airdrop 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 at 2% per year. The self-executing system means that the decentralized autonomous organization „votes about on-chain actions will directly have the power to effect and execute its 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. This makes it easier for developers to utilize this technology in their projects without needing permission from anyone else or having any central governing entity in charge.
Comparison with Optimism
Arbitum is slightly late to game in terms of releasing native governance tokens compared Optimism which released theirs in April 2022. Currently OP is trading for $2.46 per unit down more than 4% against US dollar over last day as compared to its all time high price of $3.22 achieved 20 days ago on Feb 24th 2023 when it was up by 23%.