What is Arbitrum?
The total value locked (TVL) on the chain has almost doubled since the lows caused by the FTX crash, demonstrating how successful Arbitrum has been in gaining momentum. Popular perpetuals decentralized exchange (DEX) GMX has more than 35% of TVL on Arbitrum. The rumors of an airdrop of Arbitrum's token were another major factor in the company's meteoric rise.
Airdrop rumors first emerged in 2021 with the release of Arbitrum, and then again in 2022 with the release of Arbitrum Odyssey, a set of missions on Arbitrum. But, as bullish sentiment returned to the markets in early 2023, the speculations reached a fever pitch.
Who May Participate in the Airdrop? (__h2open__)
Arbitrum developed a set of criteria to identify users who would be eligible for the airdrop and the size of each user's airdrop.
For instance, if a user executes transactions over the course of nine separate months, they will be eligible for a greater airdrop than if they only execute transactions over the course of two months.
Moreover, wallets recognized as a sybil address through Hop Protocol's Bounty Program were totally excluded from the airdrop.
Users looking to sell their ARB tokens can also consider centralized exchanges (CEXs) in addition to the several DEXs available on Arbitrum. Many CEXs have already indicated that they would be listing ARB on launch day, including Binance, ByBit, OKEx, KuCoin, and others.
Distribution of tokens __h2open__ __h2close__
11.62% of the total token supply of the ARB token, which is 10 billion tokens, will be distributed through airdrop to individual wallets on March 23, 2023.
More over 245,000 addresses, out of a possible 625,143, fall within the range of the median airdrop amount, which is 1,250 ARB tokens. On the high end of the range, slightly over 4,400 addresses will be able to claim the maximum of 10,250 ARB tokens.
The Arbitrum Decentralized Autonomous Organization (DAO) treasury will also get 4.278 billion tokens at the same time. The governance vote will establish the coins' vesting schedule. The use of these tokens will be regulated by ARB token holders through governance proposals called Arbitrum Enhancement Proposals (AIPs). As a result, the token airdrop for Arbitrum is also the team's first step toward decentralizing the chain to the community.
If we take a closer look at the distribution, we can see that 113 million ARB tokens will also be given to DAO treasuries of protocols that build on Arbitrum.
Token Distribution to DAO Treasury __h2open__ __h2close__
Similar to the airdrop to persons, the airdrop to protocols will be decided by a separate point-based mechanism.
To further decentralize the chain among the team, investors, and ordinary users, this distribution to protocols aims to build a more diversified pool of ARB token holders. Moreover, since protocols directly build on the chain, they are in a unique position to suggest improvements that would be advantageous to all Arbitrum users.
Nansen, which worked with Arbitrum to calculate the airdrop allocation, has made available a graphic displaying the breakdown of transactions and contract logs per entity from the launch of Arbitrum One.
Which protocols will gain the most from the airdrop has been the subject of much discussion based only on this chart.
Around 55% of ARB tokens will effectively be allocated to the community through the issuance of tokens to the Arbitrum DAO treasury, community-owned protocols, and people.
Team and Investor Allocations __h2open__ __h2close__
The remaining 4.447 billion tokens will be locked for four years, with the first unlock occuring one year after the scheduled airdrop, on 23 March 2024. The remaining content will be released monthly until the final release on March 23, 2027.
Arbitrum Valuation (ARB) __h2open__ __h2close__
Users have started making predictions about the ARB token's initial price as the days till the airdrop decrease.
Optimism, another optimistic rollup, is compared to Arbitrum by one school of thinking. With a TVL of little over $980 million, Optimism is presently trading at a fully diluted market cap of $10.81 billion. Some analysts have calculated a fully diluted valuation for Arbitrum at $19.86 billion using the company's current TVL of $1.8 billion. This would result in an initial cost of $1.98 for the ARB token.
Another school of thought proposes using the existing ARBUSDT futures contract trading on BitMEX as a proxy for the token's initial offering price. At the time of publication, the futures contract for the June 30, 2023 expiration was trading at $1.38 per token.
For informational reasons only, this page contains links to other websites or material from other parties ("Third-Party Sites"). This essay is not meant to be financial advice and should not be taken that way.
