Arbitrum, the Ethereum layer 2 scaling solution, has launched its token airdrop, offering protocol governance rights to the community.
At the time of writing, the governance token ARB is trading at $1.38, a significant drop from its initial price.
- Following the airdrop at 9:05 am ET, ARB spiked to $8.67 before plummeting to almost $1.00 within an hour due to heavy traffic that caused the claim website to go down.
- While applications to become a delegate for Arbitrum ended on Wednesday, those eligible for the airdrop can still claim their tokens within the next 6 months, albeit with high gas fees and server congestion, stated Arbitrum.
- 12.75% of the total ARB supply has been distributed to individual token holders and DAOs within the Arbitrum ecosystem, with the top 3 DAOs being Treasure_DAO, GMX, and Uniswap, according to a tweet by ArbitrumNewsDAO.
- Arbitrum explained on Tuesday that by distributing to Arbitrum DAOs, they hope to spread governance power more widely amongst users than solely allocating it to those who were eligible for the airdrop.
- The remaining distribution of Arbitrum tokens is allocated for its DAO treasury, team and advisors, and investors.
- Before the airdrop, IOUs for ARB tokens could still be exchanged, trading for roughly $6.00 on Wednesday.
- Arbitrum, using roll-up technology to settle transactions in batches on Ethereum’s main chain, is the largest layer 2 scaling solution for Ethereum. Daily Arbitrum transactions hit a record high ahead of the airdrop.
