Arbitrum, one of Ethereum’s leading layer 2 scaling solutions, responded to recent discussions focusing on its token distribution and governance process.
In a tweet, the Arbitrum team confirmed that 40 million ARB has been provided to market makers as loans, while the remaining 10 million ARB will be converted to fiat and cover operating costs.
The team also highlighted that the platform holds a relatively small 7.5% token share compared to other similar projects such as Polygon, Starknet, Solana, Optimism, and Avalanche.
The Arbitrum team also provided lengthy responses to questions about the AIP-1 approval process. They explained that with the launch of a DAO, there is often a “chicken-and-egg” problem where certain decisions have to be made before a wider launch. The goal of AIP-1 is to involve the community in initial and final decision-making, allowing holders to show support by DAO voting to approve decisions and frameworks.
To clarify two key points, the team emphasized that they will not be selling 50 million ARBs, and detailed the reasoning behind the initial allocation of 750 million ARBs in their forum post. However, prior to the adoption of AIP-1, it was found that 750 million tokens were allocated to admin budget wallets. This is in stark contrast to the decentralized nature of DAOs.
In the latest move, the DAO used more than 50.5 million ARB. According to evidence provided by @jconorgrogan, former manager of the Coinbase exchange, the Arbitrum Foundation sent tens of millions of ARB tokens two weeks ago.
Of these 50.5M ARBs “spent” by the DAO, it would look like
50M was sent to Wintermute (mostly via Binance deposit address), 500K was sent to Gnosis Safe where it is today https://t.co/UV8gUXtIMg pic.twitter.com/7pcoeG9Qdv
— Connor (@jconorgrogan) April 2, 2023
Meanwhile, Lookonchain reported that 2,694B ARBs (Distributed to Offchain Labs Team and Future Team + Advisors) Transferred yesterday to ~140 EOA addresses via address “0x1e70” According to the document, all investor and team tokens have a 4-year lock-up period.
The data on the chain shows that the address “0x8d45” has moved by 22.56 million ARBs ($28 million) to Coinbase After receiving.For other addresses, although there is no current transfer record, the number ARBs This can be transferred to an exchange for sale at any time without any ticker restrictions.
2/The data on the chain shows that the address “0x8d45” has transmitted 22.56M $ARB($28 million) to #Coinbase After receiving.
For other addresses, although no transfers are currently being made, these $ARBs It can be transferred to the exchange for sale at any time, without code restrictions. pic.twitter.com/yROVIMe0rq
— Lookonchain (@lookonchain) April 2, 2023
- Over 69% of votes against proposal to transfer 750 million ARB to budget wallet controlled by Arbitrum Foundation
- Arbitrum ecological token “sells the truth”, smart money accumulates ARB
according to Kyptos