Arbitrum, the Layer 2 leader on Ethereum, has proceeded with the distribution of governance tokens to eligible Decentralized Autonomous Organizations (DAOs) within its ecosystem. This initiative aims to encourage user adoption and engagement on the protocol.
H2 Millions of ARBs distributed to DAOs
After the success of its airdrop last March, Arbitrum allocated 113 million ARB (i.e. 1.13% of the total offer) to DAO projects in its ecosystem. At the current price, this sum is equivalent to more than $145 million.
Several qualified projects have already confirmed receipt of their allocations. As to Onchain data of the protocol, they provide information on more than 125 transactions from the Arbitrum Foundation to the DAOs. Other transactions are planned for later.
With this allowance, the Arbitrum Foundation hopes to make the protocol more attractive. Indeed, the tokens distributed to the DAOs could make it possible to finance the development of useful applications on Arbitrum.
Beneficiary projects include GMX, TreasureDAO, SushiSwap, Uniswap, Aave, Hop Protocol, Radiant Capital, Balancer, Gains Network, Synapse, MakerDAO, Vesta, Curve, Layer Zero, 1inch, Swapr and many more.
With this funding, Arbitrum is following a similar approach to Optimism, which distributed its governance tokens earlier in 2022. However, despite the project’s runaway success, it has not been immune to a crisis. of governance.
H2 The controversies surrounding the Arbitrum Foundation
The Arbitrum Foundation has recently generated heated controversies. Proposal AIP-1 was rejected because it involved the transfer of 750 million tokens at the foundation. In question, the latter had already spent 50 million tokens without proper authorization.
However, the proposal AIP-1.1 enabled the Foundation to replenish its coffers with 750 million ARB. Tokens will be used for special grants within the administrative budget of the Foundation.
Token allocations to DAOs support activity on the Arbitrum Network. They also create an environment conducive to quality projects. As token distribution continues, it is likely that more projects will join the Arbitrum ecosystem, providing users with a wider choice of decentralized applications and financial services.
Moreover, this operation reflects a growing trend in the blockchain industry. Many projects seek to strengthen their ecosystems by supporting key players and rewarding active users. This collaborative and incentive-based approach promotes the adoption and growth of these networks. They also reinforce the decentralization of the sector.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
