ARBITRUM: Let’s Talk Post Airdrop
Written by Godwin Okwong
Days earlier, maybe weeks, or months earlier, there had been speculations, predictions, rumours, and maybe, news about one of the biggest and most generous airdrops to take place since APTOS and Blur: the Arbitrum airdrop — the airdrop that is to make rich the poor, and the rich richer. Over 600,000 wallet addresses received the airdrop of slightly more than one billion tokens. The minimum and maximum airdrop entitlements were 625 and 10,250 tokens, respectively.
The airdrop, according to Arbitrum, is an “official transition” into a DAO, thus, enabling holders to participate in voting on critical issues affecting the Arbitrum One and Arbitrum Nova networks.
Fast-forward, though the beneficiaries of the sumptuous generosity are still enjoying the reward for their active participation in not just the ARB community, but crypto space in general, the whole buzz and excitement is slowly fading away, and enthusiasts are already looking ahead to what’s next, on to the next big thing that is coming, or what next to expect from Arbitrum and the entire Offchain Labs.
Arbitrum is an Ethereum layer-two scaling solution, which launched its token airdrop (ARB) on March 23, and has been the center of attention for a while. Offchain Labs invented Arbitrum. In September 2021, the business completed a Series B fundraising round, raising $120 million. Arbitrum aims to increase the scalability and performance of Ethereum’s smart contracts while maintaining supplementary privacy measures.
According to Arbitrum, its mission is to decentralize its networks and provide the community access to the technology and environment of the company. It has several plans to give all sub-communities a voice, the airdrop and DAO being only two of them.
The Arbitrum airdrop is particularly significant since it will signal the blockchain’s official conversion to a DAO and provide ARB token holders a chance to decide on protocol updates. 10 billion tokens total will be in circulation for ARB. Of the 10 billion tokens, 56% will belong to the Arbitrum community, while 11.5% were to be given out through the airdrop to qualifying users. A further 1.1% is assigned to be given to the DAOs in charge of running the Arbitrum ecosystem. The Arbitrum DAO will oversee a treasury where the remaining tokens will be placed. The workers and investors of Offchain Labs, which created Arbitrum in the first place, were to receive an additional 44% of ARB’s circulation. All employee and investor tokens, however, will be subject to lock-up times and vesting schedules. There are four-year lock-ups on all investor and team tokens. The first unlock will take place in a year, followed by monthly unlocks for the next three.
Rolling up makes Arbitrum easier to use and more affordable, while also sending all transaction data back to the Ethereum network. Ethereum can only handle about 14 transactions per second, compared to the layer 2 protocols’ 40,000 maximum. While the identical transaction on the Ethereum blockchain takes many dollars to complete, it only costs about two cents on the Arbitrum blockchain.
So, this will make one wonder how Arbitrum can actually cut back on the expensive transactional gas fees of Ethereum?
The practice of “rolling up” several off-chain transactions is what is used in roll-ups, a smart contract scalability solution. When all the transactions have been combined, one transaction is delivered to the Ethereum blockchain. This lessens network latency while maintaining safe transactions and lowering gas expenses.
Arbitrum also facilitates the Ethereum Virtual Machine. (EVM). As a result, developers of Ethereum’s decentralized finance (DeFi) applications may quickly and simply connect their decentralized applications (DApps) with Arbitrum without having to make any modifications to their applications.
The Ethereum Virtual Machine (EVM) is also supported by Arbitrum, allowing Ethereum DeFi developers to seamlessly connect their decentralized applications with Arbitrum without the need for any changes.
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