What is Arbitrum (ARB)?
ARB is the native token of Arbitrum, which is an Ethereum-based Layer 2 scaling solution. Arbitrum employs optimistic rollups and relies, as well as relies on Ethereum compatibility and security. However, compared to Ethereum, Arbitrum has lower fees. Besides, it is more scalable, faster, and has higher throughput.
It's also worth noting that Arbitrum has a dynamic DeFi ecosystem that consists of various tools, decentralized applications (dApps), and so on.
To see the current ARB price, check out the Arbitrum price chart above.
Use Cases of ARB Tokens
ARB is the native governance token of Arbitrum. As the platform shifted its governance to the community and became a decentralized autonomous organization (DAO), the Arbitrum token became means of providing community members with voting rights. They can vote on a variety of things, including upcoming features, Arbitrum upgrades, electing a Security Council, fund distribution, and so on. Besides, ARB token holders can also make their own proposals for various changes.
Moreover, ARB tokens can be staked to generate rewards and secure the network. Though, do note that ARB cannot be used to cover network fees. Instead, Arbitrum fees are covered using ETH or other tokens based on the ERC-20 token standard.
If you plan to acquire ARB crypto assets, make sure to analyze the Arbitrum price chart beforehand. It features the current and the previous ARB price.
Who Founded Arbitrum?
Offchain Labs developed the Arbitrum crypto project. Offchain Labs is a development company founded by Steven Goldfeder, Ed Felten, and Harry Kalodner.
Steven Goldfeder is the Chief Executing Officer of Offchain Labs. He is an entrepreneur and computer scientist with a Ph.D. from Princeton.
Ed Felten is the Chief Scientist of Offchain Labs. In the past, Felten was the Deputy CTO of Barack Obama. Apart from working with Offchain Labs, he is also a computer science professor at Princeton University.
Harry Kalodner is the Chief Technology Officer of Offchain Labs. He also has a Ph.D. in computer science from Princeton.
Tokenomics of ARB
As of writing, there is no maximum supply set. However, the initial total supply of Arbitrum coins is 10 billion. The ARB token generation event took place on March 23, 2023. Arbitrum tokens were distributed in the following way:
- Arbitrum DAO treasury – 42.78%;
- Offchain Labs team and advisors – 26.94%;
- Investors – 17.53%;
- Airdrop to early Arbitrum users – 11.62%;
- Airdrop to DAOs – 1.13%.