Arbitrum’s Important Steps Towards Decentralization

• Arbitrum took important steps to decentralize its networks while putting the community in control of Arbitrum’s ecosystem and technology.
• Arbitrum Foundation announced the launch of DAO governance for its networks with ARB token.

Arbitrum, Ethereum’s layer 2 scaling solutions, has announced its next phase of decentralization with the launch of DAO governance and its token. According to Arbitrum’s March 16 tweet, Arbitrum Foundation announced “the launch of Decentralized Autonomous Organization (DAO) governance for the Arbitrum One and Arbitrum Nova networks, alongside the launch of $ARB.”

Moreover, Arbitrum mentioned it worked with Nansen, the crypto analytics firm, to “snapshot” user activity in February to determine who should be eligible for ARB tokens.

Arbitrum Leading Towards Decentralization

According to Arbitrum, its Arbitrum Foundation launched DAO Governance for its two networks and has become the first EVM roll-up technology to achieve the second stage of decentralization. The Arbitrum token will “put governance power in the hands of the DAO. Meanwhile, 12.75% of the $ARB token supply will be airdropped on March 23.”

The recent launch of Arbitrum Orbit makes it permissionless and more accessible than ever for developers to launch their own customized Layer 3 chains using Arbitrum’s best-in-class technology stack, as Arbitrum noted in an official post.

Arbitrum also specified that its DAO governance is self-executing, which means the DAO’s votes about on-chain actions will directly have the power to effect and execute its on-chain decisions. This process does not rely on an intermediary to carry out those decisions.

Moreover, the Arbitrum DAO will have the ability to authorize additional Layer 2 chains on Ethereum. Whether $ ARB governs the chain, the DAO ensures that the community fully controls the future of Arbitrum and its technology.

Bets on “No Airdrop”

The crypto speculators were betting on “no airdrop” for Arbitrum. According to a decentralized prediction marketplace, PoolTogether, “Arbitrum airdrop by March 31st?” attracted nearly $4 million in volume since its March 10 launch. Here, the traders could place bets on “yes” or “no.” That depends on whether Arbitrum will launch and airdrop a native token by March 31.

Until March 16, bets were on “no,” which claims sold for 70 cents each until last week and then dropped to 64 cents. Meanwhile, the claims on “yes” also fell to the lowest 20 cents in the past week. It was due to the expiry date approaching before moving to the 50-cent mark on March 16.

But eventually, after the announcement of Arbitrum, it confirmed the airdrop of tradable ARB tokens starting March 23. Thus “yes” claims jumped to 96 cents almost instantly and gained a further 2 cents at press time. More than $600,000 will be paid out to bettors on March 31. While “no” claims dropped to just 3 cents, netting investors a 95% drop in their capital in just over two weeks had they invested in the initial period.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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