Arbitrum Airdrops $120 Million in ARB to DAOs

Arbitrum, a layer 2 scaling solution for Ethereum, has distributed $120 million worth of its native token, ARB, to various Decentralized Autonomous Organizations (DAOs) as part of its Airdrop program. The move aims to incentivize the adoption of Arbitrum’s platform and promote the growth of the Ethereum ecosystem. This significant allocation of funds signals Arbitrum’s commitment to supporting the DeFi sector and attracting more users to the platform. The Airdrop program is part of Arbitrum’s broader goal of creating a scalable, decentralized, and interoperable infrastructure that can cater to the needs of developers and users alike.

Arbitrum, the Ethereum scaling solution, has distributed $120 million worth of ARB tokens to decentralized autonomous organizations (DAOs) within its ecosystem. This move is aimed at decentralizing community governance within the ecosystem, as DAOs will have independence in choosing how to distribute their share of the ARB airdrop. Recipients of the allocated amount include Treasure DAO, SushiSwap, Dopex, Balancer, Uniswap, and Curve.

The goal of the ARB airdrop toward DAO treasuries is to localize community governance. PlutusDAO, for example, has pledged to “make Plutus stronger than ever before” by using the additional funds. Besides, the additional $130 million flushed into the Arbitrum ecosystem could help boost the liquidity across Arbitrum DeFi projects.

Mechanism Capital co-founder Andrew Kang noted that incentives provided the “flywheel that gave the L1 token 100%+ APY” within those ecosystems. Recently, Optimism also launched similar programs to improve liquidity and usage.

According to on-chain data analyst The Data Nerd, smaller market capitalization protocols will likely benefit the most from ARB incentives. The analyst mapped the ratio of ARB incentives to each protocol to its market capitalization and found that ecosystems like Vesta Finance, PlutusDAO, and Yin Finance are receiving incentives multiple times their current market capitalization, which could help foster ecosystem growth.

In conclusion, the ARB airdrop by Arbitrum is aimed at spurring growth in the ecosystem through community-driven governance and incentivizing liquidity and usage. The move will likely benefit small market capitalization protocols and promote the growth of the Arbitrum DeFi projects.

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