Arbitrationthe Ethereum layer 2, started to distribute governance token allocations (ARB) to CAD (decentralized autonomous organizations) eligible from its ecosystem. The Arbitrum core team had reserved 1.13% of the total supply of 10 billion tokens, equivalent to 113 million ARB tokens worth over $145 million, for qualified projects. This allocation is separate from the 11.6% token supply distributed as an airdrop to early adopters of Arbitrum in March.
First batch of ARB tokens issued to DAOs
Arbitration announced the issuance of the first batch of ARB tokens CAD who confirmed receiving test transactions on Twitter. On-chain data from Arbitrum revealed that the foundation transferred a significant amount of ARB tokens to 125 addresses from CAD, with further distributions planned later. This approach is similar to that of Optimism, the competitor of layer 2 Arbitrum, which distributed its tokens of governance to projects in its ecosystem shortly after its launch in 2022.
THE tokens of governance allocated to DAOs should help stimulate activity on the Arbitrum network. DAOs can use these allocations as part of their treasuries or for other purposes decided by their communities through governance votes. Projects that received tokens include GMXTreasureDAO, SushiSwap, Uniswap, AaveHop Protocol, Radiant Capital, SwingGains Network, Synapse, MakerDAOVesta, Curve, Layer Zero, 1inchSwapr and many others.
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