{"id":"arbitrum-arb","title":"ARB (Arbitrum)","content":"**ARB** is the native [governance token](https://iq.wiki/wiki/governance-tokens) of [Arbitrum](https://iq.wiki/wiki/arbitrum). The token is used to pay [transaction fees](https://iq.wiki/wiki/transaction-fee) on the [Arbitrum](https://iq.wiki/wiki/arbitrum) network and serves as a means of governance for the protocol. Holders of $ARB can participate in decision-making processes, such as proposing and voting on protocol upgrades or changes. [\\[4\\]](#cite-id-p8rcrywxono)[\\[5\\]](#cite-id-nrypyg7lwf)\n\n# Overview\n\n$ARB is an [ERC-20](https://iq.wiki/wiki/erc-20) [governance token](https://iq.wiki/wiki/governance-tokens) used within the [Arbitrum](https://iq.wiki/wiki/arbitrum) ecosystem to participate in decentralized decision-making through the [Arbitrum](https://iq.wiki/wiki/arbitrum) [DAO](https://iq.wiki/wiki/dao). It exists on [Arbitrum One](https://iq.wiki/wiki/arbitrum), a [Layer 2](https://iq.wiki/wiki/layer-2) [rollup](https://iq.wiki/wiki/rollup) chain. It enables token holders to vote on governance proposals that impact the [Arbitrum One and Arbitrum Nova](https://iq.wiki/wiki/arbitrum) networks, including protocol upgrades and treasury allocations.\n\nVoting power is proportional to the amount of $ARB held or delegated, with [smart contracts](https://iq.wiki/wiki/smart-contract) enforcing token-weighted governance. Delegation allows token holders to assign their voting rights to others without transferring ownership. The token launched with a fixed supply of 10 billion, with the possibility of annual inflation capped at 2%, subject to [DAO](https://iq.wiki/wiki/dao) approval through constitutional proposals. [\\[14\\]](#cite-id-nK0MwK8dik)\n\n# Tokenomics and Airdrop\n\nOn March 16, 2023, [Arbitrum](https://iq.wiki/wiki/arbitrum) announced the launch of the new governance token, ARB, and a self-executing [DAO](https://iq.wiki/wiki/dao) governance model.\n\n> “Today, the Arbitrum Foundation is extremely excited to announce the launch of DAO governance for the Arbitrum One and Arbitrum Nova networks, alongside the launch of ARB,” - the team tweeted.\n\nThe $ARB [airdrop](https://iq.wiki/wiki/airdrop) claim started on the **Arbitrum One** chain on March 23, 2023. The [airdrop](https://iq.wiki/wiki/airdrop) is estimated to end on September 23rd, 2023. Based on data taken on a snapshot on February 6, 2023, 12.75% of the total supply was allocated to the [Arbitrum](https://iq.wiki/wiki/arbitrum) [Airdrop](https://iq.wiki/wiki/airdrop). The initial supply of the $ARB token is 10 billion. [\\[3\\]](#cite-id-bd3dl795oe8) [\\[4\\]](#cite-id-p8rcrywxono)\n\n## Initial Token Allocation\n\n| Percentage of initial supply | Number of tokens | Allocated to || ---------------------------- | ---------------- | ------------ || 42.78% | 4.278 billion | Arbitrum DAO treasury || 26.94% | 2.694 billion | Offchain Labs Team and Future Team + Advisors || 17.53% | 1.753 billion | Offchain Labs investors || 11.62% | 1.162 billion | Users of the Arbitrum platform (via airdrop to user wallet addresses) || 1.13% | 113 million | DAOs building apps on Arbitrum (via airdrop to DAO treasury addresses) |\n\n$$widget0 [YOUTUBE@VID](G7TaFOxnOsA)$$\n\n# AIP-1 Controversy and Governance Reforms\n\nOn April 1, 2023, a proposal known as AIP-1 was introduced to the Arbitrum DAO community, seeking approval to transfer 750 million ARB tokens—worth nearly $1 billion—to the [Arbitrum](https://iq.wiki/wiki/arbitrum) Foundation. The tokens fund administrative expenses, special grants, and reimbursements. However, the proposal sparked backlash due to concerns over its broad scope and the Foundation’s control over many funds. Community members were especially critical upon discovering that a significant portion of the tokens had already been moved before the vote concluded.\n\nSpecifically:\n\n* 750 million ARB were transferred to a separate treasury without prior approval.\n* 40 million ARB were loaned to a financial institution.\n* 10 million ARB were converted to [fiat](https://iq.wiki/wiki/fiat-money) for operational use.\n\nBlockworks Research, among others, voted against the proposal, citing a lack of transparency around fund management and unknown wallet signers. [\\[7\\]](#cite-id-f2as0txcbop)\n\n## Foundation Response\n\nOn April 2, the [Arbitrum](https://iq.wiki/wiki/arbitrum) Foundation acknowledged the criticism and stated that AIP-1 was unlikely to pass. In response, the Foundation announced plans to break the proposal into smaller parts so the community could vote on each section individually. A separate vote would be held for the 750 million ARB transfer, and the Foundation proposed introducing measures such as a four-year vesting schedule to improve accountability.\n\nThey also rebranded the Special Grants program to the \"Ecosystem Development Fund\" and committed to more transparency about fund use. The Foundation clarified that tokens sold so far were only to cover current operating expenses and pledged not to sell more soon. [\\[8\\]](#cite-id-6nmvio0gtbj) [\\[9\\]](#cite-id-jepilhpls19)\n\n## New Governance Proposals\n\nOn April 5, the Foundation released drafts of two new proposals:\n\n* **AIP-1.1** focuses on setting a smart contract lockup schedule, budget allocations, and transparency requirements.\n* **AIP-1.2** proposes amendments to the founding documents and lowers the threshold for submitting proposals from 5 million ARB to 1 million ARB, improving accessibility to governance.\n\nThe Foundation stated it would not move any of the remaining 700 million ARB until the [DAO](https://iq.wiki/wiki/dao) approves a formal budget and lockup schedule. These proposals were published for public feedback and scheduled for a snapshot vote after a 72-hour discussion. [\\[12\\]](#cite-id-jny9tb966b) [\\[13\\]](#cite-id-j5bqsnsud8)","summary":"ARB (Arbitrum) is a native governance token used for paying transaction fees and participating in decision-making processes on the Arbitrum network.","images":[{"id":"QmYSdYU3F16T6tiz66nFVnHjyGeeTWNczx636Hv5iymfjf","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[{"id":"Protocols"}],"media":[{"id":"https://www.youtube.com/watch?v=G7TaFOxnOsA","size":"0","name":"G7TaFOxnOsA","type":null,"source":"YOUTUBE"},{"id":"QmVqh1LxjAArKqAnbhNYgXJDKQFVSiWHcrc5YmHkD3rHBt","size":"0.06","name":"image","type":"GALLERY","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[{\"id\":\"v6ymqnf860p\",\"url\":\"https://twitter.com/arbitrum/status/1636362096714690562\",\"description\":\"arbitrum announcement\",\"timestamp\":1680695397850},{\"id\":\"bvjizbb8cg5\",\"url\":\"https://twitter.com/arbitrum/status/1638888588443111425\",\"description\":\"airdrop tweet\",\"timestamp\":1680695525874},{\"id\":\"bd3dl795oe8\",\"url\":\"https://arbitrumfoundation.medium.com/arbitrum-the-next-phase-of-decentralization-e7f8b37b5226\",\"description\":\"Medium - ARB \",\"timestamp\":1680695778281},{\"id\":\"p8rcrywxono\",\"url\":\"https://www.coingecko.com/en/coins/arbitrum\",\"description\":\"coingecko - arb\",\"timestamp\":1680698208271},{\"id\":\"nrypyg7lwf\",\"url\":\"https://coinmarketcap.com/currencies/arbitrum/\",\"description\":\"cmc-arb\",\"timestamp\":1680698231614},{\"id\":\"vxiyhkjo1ip\",\"url\":\"https://docs.arbitrum.foundation/dao-glossary#arbitrum-rollup-chain\",\"description\":\"airdrop documentation\",\"timestamp\":1680699391859},{\"id\":\"f2as0txcbop\",\"url\":\"https://blockworks.co/news/arbitrum-walks-back-proposal\",\"description\":\" \",\"timestamp\":1680915010264},{\"id\":\"6nmvio0gtbj\",\"url\":\"https://cointelegraph.com/news/arbitrum-to-break-up-governance-votes-after-community-backlash\",\"description\":\" \",\"timestamp\":1680915030874},{\"id\":\"jepilhpls19\",\"url\":\"https://forum.arbitrum.foundation/t/clarity-around-the-ratification-of-aip-1/12864\",\"description\":\" \",\"timestamp\":1680915087590},{\"id\":\"17cx0fph4ap\",\"url\":\"https://twitter.com/arbitrum/status/1642653013062868992\",\"description\":\" \",\"timestamp\":1680915195703},{\"id\":\"qzsm9ttz38\",\"url\":\"https://www.coindesk.com/business/2023/04/02/arbitrum-foundation-scraps-vote-pledges-redo-after-arb-tokenholders-revolt/\",\"description\":\" \",\"timestamp\":1680915402891},{\"id\":\"jny9tb966b\",\"url\":\"https://twitter.com/arbitrum/status/1643699348683870211\",\"description\":\" \",\"timestamp\":1680915452236},{\"id\":\"j5bqsnsud8\",\"url\":\"https://docs.arbitrum.foundation/foundational-documents/transparency-report-initial-foundation-setup\",\"description\":\" \",\"timestamp\":1680915488617},{\"id\":\"nK0MwK8dik\",\"description\":\"ARB Token | Arbitrum Docs\",\"timestamp\":1749667907710,\"url\":\"https://docs.arbitrum.foundation/concepts/arb-token\"}]"},{"id":"website","value":"https://arbitrum.foundation/"},{"id":"twitter_profile","value":"https://twitter.com/arbitrum"},{"id":"discord_profile","value":"https://discord.com/invite/arbitrum"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/arbitrum/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/arbitrum"},{"id":"medium_profile","value":"https://arbitrumfoundation.medium.com/"},{"id":"contract_url","value":"https://arbiscan.io/token/0x912ce59144191c1204e64559fe8253a0e49e6548"},{"id":"arbiscan","value":"https://arbiscan.io/token/0x912ce59144191c1204e64559fe8253a0e49e6548"},{"id":"etherscan","value":"https://etherscan.io/token/0xb50721bcf8d664c30412cfbc6cf7a15145234ad1"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmUvAaMXhdtkje4iVSmtpFAvJGvcArvxLqaQxV8hp2LD6b\""},{"id":"commit-message","value":"\"Refactor ARB article: Add token overview, improve structure, detail governance reforms.\""},{"id":"previous_cid","value":"QmUvAaMXhdtkje4iVSmtpFAvJGvcArvxLqaQxV8hp2LD6b"}],"events":[{"id":"x2hHwSZPvv","date":"2023-03","title":"Token Launch","type":"CREATED","description":" ","link":"https://bitcoinist.com/arbitrum-announces-the-launch-of-its-new-token-arb/#:~:text=The%20Arbitrum%20Foundation%20has%20announced,go%20live%20on%20March%2023."}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"},"language":"en","version":1,"linkedWikis":{"blockchains":["arbitrum"],"founders":["ed-felten","steven-goldfeder","harry-kalodner"],"speakers":[]}}