Arbitrum: $ARB Token Economics Explained and Quick Valuation

2023/03/17 08:03
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Note: This article comes from @NintendoDoomed Twitter, and MarsBit organizes it as follows:

Detailed explanation and quick valuation of $ARB token economics

Initial total amount: 10B (the total amount is not the circulation)

Inflation: up to 2% per annum

Forging and destruction mechanism: L2 can only contract

Can be bridged to L1 : Yes

Tokens issued on: Arbitrum One

On-chain governance at: Arbitrum One

Airdrop snapshot time: February 6, 2023


The initial token distribution is as shown in the figure below, and the estimated initial circulation

1. User

2. Ecological developers (ie DAOs)

3. A small part of treasury, team and investors

Estimated to be between 1-2B




Circulating market value = 0.8B

Full circulation market value = 10.5B

$Matic $Sol The full circulation market value is also around $10B

Arbitrum's TVL has been 1.7 times that of OP without incentives, achieving vigorous organic growth.

If the OP is given 2 times the FDV, it is 21B, and the corresponding token price is $2.1.


Reasons for higher valuation: L2 leader, rare organic growth and healthy ecology, relatively high certainty

The reason for the lower valuation: The airdrop boutique account is not much different from the Lumao account, and the initial circulation is relatively high, which may lead to greater initial selling pressure.

Addendum: $ARB Token Economics Documentation


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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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