The Arbitrum AirDrop is undoubtedly the biggest hot spot recently, and the secondary market is concerned with nothing more than the valuation and circulation of the project. As the date of currency issuance approaches, the discussion on the value of ARB in the market is becoming more and more heated. Recently, there have been rumors in the community that 55% of the total ARB tokens will be unlocked simultaneously during the AirDrop. This rumor is based on the Token unlocking data aggregation website Token.unlocks, but is it so outrageous? After reviewing the relevant information, BlockBeats found that there was an obvious misunderstanding, and the official has already mentioned this in the document.
According to Arbitrum's official Medium article "ARBITRUM: THE NEXT PHASE OF DECENTRALIZATION" published on March 16, user and DAO AirDrop will be provided within a week (12.75%), and all investors and team tokens (54.47%) will be There is a 4-year Vesting period, with the first unlock occurring within one year and then monthly unlocks for the remaining three years.
Text source: Arbitrum Official Medium
Literally, the ratio of user airdrops to DAO AirDrop of various projects in the Arbitrum ecosystem is 12.75%, plus 42.78% allocated to the Arbitrum DAO treasury, a total of 55.53% of Tokens are not locked in the contract.
Data source: Arbitrum official documentation
Will the 42.78% ARB held by Arbitrum be used to smash the market?
However, the official document also introduces the relevant charter of Arbitrum DAO , which describes the governance structure and governance process of Arbitrum DAO in detail. According to the AIP-1 proposal, in order to provide ArbitrumDAO with effective governance and the ability to promote the development of the governance chain, the Arbitrum Foundation has transferred 3,527,046,079 ARBs to the DAO treasury. ArbitrumDAO will have direct on-chain governance over the DAO treasury.
In addition, in order to improve operational and administrative efficiency, a separate account ("Administrative Budget Wallet") controlled by the Arbitrum Foundation will be created. 750,000,000 ARB will be transferred to the Administrative Budget Wallet to provide special grants, reimburse applicable service providers for total setup costs, and cover the ongoing administrative and operational costs of the Arbitrum Foundation. Further funds from the Executive Budget Wallet are subject to approval by ArbitrumDAO under the AIP process.
Source: Arbitrum DAO AIP-1 Proposal
Responsibilities of the Arbitrum DAO
Arbitrum DAO is a Decentralized Autonomous Organization (DAO) built on the Ethereum blockchain. At its core, Arbitrum DAO is a community-driven governance mechanism that allows ARB Token holders to propose and vote on changes to the organization and its governance mechanisms.
Arbitrum DAO's governance smart contract is implemented on the Arbitrum One summary chain, which is a Layer 2 scaling solution for Ethereum. These smart contracts include DAO's governance token, ARB. DAO members use ARB Token to vote on the Arbitrum DAO Proposal (AIP). The weight of any given voter's vote is proportional to the amount of ARB they hold (or represent).
The Arbitrum DAO has a built-in treasury system ( implemented as a smart contract ); the DAO's treasury is used to fund the ongoing development and maintenance of the organization and its technology. Token holders can propose and vote on how to use treasury funds.
In other words, although more than 42% of the ARB tokens in the treasury are directly unlocked, it is obvious that this part is an ecological fund, which is used for the development of the Arbitrum ecology, and it is impossible to smash the market.
It is not the first case that the treasury directly unlocks this kind of operation. For example, in the Token distribution of the decentralized custody agreement and digital asset management platform Safe (formerly Gnosis Safe) , 5% (50 million tokens) belonging to the GnosisDAO&SafeDAO joint treasury also has no Vesting period, directly and fully unlocked.
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