Is @arbitrum the King of all Layer 2s? Part 13 of my deep dive research series will be on $ARB. P.S. I promise this is NOT another airdrop thread. 🧵🚀 1/28

Let’s dive in… • $ARB • Price = $1.22 • ETH Layer 2- Rollup chain • Market cap = $1.55b – Rank 40 • All time high = $8.67 (-86%) • All time low= $1.11 (+10%) 2/28

Unless you have been hiding under a rock, you would know that Arbitrum’s much anticipated airdrop was rolled out last week. Here is how @rektdiomedes played it. 3/28 twitter.com/147095542508423578...

Arbitrum is an Ethereum scaling solution, or Layer 2, that uses rollup technology to enable faster and cheaper transactions. It has quickly become many a degens favourite chain and adoption continues to surge. 4/28

1. Revenue Arbitrum comes in 3rd overall for 7-day revenues – only behind Ethereum and Tron. Over the last 24hrs numbers are … • Revenue = $57.8k • Fees = $216.8k Massive spike in activity due to the airdrop last week- numbers are now stabilising. 9 for Revenue. 5/28

2. Treasury The Arbitrum DAO Treasury was allocated 42.78% of the initial supply. At today’s prices this is equivalent to • 4.278 b x $1.20 • $5.13b USD Most of this will be used to support ecosystem projects. This is very bullish for Arbitrum growth. 9 for Treasury. 6/28

3. Tokenomics The initial distribution of $ARB is • 17.53% - Investors • 1.13% - DAOs in Arbitrum Ecosystem (airdrop) • 11.62% - Individual Wallets (airdrop) • 42.78% - DAO Treasury • 26.94% - Team + Future Team + Advisors Token supply= max inflation 2% per year 7/28

$ARB is purely designed as a governance token for both chains • Arbitrum One • Arbitrum Nova It is not intended to be used for gas fees or anything else, only $ETH will be used. You may be asking why does ARB need a token then? The key answer is decentralisation. 8/28

In order for the project to transition away from centralised control (Offchain labs), a decentralised governance process needs to be put in place to manage future upgrades and improvements. On the balance, I think launching a token was the right move. 8 for tokenomics 9/28

4. Locked up funds These are the current supply stats • Initial supply = 10b • Circulating supply = 1.275b • Market cap = $1.55b • FDV = $12.15b • Market cap/ FDV = 0.13 10/28

So far, only 12.75 % of tokens are in circulation – those that were airdropped to individual user wallets and DAOs in the Arb ecosystem. The remaining investor and team tokens are subject to 4-yr lockups as per @Token_Unlocks ... 11/28

• First unlock in 1 year • Monthly unlocks for remaining 3 years This potentially could bring sell pressure on these unlock events. However, the vesting is well spread out so should not be a major issue. 7 for locked up funds. 12/28

5. Use case Total TVL is sitting just under $3b- a new ATH. Arbitrum is 4th amongst all chains only behind Ethereum, Tron & BSC. 13/28

Arbitrum has developed a thriving ecosystem of over 262 protocols with some of DeFi’s most innovative projects building on the platform. Including • GMX • Gains Network • Radiant • Camelot Great thread from @ThorHartvigsen around top Arb projects. 14/28 twitter.com/3039445715/status/...

Daily active users are in a strong uptrend, spiking due to the airdrop. Settling at a higher base level of around 200k. 9 for Use case. 15/28

6. Roadmap Arbitrum have recently delivered on some key milestones • Arbitrum Nova launched (Aug ’22) • Launch of the Arbitrum Foundation and DAO Governance (Mar ’23) • Arbitrum Orbit- Launch Layer 3 chains (Mar ’23) • Airdrop (Mar ’23) 16/28

What is next for Arbitrum? • EIP-4844 -reduce the cost of using rollups • DAO decentralization and elimination of whitelist • Achieving final stage of the decentralization roadmap 17/28

A great summary by @ReveloIntel of the Bankless interview of founders Steven Goldfeder & Harry Kalodnerto. revelointel.com/bankless-shows... 8 for Roadmap. 18/28

7. Team & funding The Arbitration Chamber was founded by Ed Felten, Steven Goldfeder and Harry Kalodner. The project was initially run by Offchain Labs and the Arbitrum Foundation. In March 2023, the Arbitrum DAO was launched to govern the Arbitrum One & New chains. 19/28

Here are some key features of the DAO • Self-executing DAO Governance • Emergency situations to be dealt with by Arbitrum Security Council (12-member multisig) • 56% ownership by community arbitrumfoundation.medium.com/... 20/28

Not surprisingly, the project is backed by some hefty hitters including Pantera, Polychain and coinbase. Investors were allocated a total of 17.5% of token distribution. 8.5 for Team & Funding. 21/28

8. Summary TLDR summary for each category’s score out of 10. 9 - Revenue – $58k daily revenue 9 - Treasury– $5.1b in Treasury 8 - Tokenomics – 10b token supply, max 2% inflation 7 - Locked up funds – Only 13% tokens in circulation 22/28

9 - Use case – $2.9b TVL, users increasing 8 - Road map – EIP-4844, DAO decentralisation 8.5 – Team & funding – Arbitrum DAO governance launched TOTAL- 8.6 weighted avg. score You can view all my previous deep dive ratings for free below. docs.google.com/spreadsheets/d... 23/28

Arbitrum is currently the hottest Layer 2 scaling solution. The recent airdrop has generated huge hype and the decentralised governance forum will help to sustainably grow the ecosystem. 24/28

However, the L2 space is ripe with innovation and many chains and dapps are being launched using the zero-knowledge proof technology which many consider superior. Only time will tell if Arbitrum can fend of these competitors. 25/28

The purpose of this thread is for education and research- not financial advice. Always DYOR before Apeing in. Here is a framework I prepared earlier. The current macro conditions are still very choppy so stay safe out there frens. 26/28 twitter.com/146697167738903757...

Tagging some Arbinauts to follow for all the alpha. @alpha_pls @rektdiomedes @rektfencer @ThorHartvigsen @Route2FI @drakeondigital @ArbiAlpha @Dynamo_Patrick @LouisCooper_ @thedefiedge @milesdeutscher @jediblocmates @TheDeFISaint @ReveloIntel @crypto_linn 27/28

@arbitrum @TheDeFinvestor @danblocmates @DeFiMann @CryptoShiro_ 28/28

@arbitrum @TheDeFinvestor @danblocmates @DeFiMann @CryptoShiro_ That's a wrap! If you enjoyed this thread: 1. Follow me @jake_pahor for more of these 2. RT the tweet below to share this thread with your audience twitter.com/146697167738903757...