Altcoin Arbitrum has started token distribution to ecosystem DAOs. Arbitrum, Ethereum's leading Layer 2 network, has initiated the distribution of management token allocations to eligible decentralized autonomous entities in its ecosystem.
Altcoin Arbitrum Launches Token Distribution to Ecosystem DAOs
The Arbitrum team had previously identified 1.13% of the total supply of 10 billion tokens to be distributed among qualifying projects equivalent to 113 million ARB tokens with a current value exceeding $145 million.
This allocation for DAOs differs from the 11.6% of the token supply previously airdropped to early Arbitrum users in March.
Arbitrum has announced on Twitter that it is giving its first batch of tokens to DAOs, which have confirmed that they have received test transactions.
Meanwhile, on-chain data from Arbitrum showed that the foundation transferred a significant amount of ARB tokens to 125 DAO addresses today, with a few more distributions expected later.
Arbitrum's Layer 2 rival, Optimism, took a similar approach, distributing management tokens to projects in its ecosystem shortly after its launch in 2022.
Management tokens issued to DAOs can help boot activities on the Arbitrum network. Such allocations can be used as components of their treasury or for other purposes as decided by their communities through governance voting.
Projects that will receive tokens include GMX, TreasureDAO, SushiSwap, Uniswap, Aave, Hop Protocol, Radiant Capital, Balancer, Gains Network, Synapse, MakerDAO, Vesta, Curve, Layer Zero, 1inch, Swapr and others.
While the Arbitrum Foundation continues to support other DAOs in its ecosystem, it has encountered a brief controversy surrounding its own DAO.
The AIP-1 proposal was intended to transfer 750 million tokens to the foundation for capitalization, but was rejected due to reports that the foundation had already spent 50 million tokens without proper management authorization.
*Not investment advice.
