Ethereum Scaling Solution Arbitrum Airdrops $120 Million ARB Tokens to DAOs
Arbitrum, an Ethereum scaling solution, has distributed $120 million worth of ARB tokens to decentralized autonomous organizations (DAOs) within its ecosystem. Reports show that around 100 million ARB tokens were transferred to eligible protocol addresses. Initially, around 113 million ARB tokens were allocated to 125 DAOs. The token distribution for the Airdrop is expected to be completed by the end of this week.
Recipients of the ARB tokens include leading protocols such as Treasure DAO, SushiSwap, Dopex, Radiant, and Balancer, with Treasure DAO and GMX each receiving 8 million ARB tokens. The Arbitrum team has allotted 118 additional ecosystem projects for the ARB Airdrop. Mechanism Capital co-founder Andrew Kang believes that such an Airdrop could help boost the liquidity across Arbitrum DeFi projects, pointing out that on Layer-1 platforms, incentives had provided at least “100%+ APY” within the ecosystem. The aim of the airdrop implementation is to localize community governance and provide additional incentives for smaller market caps to prosper. Through this airdrop, DAO treasuries get the independence to choose how to distribute their share of the airdrop, although retrospectively incentivizing liquidity & usage in the protocols lies among the many options available.
Experts also believe that opportunities lie for lesser-known DAO hopeful projects such as Vesta Finance, PlutusDAO, and Yin Finance, each of which responded warmly to the ARB incentives on offer. Will this ARB airdrop to DAOs provide a lot of opportunities for building decentralized financial protocols? Only time can tell.
[h/t Nivesh Rustgi]