March 27 What is the Arbitrum (ARB)?
Arbitrum is an Ethereum layer-two scaling solution that leverages optimistic rollups to improve speed, scalability, and profitability, while maintaining Ethereum security and compatibility. It significantly reduces transaction fees and increases throughput by offloading most of the computation and storage off-chain. Arbitrum's native governance token, ARB, gives ARB holders governance privileges within Arbitrum's decentralized autonomous organization (DAO) framework, the Arbitrum DAO. ARB allows ARB holders to vote on protocol upgrades and other critical decisions, facilitating community-driven evolution of the platform.
Founded by Offchain Labs, Arbitrum has a development team rooted in academic and blockchain research, bringing a blend of expertise to the platform. The project's commitment to advancing Ethereum's scalability is evident in its ambitious 2023 roadmap, which introduced new layer three solutions and expanded development capabilities, strengthening Arbitrum's position as as an innovative player in the Ethereum ecosystem. This strategic direction, supported by a significant $120 million Series B funding round, demonstrates industry confidence in Arbitrum's potential to significantly impact the scalability and usability of Ethereum.
Arbitrum stands out for its optimistic rollup technology, providing seamless compatibility with existing Ethereum DApps, high transaction throughput, and a flexible development environment supporting various programming languages. Its decentralized network of validators, lacking centralized control for ordering transactions, underlines the platform's commitment to decentralization. The robustness of Arbitrum's ecosystem is further demonstrated by its diverse range of DApps, wallets and tools, making it a leading solution for improving Ethereum performance.
What is the ARB token?
The ARB token is the native governance token associated with Arbitrum, an Ethereum Layer-2 scaling solution. It plays a central role in the decentralized governance of the Arbitrum ecosystem through a structure known as the Arbitrum DAO. ARB token holders have the power to vote on key proposals that influence the direction and development of Arbitrum protocols, including Arbitrum One and Arbitrum Nova.
These proposals can range from improved functionality, protocol upgrades, allocation of funds, to the election of Security Council members who oversee certain emergency and administrative actions within the network. The ARB token facilitates community-led decision-making, ensuring that Arbitrum's evolution aligns with the collective interests of its users and stakeholders. The total supply of ARB tokens is fixed, highlighting its role in enabling a decentralized, secure, user-governed scaling solution for Ethereum applications.
Two weeks ago, on March 16, Arbitrum, a leading layer 2 scaling solution for Ethereum, launched a major token unlock event, releasing over $1 billion worth of ARB tokens on the market. This event marked the start of a four-year plan to gradually unfreeze the protocol's native digital asset, with the initial “unlocking the cliff” releasing 1.11 billion ARB tokens, which made up 87% of its supply in circulation at the time. At the prevailing market rate of $1.12 per ARB token, the amount unlocked was valued at approximately $1.24 billion. This release was part of a broader strategy to stagger the availability of previously frozen cryptocurrencies, aimed at regulating the impact of early investors or project team members potentially selling their holdings in large volumes.
The approach taken by Arbitrum involves a methodical release of tokens, with the protocol set to continue unlocking a specified quantity of tokens every four weeks over a four-year period, as reported by Token Unlocks. Such unlocks are designed to increase liquidity in the market, but are often seen as bearish triggers for the cryptocurrency's price due to the potential increase in selling pressure. Analysis of The tie suggest that unlocking tokens representing more than 100% of the average daily trading volume can put downward pressure on the price of the cryptocurrency.
ARB Tokenomics
![](https://blog.bitfinex.com/wp-content/uploads/2024/03/ARB-Tokenomics-1024x576.png)
How to buy ARB with cryptocurrencies
1. To log in on your Bitfinex account or register to create one.
2. Access the Deposit page.
3. In the Cryptocurrencies section, choose the crypto you plan to buy ARB with and generate a deposit address on the Exchange wallet.
4. Send the crypto to the generated deposit address.
5. Once the funds arrive in your wallet, you can exchange them for ARB. Learn to trade on Bitfinex here.
How to buy ARBs with Fiat
1. To log in on your Bitfinex account or register to create one.
2. You must obtain full verification to be able to deposit fiat into your Bitfinex account. Discover the different verification levels here.
3. On the Deposit page, in the Bank transfer menu, choose the fiat currency of your deposit. There is a minimum amount for fiat deposits on Bitfinex; learn more here.
4. Check your Bitfinex registered email address for transfer details.
5. Send the funds.
6. Once the funds arrive in your wallet, you can use them to purchase ARBs.
We also have Bitfinex on mobile, so you can easily buy ARB currency on the go.
(App store) (Google game)
ARB Community Channels
Website | X (Twitter) | Discord