ARbit
Crypto Overview
Overview
Arbitrum (ARB) is the native governance token of the Arbitrum network, a Layer 2 scaling solution for Ethereum launched in March 2023. The token's primary purpose is to enable decentralized governance of the Arbitrum ecosystem through the Arbitrum DAO.
Purpose and Utility
The ARB token serves several key functions: Governance rights for protocol decisions, rewards distribution to stakeholders, and facilitation of the ecosystem's growth. Token holders can propose and vote on protocol upgrades, fee structures, and other important ecosystem decisions.
Business Model and Implementation
Arbitrum's business model centers on providing faster and cheaper transactions compared to Ethereum's main network while maintaining security. The platform generates revenue through transaction fees, which are distributed to various stakeholders based on governance decisions.
Real-World Adoption
Arbitrum has achieved significant adoption, becoming one of the largest Layer 2 solutions by Total Value Locked (TVL). The network hosts numerous decentralized applications and has established partnerships with major crypto projects.
Token Distribution
The initial token distribution allocated 42.78% to the DAO treasury, 26.94% to investors, 17.53% to team members with a 4-year vesting period, and 11.62% to users through an airdrop. The vesting schedules and lock-up periods appear designed to prevent sudden selling pressure.
Development Activity
The platform maintains active development with regular updates and improvements. The team consistently delivers on technical roadmap items and maintains transparent communication about development progress.
Crypto Impact
To assign a comfort level investing in ARbit from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to ARbit.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.