Arbitrum
Crypto Overview
Overview
Arbitrum is a Layer 2 scaling solution for Ethereum that aims to reduce transaction fees and increase throughput while maintaining Ethereum's security. The ARB token was launched in March 2023 as the native token of the Arbitrum network.
Intended Utility
The ARB token serves as a governance token for the Arbitrum DAO, allowing holders to vote on protocol upgrades, fee structures, and other network parameters. It is also used for paying transaction fees on the network.
Actual Utility & Adoption
Arbitrum has demonstrated significant real-world adoption, with over $2.5 billion in Total Value Locked (TVL) as of 2024. The network processes millions of transactions monthly and hosts hundreds of decentralized applications. Developer activity remains high with regular protocol improvements.
Token Distribution Analysis
The initial token distribution allocated: 42.78% to the DAO treasury, 26.94% to core contributors and investors (subject to 4-year vesting), 17.53% to users via airdrop, and 12.75% to the Arbitrum Foundation. The vesting schedule helps prevent sudden selling pressure.
Technology & Revenue Model
The platform generates revenue through transaction fees, which are distributed to validators and the DAO treasury. The technology focuses on scaling Ethereum transactions without compromising security or decentralization.
Founder Assessment
The team behind Arbitrum (Offchain Labs) has strong technical backgrounds and consistent development history. There is no evidence of previous failed projects or unethical behavior.
Crypto Impact
To assign a comfort level investing in Arbitrum 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 Arbitrum.
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.