Arbitrum

Halal Rating :
Comfortable
Last Price $0.78 Last updated:
Rank 45
1D Change 3.77 %
Market Cap $3.4b
Circulating supply 4,343,862,574
Maximum supply None
Crypto Overview Crypto Impact

Crypto Overview

Categories
  • Scaling
  • DAO
  • DApp
  • Ethereum Ecosystem
  • Polychain Capital Portfolio
  • Layer 2
  • Rollups
  • Pantera Capital Portfolio
  • Arbitrum Ecosystem
  • Osmosis Ecosystem
  • Modular Blockchain
  • eGirl Capital Portfolio

Overview

Arbitrum is a Layer 2 scaling solution for Ethereum that aims to reduce transaction costs and increase throughput while maintaining Ethereum's security. The ARB token, launched in March 2023, serves as the native governance token of the Arbitrum ecosystem.

Purpose and Utility

The primary purpose of ARB is to enable decentralized governance of the Arbitrum One and Arbitrum Nova networks. Token holders can vote on protocol upgrades, fee mechanisms, and other crucial aspects of the network. Additionally, the token is used for paying transaction fees within the Arbitrum ecosystem.

Business Model and Implementation

Arbitrum's business model revolves around providing efficient blockchain infrastructure. The platform generates revenue through transaction fees, which are distributed to various stakeholders including validators and the DAO treasury. The system operates transparently, with all operations visible on-chain.

Real-World Adoption

Arbitrum has achieved significant adoption, becoming one of the largest Layer 2 solutions for Ethereum. As of 2024, it hosts numerous decentralized applications and maintains substantial total value locked (TVL). Major DeFi protocols, NFT platforms, and gaming applications actively operate on Arbitrum.

Token Distribution

The token distribution includes allocations to the DAO treasury, team members, investors, and users. Team tokens are subject to a four-year vesting schedule, demonstrating long-term commitment. The majority of tokens (42.78%) were allocated to the DAO treasury, with 26.94% for users via airdrop, and the remainder distributed among team members and investors.

Development Activity

The platform maintains active development with regular updates and improvements. The development team consistently pushes updates to the protocol, and the ecosystem continues to expand with new applications and services.

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.

Contribute