Arbitrum

Halal Rating :
Comfortable
Last Price $0.78 Last updated:
Rank 42
1D Change 9.18 %
Market Cap $3.28b
Circulating supply 4,210,111,968
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

Project 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 was launched in March 2023 as the native token of the Arbitrum network.

Intended Utility

The ARB token serves multiple legitimate purposes: 1) Governance token for the Arbitrum DAO, allowing holders to vote on protocol upgrades and treasury management 2) Gas fee payments within the Arbitrum ecosystem 3) Security mechanism through staking.

Actual Utility & Adoption

Arbitrum has demonstrated significant real-world adoption and utility: 1) It is currently one of the largest Layer 2 solutions with over $2.5B in Total Value Locked (TVL) 2) Hosts hundreds of decentralized applications 3) Processes millions of transactions monthly 4) Has active governance participation with regular proposal voting.

Token Distribution & Founder Alignment

The token distribution shows a balanced approach: 42.78% to the DAO treasury, 26.94% to Offchain Labs team and investors (with 4-year vesting), 17.53% to users via airdrop, and 12.75% to DAOs building on Arbitrum. The vesting schedule helps align long-term incentives.

Development Activity

The project maintains active development with regular updates to the protocol, documented on their Github repository. The team consistently delivers technical improvements and ecosystem support.

Revenue Model

The protocol generates revenue through transaction fees, which are used to support network operations and development. This model does not involve interest (riba) or prohibited activities.

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.

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