Summary:
- Ethereum’s leading Layer 2 scaling network Arbitrum started distributing its ARB governance token to DAOs in its ecosystem.
- Trading venues GMX, Uniswap, and Sushiswap are among several eligible decentralized autonomous organizations or DAOs within Arbitrum’s ecosystem.
- The project allocated 1.13% of its 10 billion supply towards these DAOs after announcing its governance airdrop in March.
Ethereum’s leading Layer 2 scaling network Arbitrum started distributing its ARB governance token to DAOs in its ecosystem weeks after it airdropped free coins to eligible users as a reward for supporting the chain.
DeFi projects like Aave, Uniswap, GMX, SushiSwap, TreasureDAO, Balancer, Layer Zero, 1inch, MakerDAO, Curve, and Gains Network to name a few all feature among eligible decentralized autonomous organizations or DAOs set to receive ARB tokens from the scaling solution.
Arbitrum previously allocated 1.13% of its 10 billion supply towards these DAOs after announcing its governance airdrop to network users and participants in March. This distribution is not to be mistaken with the airdrop sent to users or grants that the protocol’s own DAO would issue to other DAOs as part of the roadmap.
Last week, the protocol sent out test transactions to eligible DAOs. Those that confirmed receiving the mock transactions will receive full distribution, the L2 network noted in a tweet.
Arbitrum’s on-chain data also showed massive ARB token outflows from the Foundation’s address to over 125 DAO wallets. Per previous details from the airdrop, the DAO distribution boasts 113 million ARB tokens worth around $145 million at current prices. ARB traded above $1.32 on Tuesday, as seen on TradingView charts.
Arbitrum Moves Past AIP-1 Debacle
The Ethereum-based scaling solution was the subject of intense community backlash after a governance proposal that sought to allocate 750 million ARB to the Arbitrum Foundation was implemented before voting ended.
AIP-1‘s contentious vote was rectified in AIP-1.1 after the community approved the move, and the tokens were transferred to the administrative budget for special grants which is managed by the protocol’s self-governing DAO and its 12-member council.
