ARB Coin: The heart of the Arbitrum system.
ARB is the native cryptocurrency of the Arbitrum network, one of the most important solutions.
Layer 2 built on the Ethereum blockchain.
The primary goal is to address congestion issues and high costs (gas fees) on the main Ethereum network (Layer 1) by executing transactions off the main chain and then recording their results on it in a consolidated manner.
Token: ARB
Blockchain: Arbitrum (Layer 2 on Ethereum - L2)
Primary Goal: Network Governance.
Launch Date: March 2023.
Total supply: 10 billion ARB.
The main functions of ARB currency.
1. Governance: This is the most important function of ARB. ARB represents the voting rights within the decentralized Arbitrum DAO. ARB holders can:
. Voting on proposals that determine the future of the Arbitrum network.
. Proposing significant changes (such as protocol upgrades, treasury allocation, and selecting service providers).
. Influencing funding and environmental development decisions (Ecosystem).
. The distribution of ARB is a key step towards decentralizing the governance of the network.
2. Payment of Transaction Fees (Gas Fees): While most gas fees on the Arbitrum network are paid in Ethereum (ETH), there are discussions and proposals about the possibility of using ARB to pay a portion of these fees in the future, which could enhance its utility and demand.
3. Rewards and Incentives: ARB can be used within various incentive programs in the Arbitrum environment, such as:
. Rewards for Service Providers (Validators/Sequencers).
. Yield programs for users participating in liquidity mining or staking on DeFi platforms built on Arbitrum.
. Rewards for developers and projects building on the network.
The importance of ARB and its connection to the success of Arbitrum.
. Governance Model: The presence of an active and strong DAO managed by ARB is vital for the sustainability and decentralization of the network in the long term, attracting trust from users and developers.
. Economic Alignment: Holding ARB connects the interests of holders (the community) with the success of the Arbitrum network itself. The more the network thrives and is used, the greater the potential value of ARB (theoretically).
. Attracting applications and users: A transparent governance system based on ARB can be an attractive factor for projects looking for a decentralized environment. Additionally, incentive programs using ARB promote growth.
Challenges and Risks.
. Market Volatility: Like all cryptocurrencies, the price of ARB is subject to significant fluctuations.
. Competition: Arbitrum faces fierce competition from other Layer 2 solutions (such as Optimism, Base, zkSync, Polygon zkEVM) and competition from Ethereum itself post-upgrades.
. Governance Adoption Risks: The effectiveness and fairness of the DAO depend on broad and fair community participation, which is a challenge for all DAO projects.
. Technology Risks: Any security vulnerabilities or failures in the Arbitrum network could negatively impact investor confidence in ARB.
An engraved image in diamond stone with raised letters for ARB currency that is similar to reality and sparkling like jewels.