$ARB
Arbitrum (ARB) is a governance token for Arbitrum, a layer-2 scaling solution for Ethereum, launched by Offchain Labs in 2021. The platform is designed to improve Ethereum's scalability, reduce transaction fees, and enhance processing speeds by using **Optimistic Rollup technology**. This approach processes transactions off-chain while maintaining the security of the Ethereum blockchain by validating them on-chain.
### Key Features and Role
- **Governance**: ARB holders participate in decision-making via the Arbitrum DAO, voting on proposals related to network upgrades, resource allocation, and the election of a Security Council for emergency actions.
- **Scalability**: By processing transactions off-chain and posting results to Ethereum, Arbitrum supports decentralized finance (DeFi), NFTs, and other Ethereum-based applications, reducing network congestion and gas fees.
- **Ecosystem Integration**: The platform integrates with many major decentralized applications, making it a cornerstone for Ethereum scalability.
### Tokenomics
ARB has a fixed supply and has undergone planned token unlocks to increase market liquidity gradually. This method aligns with its goal of fostering a decentralized, community-governed ecosystem.
Arbitrum's continued innovation and its compatibility with Ethereum-based applications have made it one of the leading layer-2 solutions. However, as competition grows, its adoption will depend on its ability to maintain efficiency and attract developers.
