đŸ”č Arbitrum (ARB) : Everything you need to know about the token of Ethereum's Layer 2 solution

Introduction :


Arbitrum is a Layer 2 scalability solution for Ethereum, designed to improve network performance in terms of speed and transaction fees. Launched by Offchain Labs, Arbitrum uses a technology called Optimistic Rollups to group transactions and validate them off the main chain of $ETH before sending them back in a condensed form on the main network (Layer 1). The native token of this ecosystem is the $ARB .


1. What is Arbitrum ?


Arbitrum is a Layer 2 blockchain that operates above the Ethereum blockchain. It was created to :


  • Reduce transaction fees.

  • Increase transaction speed.

  • Maintain a high level of security by inheriting Ethereum's security.


Arbitrum offers several versions of its network, including Arbitrum One (the main version) and Arbitrum Nova (optimized for social and gaming applications with ultra-low fees).

2. The ARB token : role and utility

The ARB token was officially launched in March 2023 through a massive airdrop aimed at rewarding early users of the network. It is not a classic utility token like ETH for gas: ARB is primarily a governance token.

The main uses of the ARB token :

  • Decentralized governance through the Arbitrum DAO.

  • Vote on protocol improvement proposals.

  • Funding projects via the community treasury (several billion tokens are available to subsidize ecosystem initiatives).

3. Technical operation

Optimistic Rollups :


Arbitrum uses Optimistic Rollups, a technology that allows multiple transactions to be grouped into one, which is then validated on Ethereum. Transactions are considered valid by default, unless a fraud proof is submitted within a defined period.


Compatibility with Ethereum :

  • Compatible with EVM (Ethereum Virtual Machine).

  • Ethereum smart contracts can be deployed on Arbitrum without modification.

  • Interoperability facilitated with Ethereum wallets and dApps.



4. The Arbitrum ecosystem


Arbitrum is experiencing massive adoption in the DeFi world:

  • Major platforms like Uniswap, Aave, GMX, SushiSwap are deployed there.

  • Arbitrum is one of the Layer 2s with the highest TVL (Total Value Locked).

  • A rapidly growing community with NFT, gaming, DeFi initiatives, etc.



5. Economic data of the ARB token

  • Ticker : ARB

  • Total supply : 10 billion

  • Circulating supply (2025) : Approximately 2 to 3 billion (varies according to unlocks)

  • Token type : ERC-20

Tokenomics :

  • 11.6% : Airdrop to the community

  • 42.7% : DAO Treasury

  • 17.5% : Team & advisors

  • 1.1% : Investor

  • 27.1% : Future adoption


Tokens are subject to progressive vesting until 2027.


6. Advantages and disadvantages :

✅ Advantages :

  • Low fees and high speed

  • Strong adoption in DeFi

  • Decentralization through DAO governance

  • Full interoperability with Ethereum


❌ Disadvantages :


  • The ARB token is not used for paying fees (this role remains for ETH)

  • Complexity of governance models

  • Risks associated with rollups (fraud, smart contract bugs)



7. Perspectives and future


With the rise of Layer 2 solutions and the growing need for decentralization, Arbitrum is well positioned to play a central role in the future of Ethereum. The introduction of governance staking, the development of Arbitrum Stylus (support for Rust and C/C++) and new DAO initiatives suggest continued expansion.


Conclusion :


Arbitrum (ARB) is more than just a token: it is the key to governance of a rapidly expanding Layer 2 ecosystem. As the adoption of Ethereum continues to grow, solutions like Arbitrum are essential to ensure the scalability of Web3. The ARB token, although focused on governance, could see its value grow alongside the usage and evolution of the Arbitrum ecosystem.