Arbitrum Airdrops $120M worth of ARB Tokens to 125 DAOs, Boosting Liquidity for Smaller DeFi Protocols

Arbitrum, a scaling solution for Ethereum, has distributed $120 million worth of ARB tokens to 125 decentralized autonomous organizations (DAOs) within its ecosystem. Around 100 million ARB transfers were reported to eligible protocols by leading Ethereum analytics firms. Of the 125 DAOs, Treasure DAO and GMX received the highest allocated amount of 8 million ARB tokens each, followed by SushiSwap, Balance, Uniswap, Curve, and Dopex, which received between 3 and 5 million ARB tokens. The remaining 118 ecosystem protocols will receive the ARB airdrop in varying amounts. The DAOs have the independence to distribute their share of the ARB airdrop as they see fit, rewarding users retroactively or incentivizing liquidity and usage by rolling out fresh ARB incentives. The goal of the airdrop toward DAO treasuries is the "localization of community governance," allowing the DAOs to choose how to use the ARB tokens to strengthen their projects. Mechanism Capital co-founder Andrew Kang believes that the additional $130 million influx into the Arbitrum ecosystem could help boost liquidity across Arbitrum DeFi projects. The ARB incentives could benefit protocols with smaller market capitalizations the most, according to on-chain data analyst The Data Nerd.

(By Nivesh Rustgi)


All Comments

Recommended for you