March 27 What is Arbitrum (ARB)?
In code
Arbitrum, a layer 2 scaling solution for Ethereum, leverages optimistic pooling operations to enhance speed, scalability and cost-effectiveness, and maintain the security and compatibility of Ethereum. It significantly reduces transaction fees and increases throughput by offloading most of the calculations and storage off-chain. Arbitrum's native governance token, ARB, grants ARB holders governance privileges within the framework of Arbitrum's Decentralized Autonomous Organization (DAO), the Arbitrum DAO. ARB allows ARB holders to vote on protocol upgrades and other critical decisions, facilitating community-led evolution of the platform.
Founded by Offchain Labs, Arbitrum has a development team rooted in academia and blockchain research, bringing a mix of expertise to the platform. The project's dedication to enhancing Ethereum's scalability is evident in its ambitious 2023 roadmap, which introduced new Layer 3 solutions and expanded developer capabilities, cementing Arbitrum's position as an innovative player in the Ethereum ecosystem. This strategic direction, backed by a significant $120 million Series B funding round, demonstrates the industry's confidence in Arbitrum's ability to significantly impact the scalability and usability of Ethereum.
Arbitrum features optimistic compilation technology, which provides seamless compatibility with existing Ethereum DApps, high transaction throughput, and a flexible development environment that supports various programming languages. The decentralized validator network, free of central control of transaction requests, underscores the platform's commitment to decentralization. The strength of Arbitrum's ecosystem is further evident through its diverse range of decentralized applications, wallets, and tools, making it a leading solution for boosting Ethereum's performance.
What is the ARB symbol?
The ARB token is the native governance token associated with Arbitrum, the Ethereum Layer-2 scaling solution. It plays a pivotal role in the decentralized governance of the Arbitrum ecosystem through a structure known as the Arbitrum DAO. ARB token holders have the power to vote on key proposals that influence the direction and development of Arbitrum protocols, including Arbitrum One and Arbitrum Nova.
These proposals can range from feature improvements, updating the protocol, allocating funds, to electing Security Council members who will oversee certain emergency and administrative actions within the network. The ARB token facilitates community-led decision-making, ensuring that Arbitrum's development is aligned with the collective interests of its users and stakeholders. The total supply of ARB tokens is fixed, with an emphasis on their role in enabling a decentralized, secure, and user-managed scaling solution for Ethereum applications.
Two weeks ago, on March 16, Arbitrum, a prominent Ethereum layer 2 scaling solution, launched a major token unlock event, releasing over $1 billion worth of ARB tokens to the market. This event marked the beginning of a four-year plan to gradually unfreeze the protocol's native digital assets, with the initial “opening of the cliff” releasing 1.11 billion ARB tokens, which made up 87% of the circulating supply at the time. At the prevailing market price of $1.12 per ARB token, the open amount was valued at approximately $1.24 billion. This issuance was part of a broader strategy to balance the availability of previously frozen cryptocurrencies, with the aim of regulating the influence of early investors or members of the project team who potentially sell their holdings in large quantities.
Arbitrum's approach involves a systematic release of tokens, with the protocol set to continue unfreezing a set amount of tokens every four weeks over the course of four years, TokenUnlocks reported. These opens are designed to increase liquidity in the market, but are often viewed as bearish catalysts for the cryptocurrency price due to a potential increase in selling pressure. Analytics from The Tie suggest that token opens reaching more than 100% of average daily trading volume could put downward pressure on the cryptocurrency's price.
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How to buy ARB with cryptocurrencies
1. Log in to your Bitfinex account or register to create an account.
2. Go to the deposit page.
3. In the Cryptocurrencies section, choose the cryptocurrency you plan to buy ARB with and create an Exchange wallet deposit address.
4. Send the crypto to the generated deposit address.
5. Once the funds arrive in your wallet, you can exchange them for ARB. Learn how to trade on Bitfinex here.
How to buy ARB with fiat currency
1. Log in to your Bitfinex account or register to create an account.
2. You need to get full verification to be able to deposit fiat currencies into your Bitfinex account. Learn about the different verification levels here.
3. On the Deposit page, under the Bank Wire menu, choose the fiat currency for your deposit. There are minimum fiat deposits on Bitfinex; Learn more here.
4. Check your registered Bitfinex email to get the transfer details.
5. Send money.
6. Once the funds arrive in your wallet, you can use them to buy ARB.
We also have Bitfinex on mobile, so you can easily buy ARB on the go.
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