What is Arbitrum? Arbitrum is a layer 2 blockchain scaling solution built on top of the Ethereum blockchain. Offchain Labs created it in August 2021 with the aim of speeding up transaction times while lowering the on-chain transaction costs and promoting scalability.

Simply put, Arbitrum seeks to expand Ethereum’s smart contracts capability by improving its scalability and speed while still offering auxiliary privacy features.

But how exactly does Arbitrum reduce the high transactional gas fees?

By incorporating optimistic rollups.

Rollups are a smart contract scaling solution that involves compiling multiple off-chain transactions in a process known as ‘rolling up’. Once all the transactions have been rolled up, they are presented as a single transaction to the Ethereum blockchain. This helps to reduce gas prices while retaining secure transactions and relieving network latency.

Rolling up makes Arbitrum faster and cheaper to use, with all transaction data being relayed back to the Ethereum blockchain. The layer 2 protocol can process 40,000 transactions per second, while Ethereum can manage only roughly 14 transactions per second. Transactions on Ethereum cost several dollars to complete, while the same costs approximately two cents on the Arbitrum blockchain.

Additionally, Arbitrum supports the Ethereum Virtual Machine (EVM). This means that Ethereum decentralized finance (DeFi) developers can easily link their decentralized applications (DApps) with Arbitrum without making any changes to their apps.

Since its inception, Arbitrum has been operating without a token. However, this will soon change as Arbitrum will airdrop its new and long-awaited native token, ARB, on March 23, 2023.

The ARB token will be a governance token that will permit its holders to vote on decisions associated with the protocol through the chain’s DAO.

A cryptocurrency airdrop is where crypto projects send tokens or coins to eligible crypto wallet addresses. Typically, the crypto project will select eligible wallets of their blockchain’s active community members and send them a specific amount of the new digital currency, usually for free, or in exchange for carrying out a task like retweeting a tweet shared by the company issuing the new cryptocurrency. The main objective of an airdrop is to create awareness of the new token, to boost circulation, and to decentralize the token holders.

Arbitrum is planning an airdrop for its new ARB token.

But what is the Arbitrum airdrop, and why is it important? The Arbitrum airdrop is a strategy that Arbitrum will use to distribute its ARB tokens to its users. This will help Arbitrum officially launch its native token and spearhead its circulation to early adopters.

Additionally, the Arbitrum airdrop is also important as it will mark the blockchain’s official transition into a DAO and present the ARB token holders with an opportunity to vote for any changes to the protocol.

ARB will have a total circulating supply of 10 billion tokens. The Arbitrum community will have control of 56% of the 10 billion tokens, while 11.5% will be airdropped to eligible Arbitrum users. In addition, 1.1% will be allocated to the DAOs that manage the Arbitrum ecosystem. The rest of the tokens will go to a treasury that the Arbitrum DAO will manage. A further 44% of ARB’s circulation will go to the employees and investors of Offchain Labs who first developed Arbitrum.

However, all employee and investor tokens will be subject to vesting schedules and lock-up periods.

Most early Arbitrum adopters have been allotted 625 ARB tokens, which correlates to a rough total airdrop value of $400 and $1,250. Arbitrum’s highest allocation per address is 10,250 ARB tokens, and it is anticipated that 4,400 crypto wallets will be eligible for the ARB tokens, receiving between $6,500 and $20,600 in tokens.

Read more: https://trustwallet.com/blog/arbitrum-airdrop-everything-you-need-to-know

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