Proposal Suggests Rewarding Early Arbitrum Backers with ARB Airdrops
Arbitrum's (ARB) latest move could potentially improve its standing in the crypto world. Following the recent token buyback endeavor, a new governance proposal calls for crypto airdrops to motivate early supporters.
Arbitrum's Token Fall and the Need for Change
The Arbitrum price took a significant dip, plummeting more than 80% from its December 2024 high of $1.2384. In an attempt to reverse this downward trend, the network has been exploring various strategies.
Arbitrum's Governance Vote for ARB Airdrops Explained
A new member in the governance forum proposed an incentive airdrop targeting early supporters who inadvertently sent their tokens to the network's contract address during the initial airdrop on March 23, 2023.
The proposal aims to:
- Bolster community trust
- Encourage ethical participation in governance
- Restore Arbitrum's reputation
As stated in the proposal, "Reward wallets that voluntarily returned ARB tokens during the first airdrop." The airdrop amounts will be proportionate to the tokens returned, but a minimum threshold will ensure that rewards are meaningful.
If approved, the airdrops will be distributed via Arbitrum One (Layer 2) to minimize fees and incentivize ecosystem use. Recipients may also be offered an optional temporary voting delegation to encourage governance participation, although the Arbitrum DAO holds the final decision-making power.
The Plan: Breaking Down the Vote Options
- Yes: Proceed with the upgraded ARB token reward for eligible wallets.
- No: Do not proceed at this time.
- Abstain: Neither approve nor disapprove the proposal.
Arbitrum's Push for Reputation Recovery
This latest move is part of Arbitrum's broader effort to recover its reputation after a sharp price drop of over 80% from its late December peak. Recently, Arbitrum announced a token buyback plan to help alleviate the consequences of the fall.
"We're reinforcing our commitment to the ecosystem and strengthening our alignment by adding ARB to our treasury through a strategic purchase plan." the company explained.
As of writing, Arbitrum's ARB token trades for $0.33, still over 70% below its December 6 high of $1.23.
Gas Freedom on Arbitrum: A New Feature
Additionally, Arbitrum has introduced a feature that allows users to choose their preferred gas token for Arbitrum projects. This move grants builders a significant degree of independence, with the possibility of exchanging Ethereum tokens using the Arbitrum bridge.
Arbitrum users seem to be thrilled about this change, praising the platform for its innovative approach to regaining standing in the crypto community:
"As a builder, I'm in awe, ARB is built differently. While some chains launch & rug memes for fun, others are working on attracting capital, users, and founders" (Wals, a popular user on X).
Perhaps this new development demonstrates Arbitrum's responsiveness to criticisms of simple buybacks as insufficient to rebuild its reputation:
"Pure buybacks alone feel unimaginative and short-sighted-they create scarcity without driving long-term growth or strategic value." (Yogi, a well-known wallet maxi).
- The ongoing decline in Arbitrum's price has prompted a need for a shift in strategy, with a new focus on decentralized governance and community engagement.
- The recent proposal for ARB token airdrops is aimed at rectifying past mistakes and fostering trust among early supporters.
- The airdrop initiative requires a governance vote, with the option to proceed with the upgraded ARB token rewards for eligible wallets.
- In addition to the airdrops, Arbitrum is also implementing a feature that allows users to choose their preferred gas token for Arbitrum projects.
- Arbitrum's new gas choice feature is seen as a significant step towards fostering innovation and promoting independence within the ecosystem.
- The airdrops will be distributed on the Arbitrum One (Layer 2) network to minimize fees and encourage ecosystem use.
- Participating in governance through temporary voting delegation may be incentivized for airdrop recipients to further engagement.
- The Arbitrum DAO maintains the final decision-making power in all governance matters.
- Arbitrum's push for reputation recovery also includes a token buyback plan to alleviate the consequences of the price drop.
- The proposed airdrop could potentially attract more investors and further restore Arbitrum's standing in the crypto world, as it moves towards long-term growth and value.
- As the crypto landscape evolves in 2023, Arbitrum's recovery plans and innovative features will be closely watched by market participants and technology enthusiasts alike.
