• Arbitrum received negative feedback from the community after announcing the allocation of 750 million ARB tokens to its foundation.
• The protocol responded by reducing the proposal threshold and introducing token lockups, budgets, and transparency reports.
• Following these changes, daily activity on the Arbitrum network surged and the price of ARB remained unaffected.
Arbitrum’s Airdrop Draws Criticism
Arbitrum recently dropped its much-awaited ARB token, however this positive sentiment soon turned sour after ArbitrumDAO decided to allocate 750 million ARB tokens to its foundation. This decision was met with massive criticism by the community who felt they had not been given an opportunity to voice their opinions on the allocation of these funds. The price of the Arbitrum token was also affected by these events.
Changes Made By Arbitrum
In order to address this backlash, ArbitrumDAO made changes to its governance policies. It announced that 700 million ARBs will not be transferred anywhere without approval from the community and updated their AIP proposal so it would include token lockups, budgets and transparency reports. Furthermore, they reduced their proposal threshold from 5,000,000 to 1,000,000 ARBs in order for governance to become more accessible.
Daily Activity Surges
These changes had a positive impact on the protocol’s health as daily active addresses on the network surged following this announcement. Despite this news having a positive effect on activity levels, it did not have any effect on prices as over the past week ARB’s value fell by 11.57%. The frequency with which ARB was being traded had also decreased due to slower velocity rates but it remains unclear whether or not these decisions will have a long term effect on both prices and public opinion towards ArbitrumDAO.
What Are 1/10/100 ARB Worth Today?
At present time 100ARBS are worth approximately 0.45 US dollars (USD). This means that 10ARBS are worth about 4.5 cents (USD) and 1ARB is worth around 0.045 cents (USD).
Realistic Market Cap In BTC Terms
Given that Bitcoin (BTC) currently has a market cap of $1 trillion USD it is difficult to accurately determine what size market capitalization an asset such as ARB could realistically achieve in terms terms without taking into account other factors such as usage or adoption rate within its own ecosystem or industry at large.. However if we were to speculate what size market capitalization an asset such as ARB might reasonably achieve in today’s world then one could estimate that it may reach up-to $10 billion USD in BTC terms at some point in time based upon current trends and speculation surrounding digital assets