About Arbitrum (ARB)

Why did Arbitrum even need to exist?

Short version: Ethereum became too expensive and too crowded for normal use. For a long time, simple actions didn’t justify the gas. Arbitrum moves execution off Ethereum, then settles results back on Layer 1. Same base security model, fewer bottlenecks. You could argue it’s less about speed and more about restoring usability in real usd or usdt terms.

Is ARB actually used for anything day to day?

Not really—and that’s intentional. ARB is a governance token, not a utility coin. ETH still pays gas. ARB holders vote on upgrades, incentives, and treasury decisions through the DAO. It’s easy to miss this at first, but separating execution from control was a design choice, not an omission.

How big is the ARB supply, and is inflation a risk?

The starting supply is 10 billion ARB, fixed at genesis. Inflation isn’t automatic. The DAO can vote to introduce it, capped at 2% annually, but that switch hasn’t been turned on. So yes, dilution is possible in theory—but only if governance explicitly approves it.

How were ARB tokens distributed at launch?

Most of the supply went where control lives. 42.78% sits in the DAO treasury. The team and advisors hold 26.94%, investors 17.53%, and early users received 11.62% via the airdrop. Another 1.13% went to ecosystem DAOs. The structure clearly prioritizes long-term governance over fast liquidity.

What’s the real story with vesting and unlocks?

Team and investor tokens were locked for a full year after launch. The big cliff arrived in March 2024, and since then unlocks have been happening monthly. Vesting runs through March 2027. It’s not clever or hidden—just linear releases the market can track months ahead.

Who backed Arbitrum before ARB was tradable?

Offchain Labs raised capital years earlier. There was a $3.7M seed round in 2019, then a $20M Series A in April 2021, followed by a $100M Series B in August 2021. Both later rounds referenced a $0.12 price. Infrastructure first, token governance later—that sequencing matters.

Which investors show up on the cap table?

You’ll recognize most of them. Pantera Capital, Lightspeed Venture Partners, and Polychain Capital were core backers. Mark Cuban participated as an angel. Others—Ribbit Capital, Compound, Manifold Trading, Alameda Research—joined across stages. It wasn’t a one-cycle hype raise.

What is Arbitrum DRIP, and why should anyone care?

DRIP is a usage-based incentive program targeting leveraged DeFi on Arbitrum One. Season One runs from September 3, 2025 to January 20, 2026, with up to 24 million ARB distributed. Rewards depend on time-weighted borrowing, not quick interactions. It’s built to reward staying power, not button-clicking.