key points
Some large holders of Arbitrum governance tokens have been buying more.
Arbitrum recently began distributing tokens to eligible DAOs in its ecosystem.
Following the distribution of governance tokens to eligible decentralized autonomous organizations by Arbitrum, large token holders, commonly referred to as whales, have been increasing their token holdings.
Recently, an address that holds 1.95 million Arbitrum governance tokens, worth around $2.7 million, received almost $200,000 in ARB from Binance. According to on-chain analysis provided by Twitter account Lookonchain, at the time of the transaction, one token was priced at $1.38.
Another address, which holds 1.78 million governance tokens worth $2.5 million, spent 80 ETH to purchase around $146,000 worth of ARB at $1.34 per token.
Lookonchain also noted that this second address had made over $7.3 million in profits from successful trades.
Arbitrum distributing governance tokens to DAOs
Arbitrum, a Layer 2 network on Ethereum, has started distributing governance tokens to decentralized autonomous organizations (DAOs) earlier this week. The team had previously designated 1.13% of the total 10 billion governance token supply, equivalent to 113 million ARB with a current value exceeding $145 million, to be distributed among qualifying projects in the Arbitrum ecosystem.
The distribution of governance tokens to DAOs aims to bootstrap activity on the Arbitrum network. The tokens may be allocated to projects' treasuries or used for other objectives, as determined by the respective DAOs. Notable projects receiving governance tokens include Uniswap, Sushi, Aave, GMX, Hop Protocol, Radiant Capital, Balancer, Synapse, MakerDAO, Curve, Layer Zero and 1inch.
An imperfect start
Arbitrum faced initial difficulties with its governance when the project's foundation spent 50 million tokens before waiting for the approval of Arbitrum Improvement Proposal 1 (AIP-1). Consequently, AIP-1 was rejected by the community.
However, a subsequent proposal, AIP 1.1, was accepted by the community, which agreed to the foundation's receipt of the planned 750 million ARB tokens.
#arbitrum #arb #governance #cryptonews #crypto2023
Source: theblock
image Source:
If you enjoy our content and want to show your support, please like, share, and follow us for more high-quality updates.
Disclaimer
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
