Arbitrum, the current leading Layer 2 network on Ethereum, has announced the start of token distribution to DAOs (Decentralized Autonomous Organizations) in its ecosystem. The core Arbitrum team previously determined that 1.13% of their overall 10 billion token supply, equivalent to 113 million ARB tokens (valued at over $145 million), would be distributed among qualified projects. This is separate from the 11.6% of tokens allocated to Arbitrum users in March 2021.

Today the foundation began transferring a large amount of tokens to 125 DAO addresses and a few more allocations are expected later, with initial tokens confirmed through Twitter. Arbitrum's competitor for the Layer 2 niche, Optimism, adopted a similar strategy and distributed its own governance tokens soon after launching in 2022.

The most significant value of these tokens lies in their background of functioning as parts of a DAO’s treasury and other objectives that can be put to vote and approved in the form of a governance decision. The list of projects to receive these tokens includes GMX, TreasureDAO, SushiSwap, Uniswap, Aave and many more.

This token distribution is distinct from the 750 million ARB tokens transferred to the Foundation in a separate proposal, AIP 1.1, and allocated as part of the Foundation's administrative budget towards special grants. This was subject to some controversy due to reports that the Foundation had spent 50 million tokens without obtaining authorization.

In conclusion, while these tokens may catalyze activity on the Arbitrum network and benefit the lucky recipient DAOs, their transfer is not related to funds received by the Foundation since the distribution today was complimentary, in the same manner as the previous user airdrop.



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