arbitrum tokenomics | BTCC Knowledge

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What is the arbitrum token?

The Arbitrum token, $ARB, is the native ERC-20 compatible governance token for the Arbitrum blockchain. You can use $ARB to transfer value, as an investment, or to vote on governance decisions. One of the most anticipated airdrops of 2023, $ARB had strict eligibility criteria to qualify “active” users.

What is a $ARB token & how does it work?

Apart from being used to transfer value on the Arbitrum blockchain, $ARB token grants you a seat at the governance table of the Arbitrum DAO. The DAO makes crucial decisions on the protocols’ working, such as how they should allocate funds, investments in the ecosystem, and even technical changes.

Is arbitrum the only L2 solution using optimistic rollups?

Arbitrum is not the only L2 solution using optimistic rollups. Optimism (OP) is another layer-two chain that launched its OP token in June 2022 with an airdrop. Arbitrum and Optimism share many similarities: Validators stake ETH and have an incentive to act honestly.

What is the difference between optimism and arbitrum?

Optimism has a Solidity compiler, Arbitrum supports all EVM programming languages. As you can see, the differences are mostly technical and of little interest to the everyday user. Arbitrum, however, boasts a significantly bigger ecosystem with more total value locked (TVL) ($1.5 billion vs $300 million) and more active DApps.