Bittime - Layer-2 blockchain network Arbitrum is gearing up for a major event on March 16. They plan to open token vesting of 1.1 billion Arbitrum tokens (ARB) worth IDR 36 trillion or around (2.32 billion US dollars).
Details of ARB Token Allocation and Release Mechanism
The token allocation to be opened covers around 76% of the total supply of ARB currently circulating. The details are as follows:
- 673.5 million tokens (around IDR 21.9 trillion) were allocated to the Arbitrum team and advisors.
- 438.25 million tokens (around IDR 14.2 trillion) were allocated to project investors.
The highlight is the mechanism for releasing these tokens. This is a “Cliff Unlock,” meaning all tokens will be available at once on March 16, with no prior gradual release.
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Price Drop Concerns
This allocation plan sparked discussion in the crypto community. There are concerns about the potential decline in the price of ARB tokens due to the large number of tokens being opened. Some community members are even planning to take a short position (betting the price down) or have already sold their tokens first.
However, JJcycles, a crypto influencer on the X platform, offered an optimistic outlook. He saw similarities with a similar event on Solana, where the price of SOL tokens actually increased after the token unlock, different from general predictions.
Apart from Arbitrum, several other blockchain projects will also open their token vesting this week. For example, on March 13, Aptos will unlock around 24 million tokens (around IDR 5.1 trillion) or 6.73% of the circulating supply. The tokens are allocated to Aptos foundations, communities, core contributors and investors.
Several other projects such as APE, Flow, CyberConnect, Moonbeam, and Euler are also scheduled to open their token vesting, with a total value of around IDR 785 billion.
Thus, the total value of tokens to be unlocked this week is estimated at IDR 42 trillion, marking a period of significant activity in the digital asset market.
What is Arbitrum (ARB)?
Arbitrum is a Layer-2 (L2) scaling solution for Ethereum. Think of L2 like Ethereum's transaction-only toll lanes. With this special channel, transactions can be processed more quickly and with lower fees.
Arbitrum's main goal is to overcome the limitations of Ethereum smart contracts, such as slow transaction speeds and expensive fees. This of course makes the Ethereum user experience less enjoyable.
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How Arbitrum Works
Arbitrum uses " optimistic rollups " technology. This technology allows Ethereum smart contracts to be processed more quickly by exchanging messages with other smart contracts on the Ethereum main network and on the second layer of Arbitrum.
The term "optimistic" means anyone can post a block of transactions on Arbitrum and validate the validity of other blocks. Meanwhile, “rollup” refers to the process of how public information is used to reconstruct the entire transaction history from optimized event records.
Arbitrum Rollup is an optimistic rollup protocol, and Arbitrum One is the first rollup network on Arbitrum.
ARB tokens
The ARB token is an important part of the Arbitrum ecosystem. ARB serves as the governance token for the Arbitrum blockchain. It is an ERC-20 token that allows its owners to participate in the network's decision-making process and cast their vote in the development and future direction of Arbitrum.
How to Buy ARB Tokens on Bittime
You can buy and sell Arbitrum (ARB) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
ARB is available on Bittime in ARB IDR pairing. To be able to buy ARB IDR at Bittime , make sure you have registered and completed identity verification.
Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy ARB on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
How to Add Arbitrum Network to MetaMask
Arbitrum Price Prediction (ARB) in 2024
Arbitrum (ARB): Its Ecosystem and Latest ARB Airdrop
Solving the Ethereum Transaction Fee Crisis with Arbitrum
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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