Arbitrum Considers New Airdrop Initiative for ARB Holders to Restore Trust and Improve Reputation

• Arbitrum governance forum members have proposed a new ARB airdrop initiative, aiming to reward early supporters who returned tokens and rebuild trust.

• The proposal outlines that rewards for returned tokens will entail optional voting delegation, with ultimate decisions made by the Arbitrum DAO.

• Despite implementing strategies such as token buybacks, the ARB token remains over 70% lower than its December peak of $1.23.

Arbitrum introduces a new ARB airdrop proposal to incentivize early supporters, aiming to enhance community trust while trying to recover from significant price declines.

Arbitrum Governance Vote For ARB Airdrops? What Users Should Know

A recent proposal from a governance forum member aims to create incentive airdrops for early supporters who returned ARB tokens to the contract address.

This initiative is designed to reinforce community trust, promote ethical standards, and encourage active participation in governance.

“Reward wallets that voluntarily returned ARB tokens during the first airdrop (23 March 2023),” stated the proposal, emphasizing user accountability.

The recommendation suggests distributing crypto airdrops based on the number of returned tokens. However, a minimum threshold will be established to ensure that rewards are significant and provide meaningful compensation.

If approved, the airdrop allocations would be made on-chain via Arbitrum One (Layer 2), optimizing transaction costs and promoting wider adoption of the ecosystem.

Recipients would be given the option for temporary voting delegation to boost governance participation, but ultimate authority would remain with the Arbitrum DAO. Any changes would be communicated publicly and decided through a DAO vote.

The proposal is currently open for community feedback and discussion within the governance forum, available with three voting options.

“Yes: Proceed with the upgraded ARB token reward for eligible wallets. No: Do not proceed at this time, and Abstain,” the forum concluded.

Arbitrum Pushes To Rebuild Reputation

This new proposal adds to Arbitrum’s ongoing efforts to restore its reputation, particularly after experiencing a significant price drop of over 80% from its peak in late December. The network recently initiated a token buyback strategy as part of its recovery plan.

“We’re reinforcing our commitment to the ecosystem and strengthening our alignment by adding ARB to our treasury through a strategic purchase plan,” the company emphasized.

Despite these efforts, Arbitrum’s ARB token is still trading more than 70% below its December 6 high of $1.23. According to COINOTAG data, it was trading at approximately $0.33 at the time of this writing.

Nonetheless, the Arbitrum project remains committed to moving forward. Its latest initiative allows users the flexibility to choose any gas token for their projects on Arbitrum.

“Builders can now choose whatever gas token they want for their Arbitrum chains. Your Chain, Your Rules,” Arbitrum declared.

Arbitrum Makes Gas Freedom A Feature

Arbitrum also announced that custom gas tokens could now be utilized across any rollups utilizing Ethereum for data availability. This development aims to give users the freedom to configure their projects as they see fit on all Arbitrum chains.

The community has responded positively, appreciating this feature which allows for flexibility in choosing whether to utilize the Arbitrum bridge for exchanging Ethereum tokens.

“As a builder, I’m in awe; ARB is built differently. While some chains launch and rug memes for fun, others like Arbitrum are focused on attracting capital, users, and founders,” noted Wals, a popular user on X.

This innovative move suggests that Arbitrum is aware that token buybacks alone may not suffice in regaining its lost reputation.

“Pure buybacks alone feel unimaginative and short-sighted—they create scarcity without driving long-term growth or strategic value,” argued Yogi, a well-known wallet maxi.

Conclusion

The recent ARB airdrop proposal signifies Arbitrum’s commitment to rebuilding trust among its community while striving to recover from past price declines. With the flexibility of gas tokens and community-driven governance initiatives, Arbitrum is laying the groundwork for a more robust and engaged ecosystem as it navigates the challenges ahead.