Arbitrum Completes Distribution of $120M Airdrop
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Ethereum-scaling blockchain Arbitrum on Tuesday completed the distribution of more than $120 million worth of its ARB tokens to projects that were built on the network, blockchain data shows.
In March, Arbitrum issued and airdropped its tokens to individual users in amounts ranging from 625 ARB to more than 10,000, based on their network activity and number of wallets.
Airdrops occur when crypto projects send free tokens to their communities in a bid to encourage adoption. Crypto users who frequently interact with new and existing platforms are likely to receive an airdrop at some point. That has spurred the narrative of “airdrop farming” because large airdrops can be valued at thousands of dollars in effectively free money.
Projects that built on the Arbitrum network, such as perpetual trading protocol GMX and token launchpad Camelot, were eligible for the airdrop, receiving tokens in proportion to the number of smart-contract deployments, users and trading volumes, among other factors.
For some, like Vesta Finance, the airdrop provided a multimillion-dollar stimulus: The project was eligible for 2.7 million ARB tokens, worth just under $6 million, even though it held only $3 million in its treasury. This can allow the project to, over time, sell the tokens to bolster its own development or even provide token incentives to users to further jump-start activity.
Projects such as yield rewards-focused PlutusDAO said they will use their airdrop allocation in “multiple ways to make the project stronger,” without revealing specifics.
Other projects decided to sell as soon as they received the tokens, however. Gaming-focused TridentDAO sold $175,000 worth of its ARB tokens, or half the amount it received, through three addresses. The move drew criticism from the community.
On-chain data compiled by Lookonchain shows 90 million ARB tokens – about $120 million at current prices – were sent to more than 131 decentralized autonomous organizations. Non-fungible-token marketplace TreasureDAO and GMX received the most at 8 million ARB, or $12 million.
These were followed by decentralized exchanges SushiSwap, Balance, Uniswap, Curve and Dopex, which will each receive between 3 million and 5 million ARB tokens.
Edited by Sheldon Reback and Mark Nacinovich.
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