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The $ARB token is an ERC-20 governance token that allows its holders to participate in the Arbitrum DAO's on-chain governance protocol. The $ARB token is minted by a smart contract that lives on Arbitrum One, a Layer 2 Arbitrum rollup chain.
The Arbitrum DAO is responsible for managing both the governance protocol as defined within the Constitution, and the technologies that the DAO governs. This includes the Arbitrum One and Arbitrum Nova chains, along with their underlying protocols.
If you own $ARB tokens, you can vote on governance proposals that affect the operation and evolution of the Arbitrum One and Arbitrum Nova chains. This includes proposals for upgrades to the chain, as well as proposals for how to use the funds within the DAO Treasury.
When you vote on an on-chain proposal, you're using your $ARB tokens to signal your support or opposition. The more $ARB tokens you have, the more influence your vote will have. This is because the Arbitrum DAO's smart contracts are implemented such that votes are token-weighted, meaning that the power of a vote is determined precisely by the number of tokens the voter's wallet represents.
Note that $ARB tokens can be delegated to other wallets. This means that you can vote using your own $ARB tokens (those in your own wallet), but you can also vote using someone else's $ARB tokens as long as the owner of those tokens has delegated their voting power to you. Delegation is useful for DAO members who don't have time to commit to reviewing and discussing DAO proposals on a regular basis1.
$ARB was created with an initial supply of 10 billion. New $ARB can be minted at a rate of 2% of its supply per year at most, with the first of these mints becoming eligible on March 15, 2024. $ARB minting events are performed by the DAO via a constitutional proposal.
In summary, the $ARB token is a special-purpose digital asset that gives its holders the ability to vote on on-chain proposals that affect the operation and evolution of the Arbitrum DAO and the technologies it governs. Holding $ARB tokens allows you democratically shape the future of the Arbitrum ecosystem alongside other values-aligned and incentives-aligned token holders.
FAQs
DAO governance tokens are like voting chips you can distribute to members of your organization to make decisions. First you need to mint the governance token, and then it's time to decide how to distribute it!
What is the arbitrum governance token? ›
The $ARB token is an ERC-20 governance token that allows its holders to participate in the Arbitrum DAO's on-chain governance protocol. The $ARB token is minted by a smart contract that lives on Arbitrum One, a Layer 2 Arbitrum rollup chain.
What is the purpose of the arb token? ›
The ARB token is used for governance decisions, including the allocation of funds and technical changes. ARB token holders can also vote on electing members for the Security Council, a team responsible for Arbitrum's treasury wallet.
How do I create a DAO governance token? ›
To get started:
- Visit tally. xyz and click Add a DAO. ...
- Enter your DAO's contract address, which we got at the previous step. Tally will automatically fill out the remaining governance fields (type, network, starting block). ...
- Tally will automatically fill out the token fields upon which our DAO is built. ...
- That's it!
DAO Historical Price
| 24h Range | $0.2931 – $0.2982 |
|---|
| 7d Range | $0.2779 – $0.2991 |
| All-Time High | $8.71 96.6% Apr 21, 2021 (over 3 years) |
| All-Time Low | $0.2623 12.7% Sep 06, 2024 (9 days) |
A decentralized autonomous organization is an entity structure in which token holders participate in the management and decision-making of an entity. A DAO does not have a central authority; instead, power is distributed among token holders who collectively cast votes.
Who is the owner of the arb coin? ›
Arbitrum is a Layer-2 blockchain designed to scale Ethereum, developed by Offchain Labs. Arbitrum was founded by Ed Felten, formerly President Obama's deputy Chief Technology Officer, Steven Goldfeder (CEO) and Harry Kalodner (CTO). The three co-founders met at Princeton University.
How much is 1 arbitrum token worth? ›
ARB Historical Price
| 24h Range | $0.4974 – $0.5294 |
|---|
| 7d Range | $0.5013 – $0.54 |
| All-Time High | $2.39 79.0% Jan 12, 2024 (8 months) |
| All-Time Low | $0.4316 16.5% Aug 05, 2024 (about 1 month) |
If you squint, governance tokens bear similarities to traditional equity. Stocks represent ownership in a company with tangible and intangible assets, revenue streams. Governance tokens offer control over a protocol's future, and can dictate cash flows and/or receive dividends.
Why do people buy governance tokens? ›
The primary purpose of governance tokens is to decentralize decision-making and to give holders a say in how the project is run. Each governance token a person holds usually equates to one vote on upcoming proposals, but there are other methodologies.
According to your price prediction input for Arbitrum, the value of ARB may increase by +5% and reach $ 0.69457 by 2030.
Is ARB token a good investment? ›
Price forecasts for Arbitrum's future are currently mixed. In 2025, CoinPedia believes the token could reach a maximum price of $4.01, while Changelly and Coincodex sees a less bullish scenario for ARB. Changelly predicts ARB to hit a potential high of $0.968, while Coincodex sees the coin to reach $2.35.
How do DAO Token holders make money? ›
Does a DAO make money? Like other web3 projects, DAOs can make money through the sale of their native tokens. These tokens can be sold on major crypto exchanges around the world. These tokens give their holders voting rights within the DAO and sometimes other benefits, like token drops.
What is DAO governance? ›
Governance. DAO governance is coordinated using tokens or NFTs that grant voting powers. Admission to a DAO is limited to people who have a confirmed ownership of these governance tokens in a cryptocurrency wallet, and membership may be exchanged.
Can I start my own DAO? ›
A DAO's founders must estimate how large they want it to be; the size will help determine its governance. Before launching, build interest and create a conversation about what you hope to achieve. There are many tools for starting a DAO, including voting, fundraising, and treasury management tools.
What is the purpose of a governance token? ›
Governance tokens are cryptocurrencies that are the key to on-chain decision-making. Unlike crypto assets such as Bitcoin that are used only as a means of payment, governance tokens incentivize community participation by giving holders voting powers for the future direction of the crypto project.
What is the governance structure of a DAO? ›
DAO governance is all about decision-making. When you set DAO governance, you define who can make decisions and how. Governance can be as simple as three out of five people voting “yes” for an idea or as complex as an entire network state of individuals voting on huge decisions.
What is the difference between utility token and governance token? ›
Governance tokens give holders voting rights and influence over project decisions, while utility tokens serve as conduits for platform features and functionalities. Despite their differences, both tokens are essential to decentralized ecosystems, driving community engagement and fostering innovation.
Are governance tokens worth it? ›
Governance Tokens: As discussed, the value of governance tokens is largely derived from the ability to influence the direction and operation of the protocol. Gas Tokens: The original use case of native coins is gas. To use a blockchain, you pay with the coin of the network.
