Arbitrum Considers Airdrop to Reward Early Supporters Amid 80% Price Drop

Arbitrum, a prominent Layer 2 scaling solution for Ethereum, is considering a new airdrop initiative for holders of its native token, ARB. This proposal, put forth by members of the Arbitrum governance forum, aims to reward early supporters who returned their tokens and to rebuild trust within the community following significant price declines.

The initiative outlines that rewards for returned tokens will be distributed based on the number of tokens returned, with a minimum threshold to ensure meaningful compensation. The airdrop allocations would be made on-chain via Arbitrum One, optimizing transaction costs and promoting wider adoption of the ecosystem. Recipients would have 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, with three voting options: "Yes: Proceed with the upgraded ARB token reward for eligible wallets," "No: Do not proceed at this time," and "Abstain." This initiative is part of 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, emphasizing its commitment to the ecosystem and strengthening its alignment by adding ARB to its treasury through a strategic purchase plan.

Despite these efforts, the ARB token is still trading more than 70% below its December 6 high of $1.23. The new airdrop proposal, along with the flexibility of gas tokens and community-driven governance initiatives, signifies Arbitrum's commitment to rebuilding trust among its community while striving to recover from past price declines. With these measures, Arbitrum is laying the groundwork for a more robust and engaged ecosystem as it navigates the challenges ahead.