Arbitrum

Arbitrum uses an Optimistic Rollup architecture, which means that transactions are presumed valid unless challenged within a certain time period. The Arbitrum network is secured by a set of validators who can dispute transactions if they detect any issues. The data availability for the Arbitrum chain is also secured by being posted on the Ethereum mainnet.

ETH is the native currency used to pay gas fees on the Arbitrum network. All Arbitrum transactions are powered by ETH. Users need to bridge ETH (and other tokens) from the Ethereum mainnet to Arbitrum in order to use the network and pay for transactions.

The Arbitrum (ARB) token has a fixed total supply of 10 billion tokens. However, the initial distribution of ARB tokens was only 12.75% of the total supply, which equates to around 1.275 billion ARB tokens. The remaining 8.725 billion ARB tokens are allocated to the Arbitrum DAO treasury (42.78%), Offchain Labs teams and advisors (26.94%), investors (17.53%), an airdrop to users (11.62%), and an airdrop to DAOs (1.13%). As these remaining ARB tokens are gradually unlocked and distributed over time, the circulating supply has been steadily increasing. As of July 2024, the circulating supply of Arbitrum (ARB) tokens is approximately 3.3 billion. The gradual increase in circulating supply is part of Arbitrum's token distribution plan, designed to ensure a healthy, sustainable ecosystem for the network and its governance token. ARB holders can participate in the decentralized governance of the Arbitrum network by staking their tokens and voting on proposals.