Despite six months to claim tokens, Arbitrum users missed $59 million in free airdrop rewards. Ethereum’s Layer-2 scaling solution sank its token after its Treasury received the unclaimed airdrop tokens.
Arbitrum’s 1.6% Decline Post Airdrop Claim Deadline
On Monday, September 25, Arbitrum dipped by 1.6% after the Arbitrum Treasury received $59 million in unclaimed airdrop tokens.
This transfer, valued at $59 million, resulted from users needing their claim window despite having a generous six-month period following a March airdrop. While 93% of eligible users staked their claim, the remaining tokens, representing 0.69% of ARB’s total supply, were unclaimed.
Initially, these unclaimed tokens were set to be sent to a burn address, therefore leaving circulation. However, in a nearly unanimous governance vote in August, the community decided these tokens would go into the Arbitrum treasury.
This move showcased the community’s trust in the project’s ability to put the funds to good use. With the Treasury now holding close to $3 billion in ARB tokens, Arbitrum has plenty of resources to grow.
What Does This Mean for Arbitrum?
The impact of the treasury allocation will boil down to how Arbitrum uses the tokens. While burning tokens is deflationary, there are advantages to putting tokens in the treasury.
Specifically, the project can use these tokens to invest in the growth of its ecosystem. For example, Arbitrum can use its resources to incentivize users, reward developers, and add more features.
At the same time, if the project spends the tokens and does not see enough growth to compensate for it, this spending will be inflationary. However, the impact of these decisions will show itself only in the medium to long term.
Can Users Still Claim Airdrop Tokens?
The short answer is, unfortunately, no. The window to claim the ARB tokens from the airdrop closed over the past weekend. Users were given six months since the airdrop in March to stake their claims.
The remaining unclaimed tokens, amounting to 69 million ARB and valued at $59 million, have been transferred to the Arbitrum treasury. The community will now decide what to do with these tokens.
For those who did not manage to claim their tokens, it’s essential to stay updated with announcements and community decisions. While this particular opportunity has passed, there will likely be airdrops from different projects in the future.
On the Flipside
- Unclaimed airdrop tokens are not rare in crypto. However, they suggest that many holders are not active in the community.
- In most crypto projects, users vote based on the amount of tokens they own. This means that large holders have a disproportionate influence on the course of the project.
Why This Matters
Arbitrum’s decision to allocate tokens to the treasury rather than burning them offers insights into the platform’s strategic priorities.
Read more about Arbitrum and its promise to save Ethereum:
Arbitrum Scaling Solution: Everything You Need to Know
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