Token Economics
Reference protocol
ARBL1 / L2Mar 2023design 0x181d…6b12Verified

ARBITRUM $ARB

L2 governance token with 56% community / 44% insider split. 4-year cliff+vest on team and investors after a controversial 1-year delay before unlocks began.

Total supply

10B ARB

fixed at launch

TGE circulating

12.8%

87.3% locked

Allocations

5

distinct line items

Launch

Mar 2023

Arbitrum

Distribution
DAO TREASURY42.8%TEAM + FUTURE HIRES26.9%INVESTORS17.5%COMMUNITY AIRDROP11.6%DAO ECOSYSTEM AIRDROP1.1%
Schedule of allocations
  • 1
    Locked at TGEDAO TREASURY

    Largest single allocation. Used for grants, programmes (STIP), and ecosystem development. Distributed by governance.

    42.78%
    120 MO LIN
  • 2
    Locked at TGETEAM + FUTURE HIRES

    Offchain Labs team and reserved future-hire pool. 1-year cliff, then 3-year linear vest.

    26.94%
    12 MO CLIFF · 36 MO LIN
  • 3
    Locked at TGEINVESTORS

    Series A/B backers. 1-year cliff, 3-year linear vest. The cliff date became one of crypto's most-watched events.

    17.53%
    12 MO CLIFF · 36 MO LIN
  • 4
    COMMUNITY AIRDROP

    Distributed to ~625K eligible addresses based on usage of Arbitrum One. Fully unlocked at TGE.

    11.62%
    100% TGE
  • 5
    DAO ECOSYSTEM AIRDROP

    ~140 DAOs operating on Arbitrum at the time received tokens for treasury management.

    1.13%
    100% TGE
Key takeaway

A large DAO treasury (42.78%) and an 11.6% airdrop established the L2 governance norm — but the 1-year cliff before insider unlocks meant the price was already known.

Design notes
  • TGE CIRCULATING ≈ 12.75% — THE TWO AIRDROP TRANCHES.
  • 1-YR CLIFF MEANT EVERY HOLDER KNEW THE EXACT UNLOCK DATE.mar 2024 — the cliff
  • DAO TREASURY IS 4× LARGER THAN INVESTOR ALLOCATION — UNUSUALLY COMMUNITY-WEIGHTED FOR AN L2.
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