🔴 Arbitrum shocked me with the distribution of its token 😩 Is a centralized DAO, still a DAO? Is this what web3 is supposed to look like? 💬👇
🔴 Arbitrum – Ethereum’s largest 2nd layer (55% dominance) based on Optimistic Rollups, is releasing a long-awaited token that is ultimately a tool for broad governance. Optimism – Arbitrum’s competitor has its token for some time already.
🔴 Airdrop, which is actually a free allocation of ARB tokens, will apply to users who have “used” Arbitrum – transferred Ethers from the main Ethereum chain there and then simply executed some transactions. Such an allocation of tokens to users, is a common practice to build a web3 community and encourage, motivate the use of the “product” – ultimately, one is rewarded for this through the allocation of newly created tokens. You can check your allocation here: https://arbitrum.foundation/
🔴 ARB token is a management token where it will become, along with the corresponding smart contracts and processes, building block of the Arbitrum DAO. DAO is a futuristic, hard to precisely define, but very promising use of the blockchain – immutable code on the blockchain enforces decision-making, and the voice of community members with the right to make decisions is represented by a token, in this case ARB. DAO perhaps in the future will completely change, not to say replace, traditional contracts, agreements, “companies” based on the trust mechanism.
🔴 In my subjective opinion, Arbitrum is creating the antithesis of the DAO idea 🔥 Their initial token distribution actually made it impossible in any way to create a fair management system. The distribution of the ARB token implies, among other things, a 27% allocation of the ARB token to the Arbitrum project team, and 17.53% to investors. Individual portfolios, in fact the community creating and using Arbitrum which currently wait for aidrop – is only 11.62% of the allocation. What does this mean?
🔴 The ARB distribution in the basic idea actually determines who will have decision-making power in the DAO. The ~45% of votes, represented by ~45% of ARB tokens (team + investors) at the start determines in the hands of whom decision making will be. I don’t mention about additional 42.76% of the distribution that is DAO treasury.
🔴 Question: is a decentralized organization one that “only” manages using blockchain? If so, what web3 really gives us? There is no decentralization here at the level of management, it is complete nonsense. The voice of the Arbitrum community will not actually matter – voting power is too small. In my subjective opinion, the idea of blockchain is to decentralize at all possible levels, and Arbitrum is an example of an anti-pattern implementation of the web3 idea. It is a pity, a great pity.
🔴 Agree or disagree?