Arbitrum, a famous Layer 2 project on Ethereum, recently announced that they will be airdropping a governance token on March 23 with the ticker symbol ARB. This follows Arbitrum’s prior announcement that it intends to transition to a fully decentralized model. This airdrop will account for 12.75% of the token’s entire supply and will be given to users who have been active on the network within the past year.

According to the official blog post, ARB will mark the official transition for Arbitrum into a Decentralized Autonomous Organization (DAO). This means that holders of ARB will have the ability to vote on critical decisions governing Arbitrum One and Arbitrum Nova, which are networks that enable users to conduct transactions on the Ethereum blockchain at higher speeds with reduced fees.

Offchain Labs, the company developing Arbitrum, touted that the ARB token will make the ecosystem more decentralized than other scaling chains. This is despite the fact that the foundation intends to grant a substantial amount of tokens to its investors and core contributors (44%) of the total supply. However, it was made amply clear that the ARB token won’t be used for paying transaction fees on the network.