{"id":312563,"date":"2023-05-12T09:00:15","date_gmt":"2023-05-12T03:30:15","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=312563"},"modified":"2024-04-03T10:46:24","modified_gmt":"2024-04-03T05:16:24","slug":"arbitrum-announces-new-reward-program-in-a-bid-to-revive-the-ailing-arb","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/arbitrum-announces-new-reward-program-in-a-bid-to-revive-the-ailing-arb\/","title":{"rendered":"Arbitrum announces new reward program in a bid to revive\u00a0the ailing ARB"},"content":{"rendered":"<ul>\n<li><em>Arbitrum will distribute 3,352 ETH, worth more than $6 million to its DAO.<\/em><\/li>\n<li><em>The cost of sending one ETH on Arbitrum was just $0.23, as compared to $3.14 on Ethereum.<\/em><\/li>\n<\/ul>\n<p>From a two-week high, the daily active users on the popular layer-2 rollup Arbitrum [ARB] descended by more than 17% in the last 24 hours, raising questions over the sustainability of the spike. The daily user graph failed to break through the 300k level and declined to 244k at press time.<\/p>\n<hr \/>\n<p style=\"text-align: center;\">Realistic or not,\u00a0<a href=\"http:\/\/ambcrypto.com\/calculator\/marketcap\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">here\u2019s ARB\u2019s market cap in BTC terms<\/a><\/p>\n<hr \/>\n<p>The trading activity on the Ethereum [ETH] scaling solution remained tepid as the transaction fees followed a flatter trajectory over the last few days.<\/p>\n<p>The falling demand was reflected in the price movement of native token, ARB, which plummeted 16.8% over the last week to $1.12 at press time, as per <a href=\"https:\/\/coinmarketcap.com\/currencies\/arbitrum\/\" target=\"_blank\" rel=\"noopener\">CoinMarketCap<\/a> data.<\/p>\n<p>However, things could change as a positive announcement beckoned the Arbitrum community.<\/p>\n<figure id=\"attachment_312566\" aria-describedby=\"caption-attachment-312566\" style=\"width: 1099px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arb-1.jpg\"><img decoding=\"async\" class=\"wp-image-312566 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arb-1.jpg\" alt=\"\" width=\"1099\" height=\"377\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arb-1.jpg 1099w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arb-1-300x103.jpg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arb-1-1024x351.jpg 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arb-1-768x263.jpg 768w\" sizes=\"(max-width: 1099px) 100vw, 1099px\" \/><\/a><figcaption id=\"caption-attachment-312566\" class=\"wp-caption-text\">Source: DeFiLlama<\/figcaption><\/figure>\n<h4>Arbitrum&#8217;s reward program<\/h4>\n<p>According to an official Twitter announcement, Arbitrum outlined the new decentralized autonomous organization (DAO) revenue mechanism. Through this token holders could reap the rewards of accumulated surplus fees.<\/p>\n<p>Arbitrum will distribute 3,352 ETH, worth more than $6 million to its DAO, as part of the rewards generated through fees.<\/p>\n<p>The protocol further stated that it will create a revenue distribution mechanism which will be achieved through periodic triggering of a smart contract. This will ensure that rewards are distributed in a timely manner.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Big news Arbinauts!<\/p>\n<p>Arbitrum is the only rollup that sends all surplus revenue generated by transaction fees to their respective DAO and it is time for the DAO to collect the funds so far!<\/p>\n<p>Follow along to learn more about it.\ud83e\uddf5\ud83d\udc47<\/p>\n<p>&mdash; Arbitrum (@arbitrum) <a href=\"https:\/\/twitter.com\/arbitrum\/status\/1656090360119017472?ref_src=twsrc%5Etfw\">May 10, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The transaction fee on the Arbitrum One network is composed of two units &#8211; L1 fee and L2 fee. The L1 fee covers the cost of posting a transaction on the Ethereum network. And the L2 fee covers the cost of using resources on the Arbitrum network.<\/p>\n<p>According to <a href=\"https:\/\/l2fees.info\/\" target=\"_blank\" rel=\"noopener\">L2 Fees<\/a>, the cost of sending one ETH on Arbitrum was just $0.23, as compared to $3.14 on Ethereum.<\/p>\n<h4>More reasons to worry?<\/h4>\n<p>The total value of assets held by Arbitrum was $5.82 billion at the time of writing, representing a drop of nearly 5% in the last week, according to <a href=\"https:\/\/l2beat.com\/scaling\/tvl\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">L2Beat<\/a>. Despite this, Arbitrum continued to be the undisputed king among L2s. It accounted for a massive 66% of total value locked (TVL) share.<\/p>\n<figure id=\"attachment_312570\" aria-describedby=\"caption-attachment-312570\" style=\"width: 862px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/ARB-2.jpg\"><img decoding=\"async\" class=\"size-full wp-image-312570\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/ARB-2.jpg\" alt=\"\" width=\"862\" height=\"363\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/ARB-2.jpg 862w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/ARB-2-300x126.jpg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/ARB-2-768x323.jpg 768w\" sizes=\"(max-width: 862px) 100vw, 862px\" \/><\/a><figcaption id=\"caption-attachment-312570\" class=\"wp-caption-text\">Source: L2Beat<\/figcaption><\/figure>\n<hr \/>\n<p style=\"text-align: center;\">Is your portfolio green? Check out the\u00a0<a href=\"http:\/\/ambcrypto.com\/calculator\/arbitrum-profit-calculator\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">ARB Profit Calculator<\/a><\/p>\n<hr \/>\n<p>Investors&#8217; sentiment for ARB turned negative, implying that holders were anticipating more losses. Their concerns were not unfounded. The MVRV Ratio, which was negative, indicated that most holders would entail losses if they sell at current market price.<\/p>\n<p>The daily transaction volume in profit tumbled after recording steep hikes last week.<\/p>\n<figure id=\"attachment_312572\" aria-describedby=\"caption-attachment-312572\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arbitrum-ARB-15.01.49-11-May-2023.png\"><img decoding=\"async\" class=\"wp-image-312572 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arbitrum-ARB-15.01.49-11-May-2023.png\" alt=\"\" width=\"2560\" height=\"867\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arbitrum-ARB-15.01.49-11-May-2023.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arbitrum-ARB-15.01.49-11-May-2023-300x102.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arbitrum-ARB-15.01.49-11-May-2023-1024x347.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arbitrum-ARB-15.01.49-11-May-2023-768x260.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arbitrum-ARB-15.01.49-11-May-2023-1536x520.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/05\/Arbitrum-ARB-15.01.49-11-May-2023-2048x693.png 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-312572\" class=\"wp-caption-text\">Source: Santiment<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Arbitrum outlined the new DAO revenue mechanism through which token holders could reap the rewards of accumulated surplus fees.<\/p>\n","protected":false},"author":70,"featured_media":312650,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,66,3,4,20],"tags":[],"class_list":["post-312563","post","type-post","status-publish","format-standard","has-post-thumbnail","category-altcoins-news","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.4) - 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