Key Takeaways
- The Arbitrum airdrop aimed to decentralize the network and empower early users with the ARB governance token;
- Despite increased adoption and successfully establishing a DAO, it struggled with long-term user retention;
- Blockchain projects use diverse strategies, as seen in Arbitrum's governance focus versus BitDegree's educational approach and Binance Megadrop's platform incentives.
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For users in the blockchain world, airdrops have become a great way to get free tokens. But the Arbitrum airdrop seems to offer more than just giveaways; it represented an important step in the decentralization of a layer-2 solution, giving its early community a voice in its future.
Regarding this approach, let's explore why this distribution was noteworthy. But wait, can I still get Arbitrum airdrops? Unfortunately, no, as the claiming period ended in September 2023.
For alternatives, you can join BitDegree’s Season 7 Airdrop, which is currently offering a $30,000 prize pool. Another option is Binance’s Megadrop, which grants users early access to select Web3 projects before they are listed on the exchange. Nevertheless, let's find out more about the Arbitrum token airdrop so you can prepare for any future drops.
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Table of Contents
- 1. What Is the Arbitrum Airdrop?
- 1.1. What Is Arbitrum?
- 1.2. Date and Timeline
- 1.3. Tokenomics Breakdown
- 2. Arbitrum Airdrop Criteria
- 2.1. Qualifying Actions on Arbitrum One
- 2.2. Qualifying Actions on Arbitrum Nova
- 3. How People Claimed Their Airdrops
- 4. What Happened After the Airdrop?
- 5. Comparisons With Other Airdrops
- 5.1. BitDegree Airdrop
- 5.2. Binance Megadrop
- 5.3. SushiSwap Airdrop
- 6. Conclusions
What Is the Arbitrum Airdrop?
The Arbitrum airdrop refers to the distribution of free ARB tokens, the native governance token of the network, to its early adopters and users. Held on March 23, 2023, the token distribution was important for community engagement.[1] Early users who had interacted with the blockchain received ARB rewards, building a sense of ownership and loyalty.
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The event also marked Arbitrum's transition into a decentralized autonomous organization (DAO), giving holders the power to participate in governance decisions. Instead of relying on a centralized entity, the community had control over the blockchain’s future, such as key protocol upgrades, treasury allocations, and ecosystem developments.
Beyond governance, the airdrop encouraged engagement by increasing on-chain activities. These included staking, liquidity provision, and other network features. Additionally, the past giveaway served as a powerful marketing tool. Recipients often shared their experiences on social media, increasing awareness and drawing in new users who saw the potential of the layer-2 solution.
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What Is Arbitrum?
Let's understand how Arbitrum works and its different networks to further gauge the importance of the ARB token airdrop.
Arbitrum is a Layer 2 scaling solution for Ethereum that helps reduce transaction fees and improve speed without compromising on security.
Developed by Offchain Labs, it uses Optimistic Rollups to process transactions off-chain[2] before settling them on the main network. Applying this makes the process faster and more cost-efficient while keeping some information private.
Arbitrum can handle about 40,000 transactions per second, while, for instance, Ethereum can only do around 14 TPS. Also, using the former can be even cheaper, as its fees are comparatively lower.
As an L2 ecosystem, it consists of different networks. The primary ones include:
- Arbitrum One. This is the main and most widely used network, supporting decentralized applications (dApps) and providing a faster, cheaper alternative to Ethereum while maintaining its security.
- Nitro. It was a major upgrade to Arbitrum One launched on August 31, 2022. It significantly improved transaction speed, lowered fees, and enhanced compatibility with Ethereum, making it easier for developers to build on the network.
- Arbitrum Nova. It’s a separate protocol designed for ultra-low-cost transactions. Nova is optimized for applications like gaming and social platforms, where frequent transactions need to be processed cheaply. It uses AnyTrust technology, which allows even lower fees while maintaining decentralization.
The chain users chose directly influenced the number of ARB tokens they received during the airdrop. Plus, early adopters who were active before the snapshot received more tokens, as Arbitrum made sure to reward those who played a key role in its growth and adoption.
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Now, ARB is the governance token of the network, giving holders the power to participate in decision-making for the ecosystem.
Unlike ETH, which is used for gas fees on Arbitrum, ARB is purely a governance token, meaning it doesn’t directly pay for transactions but allows users to vote on proposals that shape the network’s future.
The token was introduced as part of the blockchain's transition to a DAO. With this setup, the community makes decisions about upgrades, funding, and other protocol changes instead of a centralized team.
Furthermore, Arbitrum's airdrop date in March 2023 was a major step toward decentralization, distributing rewards to early adopters. Holding ARB ensures that the user plays a role in how the ecosystem evolves over time.
Date and Timeline
In short, the Arbitrum airdrop date for launching free tokens was on March 23, 2023, but a lot happened before that. It wasn’t just a sudden giveaway, as there was a long process leading up to it.
It started when the Arbitrum One network first took a step forward with the Nitro upgrade on August 31, 2022. This step helped improve transaction speed, lower fees, and made the network more efficient. At the same time, the blockchain was laying the groundwork for something even bigger: the launch of its governance token, ARB, and an incentive program to reward early users.
To determine token recipients, the team captured snapshots of user activity. Snapshots for Arbitrum Nova were taken on October 2, 2022, and February 6, 2023. For Arbitrum One, a single snapshot was taken on the same date, February 6, 2023. These snapshots recorded each user’s engagement with the network and their level of participation.
Finally, on March 16, 2023, the ARB token and airdrop were officially announced, giving users a week to prepare before the claiming period began on March 23, 2023. Those who met the eligibility criteria could claim their rewards until September 24, 2023, after which any unclaimed assets were returned to the Arbitrum DAO treasury.
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Tokenomics Breakdown
Following the approval of the Arbitrum Improvement Proposals (AIPS) 1.1 and 1.2, the distribution was set as follows:
Percentage | Total tokens | Who Received It |
|---|---|---|
35.28% | 3.528 billion | The DAO's treasury |
26.94% | 2.694 billion | Team and contributors + advisors |
17.53% | 1.753 billion | Investors |
11.62% | 1.162 billion | Users (sent to wallet addresses) |
7.5% | 750 million | Arbitrum Foundation |
1.13% | 113 million | DAOs building apps on Arbitrum |
Table: ARB token distribution
In total, 12.75% was given to the community (platform users and decentralized organizations), strengthening the network's collective governance.
It’s important to note that this allocation didn’t come from the DAO treasury or the Foundation’s wallet.
It was part of the initially planned airdrop distribution, which was set aside separately until all DAO treasury wallets were collected and verified.
As part of the token distribution, other projects in the ecosystem also received allocations. For example, SushiSwap received 4,249,418 ARB, while the CTRL Wallet (formerly XDEFI) got 75,000 ARB.
Arbitrum Airdrop Criteria
In essence, Arbitrum's airdrop criteria adopted a points-driven system linked to users' engagement with the network. Each participant could earn up to 15 points. This approach ensured that tokens were allocated to those who actively interacted with the blockchain, rather than being distributed at random.
Most of the eligibility criteria were for users of Arbitrum One, giving priority to those who had been actively using the platform for a while. Arbitrum Nova, a newer chain, also had some requirements, though on a smaller scale.
Arbitrum One remained the main focus, and including Arbitrum Nova in the airdrop was a strategy to get more users interested in the innovative network.
Qualifying Actions on Arbitrum One
Users could earn points on Arbitrum One by completing a variety of actions, totaling 14 distinct criteria. These included:
- Bridging funds into the network;
- Conducting transactions during certain periods;
- Having a specific number of transactions;
- Accumulating a certain amount of cumulative transaction value.
The table below breaks down how to qualify for the Arbitrum airdrop in the previous pass by showing the different ways users could earn points:
Category | Criteria | Points |
|---|---|---|
Bridging funds | Bridged over $10,000 | 1 |
Bridged over $50,000 | 1 | |
Bridged over $250,000 | 1 | |
Transaction frequency | Transactions in 2+ distinct months | 1 |
Transactions in 6+ distinct months | 1 | |
Transactions in 9+ distinct months | 1 | |
Total transactions/Smart contract interactions | More than 4 | 1 |
More than 10 | 1 | |
More than 25 | 1 | |
More than 100 | 1 | |
Cumulative transaction value | Exceeded $10,000 | 1 |
Exceeded $50,000 | 1 | |
Exceeded $250,000 | 1 |
Table: The point structure for Arbitrum One users
Each completed action would give a point, allowing users to accumulate up to 15 points maximum. These criteria ensured that both casual and high-volume traders had the opportunity to earn airdrops based on their engagement levels.
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Qualifying Actions on Arbitrum Nova
The requirements on Arbitrum Nova were simpler and fewer in number, focusing on encouraging basic usage of this newer chain. Users could earn points by:
- Bridging funds into Arbitrum Nova;
- Conducting more than a specific number of transactions.
Additionally, points earned through activities on Arbitrum Nova had a slightly different weighting compared to those earned on the previous platform.
Using this new chain could get you a maximum of 4 points in total. Alternatively, if you already had 4 or more points from your activity on Arbitrum One, moving to Nova would give you just one extra point. In short, the engagement on the latter platform was considered a bonus factor in determining who obtained the rewards and how much they received.
Most of all, the timing of user activity, specifically before or after the Arbitrum Nitro launch on August 31, 2022, was crucial in determining points.
Early adopters who were active before the upgrade received double the points compared to the activities done afterward. However, to ensure fairness, if a wallet only qualified for the airdrop after Nitro went live, all their points were treated as post-upgrade points.
Here's a table showing the token distribution based on points earned, taking into account Arbitrum airdrop tiers and the differences between pre- and post-Nitro activity.
Points (Pre-Nitro) | Tokens | Points (Post-Nitro Equivalent) | Tokens |
|---|---|---|---|
Less than 3 | Not eligible | Less than 3 | Not eligible |
3 | 1,250 | 3 | 625 |
4 | 1,750 | 4 | 875 |
5 | 2,250 | 5 | 1,125 |
6 | 3,250 | 6 | 1,625 |
7 | 3,750 | 7 | 1,875 |
8 | 4,250 | 8 | 2,125 |
9 | 6,250 | 9 | 3,125 |
10 | 6,750 | 10 | 3,375 |
11 | 7,250 | 11 | 3,625 |
12 or more | 10,250 | 12 or more | 5,125 |
Table: Comparison of tokens earned before and after Nitro
The details above clearly reflect the dual approach of rewarding early adopters while ensuring fairness for later users in the Arbitrum airdrop.
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How People Claimed Their Airdrops
The ARB token airdrop has now been completed, but if you're curious about how people claimed their tokens, I'll walk you through the steps they followed. Who knows, when another pass drops in the future, you'll already know the nitty-gritty.
When you pick a delegate, they don’t receive your tokens but only your voting power. Still, you can choose to keep the rights to yourself.
Once received, the rewards could be withdrawn or staked, depending on user preference. Note that this guide serves as a reference for how the claiming process worked, which may be useful for future airdrops, but details may later change.
What Happened After the Airdrop?
The Arbitrum airdrop in March 2023 was an important event that impacted the network's adoption, user activity, and the overall crypto ecosystem. With millions of tokens distributed, the event led to increased engagement, trading, and governance participation.
Here’s a breakdown of the key outcomes:
Metric | Result |
|---|---|
Number of users | 625,100+ |
Total tokens airdropped | 1.275 billion |
Estimated average profit | $1,350 |
Maximum profit per address | $13,800 |
Airdrop completion rate | 93% |
Table: Arbitrum airdrop metrics
However, despite a six-month claim period, approximately 69 million ARB tokens remained unclaimed by the deadline on September 24, 2023. These assets, valued at around $59 million at the time, were transferred to the Arbitrum DAO Treasury following a community vote in favor of this action. The action increased internal holdings to nearly $3 billion worth of ARB tokens.
Thankfully, the network continued to see high transaction volumes and active user participation after the giveaway.
The token distribution contributed to increased Total Value Locked (TVL) in the blockchain's DeFi protocols, as many users reinvested their airdrop gains into the ecosystem.
Moreover, holders have actively participated in decision-making, voting on initiatives like the Gaming Catalyst Program and staking proposals. Discussions about a second token allocation, dubbed the "Builder Appreciation Drop", also occurred, indicating ongoing efforts to drive engagement.
Arbitrum also maintained a strong presence as a top Layer-2 Ethereum scaling solution by retaining a substantial share of ETH bridging activity. This helped secure its position as the second-largest destination after Polygon.
Still, the number of new wallets interacting with the network declined over time, suggesting that much of the initial interest was driven by the token distribution itself. While it brought many users, most of them were likely motivated by short-term financial gains. Retention rates declined after the giveaway period, falling below pre-airdrop levels.
Additionally, the ARB token showed volatility post-airdrop. Prices initially increased due to speculation and trading, but later decreased as recipients sold their tokens for profit. Large holders, or "whales," also influenced price swings.
Concerns also surfaced regarding the concentration of ARB token holdings among a relatively small number of addresses and exchanges. People were worried that it would affect how decentralized the network’s governance really was.
This just goes to show that one-time incentives like airdrops aren’t always enough to keep users engaged long-term or stop people from trading just to make a quick profit.
Overall, the Arbitrum airdrop successfully promoted adoption, trading activity, and governance participation. However, like many projects, it faced challenges in sustaining long-term user retention.
Comparisons With Other Airdrops
Airdrops have become a popular way for cryptocurrency projects to distribute tokens, build their user base, and incentivize engagement. While many follow similar strategies, each event has its own unique approach, tailored to its goals, community, and vision for growth.
Now, let’s explore how different platforms, such as BitDegree or SushiSwap, execute their airdrops. Understanding their methods can give you deeper insights into the various ways token distributions contribute to the broader blockchain ecosystem.
BitDegree Airdrop
Unlike traditional blockchain airdrops, BitDegree’s Season 7 airdrop focuses on education and community engagement rather than rewarding past network usage.
Through its Missions, BitDegree rewards users for earning while learning, making the process both educational and engaging.
Participants can qualify by completing tasks and quizzes or referring new users. By doing the aforementioned actions, you earn Bits, the in-game points that determine the eligibility for various rewards and Lucky Draws.
Interestingly, BitDegree distributes a share of a $30,000 prize pool based on engagement levels instead of a fixed token allocation per user. Along the way, users earned additional rewards from partner platforms, including BYDFi, Uphold, and dYdX. They offer extra incentives (each worth 1,000 USDC) as part of the exciting event.
For example, BYDFi offered micro prizes distributed through a Lucky Draw based on the amount of Bits accumulated during the airdrop season:
- 3 winners receive 100 USDC each;
- 10 winners receive 50 USDC each;
- 20 winners receive 10 USDC each.
To qualify for the stake, users must have their Kraken or Binance crypto wallet linked to their Missions account. Additionally, you need to accumulate a total of 10,000 Bits in Season 7.
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Binance Megadrop
Binance Megadrop and the Arbitrum airdrop both distribute tokens, but they work differently. The former rewards users for holding BNB and doing Web3 tasks. It’s an ongoing feature that focuses on its users and platform promotion.
Binance Megadrop gives people a chance to grab tokens from interesting new Web3 projects – often before anyone else can even buy them on the exchange.
First, verify your Binance account and check that your country is eligible, since regional rules block participation in places like the US, UK, or Canada. Next, lock up some of your BNB in a Simple Earn “Locked Product”.
The longer you commit (30, 60, 90, or 120 days), the bigger the score multiplier that position earns. Daily snapshots average your balance each hour, so keeping BNB locked for the full day avoids dilution.
Then, hop into Binance Wallet and tackle the project’s Web3 quests. Finish every single one to unlock both a bonus and a quest multiplier that can double or triple your locked-BNB score.
Skip even a single task, and the multiplier drops back to 1.
Megadrop tallies your final score with a simple formula – (Locked BNB Score × Quest Multiplier) + Quest Bonus – and uses your share of the total pool to calculate how many new tokens you’ll receive. After the participation window closes and the token lists on Binance, your airdrop lands in your Spot Wallet automatically.
Because Megadrop sits alongside Launchpool and the new HODLer Airdrops, the same locked BNB can earn three separate streams of rewards at once, making it one of the most capital-efficient ways to farm new listings on the platform.
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SushiSwap Airdrop
SushiSwap’s airdrop was one of the most controversial and aggressive strategies in DeFi history. Launched in 2020, the DEX was originally a fork of Uniswap, but it quickly gained attention by implementing a “vampire attack” strategy to draw liquidity away from its former platform.
It directly targeted Uniswap liquidity providers (LPs) by rewarding them with SUSHI tokens if they migrated their liquidity to the new platform.
The process worked as follows:
1
Liquidity mining program. Uniswap LPs who staked their LP tokens in SushiSwap's contracts were rewarded with SUSHI tokens. The rewards were not only tradable assets but also governance rights, allowing users to vote on protocol decisions.
2
Higher rewards. This DEX offered higher yield incentives compared to Uniswap, attracting liquidity providers who were looking for better returns.
3
Liquidity migration. After attracting enough liquidity, SushiSwap automatically transferred over $1 billion worth of assets from Uniswap to its platform.
Within weeks, it became one of the largest DEXs by total value locked (TVL), proving that aggressive incentives could work in a competitive landscape.
That said, the project suffered a major setback when its anonymous founder, Chef Nomi, withdrew millions of dollars worth of SUSHI tokens from the developer fund, causing panic in the community. Although Chef Nomi later returned the funds, the event highlighted the risks of anonymous leadership in DeFi projects.
Despite the initial turbulence, the token distribution helped create one of the most decentralized and community-driven governance models within the space.
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Conclusions
Ultimately, the Arbitrum airdrop in March 2023 could be a good illustration of how a well-executed token distribution impacted a blockchain project. Beyond rewarding early users with free ARB tokens, it initiated the decentralization of the network, empowering its community with governance rights and encouraging more engagement.
Even though keeping everyone engaged after free token distribution was a bit of a struggle, the event had a huge impact on getting people to use Arbitrum, trade the token, and get their decentralized organization up and running.
Now, while you might've missed out on the Arbitrum token distribution, there are still some opportunities out there. For example, BitDegree is running the Season 7 Airdrop with a $30,000 prize pool up for grabs. Plus, it's a whole new vibe, focusing on learning and community with a side of sweet rewards.
Get your wallet connected and jump into BitDegree Missions to start earning Bits. Maximize your learning and earning efforts to increase your reward potential.
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. Allen, D. W. E., Berg C., Lane, A. M.: 'Why Airdrop Cryptocurrency Tokens?';
2. Guom H., Yu, X.: 'A Survey on Blockchain Technology and Its Security'.
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