[Crypto projects](https://revain.org/projects/) › Arbitrum

# Arbitrum (ARB): how it works, supply and reviews

## In short

- **Type**: Ethereum layer 2: rollup that executes off-chain and posts compressed data and state commitments to Ethereum
- **Initial supply**: 10 billion ARB at launch; inflation of at most 2% per year can be enabled by the DAO
- **Risks and caveats**: The sequencer that orders transactions is centralised and run by the Arbitrum Foundation; it can delay a transaction by up to 24 hours.
- **Checked**: 31 October 2026

## Key facts

- **Ticker**: ARB
- **Official site**: [arbitrum.io](https://arbitrum.io/)

Key facts checked on 31 October 2026 against official sources.

## What is Arbitrum

Arbitrum is a family of Ethereum layer-2 chains, led by the optimistic rollup Arbitrum One, that make Ethereum transactions faster and cheaper while settling on Ethereum. ARB is its governance token: it is used to vote in the ArbitrumDAO and does not pay transaction fees, which are paid in ETH.

## Network and consensus

| Parameter | Details |
|---|---|
| Type | Ethereum layer 2: rollup that executes off-chain and posts compressed data and state commitments to Ethereum |
| Consensus | Optimistic rollup with fraud proofs (BoLD); one honest validator is enough to keep the chain secure |
| Validators | Validation on Arbitrum One is permissionless under the BoLD protocol |
| Smart contracts | Yes; Nitro runs a modified fork of Geth, so most Ethereum code runs unchanged |
| Launched | Arbitrum One launched in 2021; upgraded to Nitro in August 2022 |

## Supply and issuance

| Parameter | Details |
|---|---|
| Initial supply | 10 billion ARB at launch; inflation of at most 2% per year can be enabled by the DAO |
| Initial distribution | ArbitrumDAO treasury 35.28%, team and contributors 26.94%, investors 17.53%, plus airdrops and the Foundation |
| Vesting | Team, contributor and investor tokens unlock monthly over four years from 16 March 2023, the first on 16 March 2024 |
| Airdrop | The ARB airdrop ran from 23 March to 24 September 2023; there was no presale |

On 7 March 2024: 1,537,000,000 ARB in circulation, 10,000,000,000 ARB in total (source: [Arbitrum Foundation governance docs, Token Circulating Supply (latest figure published)](https://docs.arbitrum.foundation/token-supply)).

## What ARB is used for

- Voting on ArbitrumDAO governance proposals
- Delegating voting power to delegates
- ARB is not used to pay transaction fees; fees are paid in ETH

## Who develops and governs Arbitrum

- **Governance**: The ArbitrumDAO of ARB holders and delegates controls Arbitrum One and Nova under the DAO Constitution
- **Security Council**: A 12-member Security Council, elected by the DAO, can act through a 9-of-12 multisig in emergencies
- **Foundation**: The Arbitrum Foundation supports development and governance and operates under Cayman Islands law
- **Developer**: Offchain Labs builds the Nitro software stack
- **Open source**: Source available: Nitro uses a Business Source License with a grant to run nodes on public Arbitrum chains

## History

| Date | Event |
|---|---|
| 2021 | Arbitrum One, the flagship rollup chain, launches; Arbitrum Nova (AnyTrust) follows. |
| August 2022 | Arbitrum One upgrades to the Nitro stack. |
| 16 March 2023 | ARB token generation event; the airdrop opens on 23 March 2023. |
| September 2026 | Arbitrum Nova is minimised by DAO vote: its data now goes directly to Ethereum. |

## Security and audits

- Security audit reports for Nitro are published in the developer docs.
- If a malicious proposal passes or 9 Security Council members are compromised, users would have several weeks to withdraw to Ethereum before it takes effect.

## Official ARB contracts

| Network | Contract address |
|---|---|
| Arbitrum One | [0x912CE59144191C1204E64559FE8253a0e49E6548](https://arbiscan.io/address/0x912CE59144191C1204E64559FE8253a0e49E6548) |
| Ethereum (bridged) | [0xB50721BCf8d664c30412Cfbc6cf7a15145234ad1](https://etherscan.io/address/0xB50721BCf8d664c30412Cfbc6cf7a15145234ad1) |
| Arbitrum Nova (bridged) | 0xf823C3cD3CeBE0a1fA952ba88Dc9EEf8e0Bf46AD |

ARB is an ERC-20 token native to Arbitrum One, with bridged versions on Ethereum and Arbitrum Nova.

## Risks and caveats

- The sequencer that orders transactions is centralised and run by the Arbitrum Foundation; it can delay a transaction by up to 24 hours.
- A compromise of 9 of the 12 Security Council members could put the system and users' funds at risk.
- Large team and investor allocations unlock monthly until March 2027.

## Official links

- Website: [arbitrum.io](https://arbitrum.io/)
- Foundation: [arbitrum.foundation](https://arbitrum.foundation/)
- Docs: [docs.arbitrum.io](https://docs.arbitrum.io/)
- Governance docs: [docs.arbitrum.foundation](https://docs.arbitrum.foundation/)
- Source code: [github.com/OffchainLabs/nitro](https://github.com/OffchainLabs/nitro)
- Governance forum: [forum.arbitrum.foundation](https://forum.arbitrum.foundation/)

## Questions and answers

**What is Arbitrum?**

Arbitrum is a family of Ethereum layer-2 chains, led by the optimistic rollup Arbitrum One, that make transactions faster and cheaper while settling on Ethereum.

**What is the ARB token used for?**

ARB is a governance token for voting in the ArbitrumDAO. Transaction fees on Arbitrum are paid in ETH, not ARB.

**What is the supply of ARB?**

The initial supply was 10 billion ARB, with optional inflation of up to 2% a year. 1.537 billion ARB circulated on 7 March 2024, the latest figure published.

**Who runs Arbitrum?**

The ArbitrumDAO governs the chains, an elected Security Council handles emergencies, the Arbitrum Foundation runs the sequencer, and Offchain Labs builds Nitro.

**Was there an ARB airdrop?**

Yes. The airdrop ran from 23 March to 24 September 2023; there was no presale.

## Sources

- [Arbitrum DAO docs — A gentle introduction to the ArbitrumDAO](https://docs.arbitrum.foundation/)
- [Arbitrum DAO docs — Airdrop eligibility and distribution](https://docs.arbitrum.foundation/airdrop-eligibility-distribution)
- [Arbitrum DAO docs — Token Circulating Supply](https://docs.arbitrum.foundation/token-supply)
- [Arbitrum DAO docs — State of progressive decentralization](https://docs.arbitrum.foundation/state-of-progressive-decentralization)
- [Arbitrum DAO docs — DAO contract addresses](https://docs.arbitrum.foundation/deployment-addresses)
- [The Constitution of the ArbitrumDAO](https://docs.arbitrum.foundation/dao-constitution)
- [Arbitrum developer docs — gentle introduction](https://docs.arbitrum.io/welcome/arbitrum-gentle-introduction)
- [Arbitrum Foundation — home page](https://arbitrum.foundation/)
- [Nitro README (GitHub)](https://raw.githubusercontent.com/OffchainLabs/nitro/master/README.md)

## More in this section

- [XPR Network (XPR)](https://revain.org/projects/proton/)
- [Enjin Coin (ENJ)](https://revain.org/projects/enjin-coin/)
- [Wrapped Bitcoin (WBTC)](https://revain.org/projects/wrapped-bitcoin/)
- [Avalanche (AVAX)](https://revain.org/projects/avalanche/)
- [BNB Chain (BNB)](https://revain.org/projects/bnb/)
- [Internet Computer (ICP)](https://revain.org/projects/internet-computer/)
- [All Crypto projects →](https://revain.org/projects/)

## How voting works

Votes are anonymous and carry no text. Each device has one vote per item; press the same button again to remove it. Cloudflare Turnstile checks that a person is voting. We keep a random device ID in a cookie and a salted hash of the IP address to limit abuse — no names, no accounts. Votes are visitors’ opinions, not investment advice.

Page updated: 2026-10-31

---
Source: https://revain.org/projects/arbitrum/