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Staging A Gentle Introduction to Arbitrum DAO (#4)
Co-authored-by: Daniel Goldman <[email protected]>
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id: airdrop-eligibility-distribution | ||
title: $ARB airdrop eligibility and distribution specifications | ||
sidebar_label: Airdrop eligibility and distribution | ||
description: todo | ||
--- | ||
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todo: pull from notion when stabilized |
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id: dao-faq | ||
title: Arbitrum DAO FAQ | ||
sidebar_label: FAQ | ||
description: todo | ||
--- | ||
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id: dao-glossary | ||
title: Arbitrum DAO glossary | ||
sidebar_label: Glossary | ||
description: todo | ||
--- | ||
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todo: pull from notion when stabilized |
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id: gentle-introduction-dao | ||
title: A gentle introduction to Arbitrum DAO | ||
sidebar_label: A gentle introduction | ||
description: todo | ||
--- | ||
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**In a nutshell:** | ||
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- Arbitrum Rollup is an optimistic rollup protocol that makes Ethereum transactions faster and cheaper while inheriting Ethereum's security guarantees [[1]](#footnote-1). Developers use Arbitrum to build user-friendly decentralized apps. | ||
- Governance of the Arbitrum Rollup protocol is now being decentralized through the distribution of the $ARB governance token. | ||
- $ARB tokens can be used to vote on Arbitrum DAO governance proposals, allowing $ARB holders to shape Arbitrum’s future together. | ||
- Token holders will be able to delegate voting power to trusted individuals. These individuals are called delegates. | ||
- **To determine your airdrop eligibility**, connect your wallet to the Arbitrum One network on [gov.arbitrum.io](http://gov.arbitrum.io) and follow the prompts. Do this by (todo). | ||
- **To become an Arbitrum DAO delegate**, review the below material and then **submit your application** (todo). | ||
- **To build decentralized apps on Arbitrum,** check out our [developer docs](https://developer.arbitrum.io/intro/). | ||
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<br /> | ||
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:::caution An important reminder | ||
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The only official website for the $ARB airdrop is TODO. There is no presale. We won’t ever ask for your seed phrase. If you’re ever unsure of anything related to Arbitrum, join our Discord and a member of our team will be happy to help. | ||
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::: | ||
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### Hello! What’s Arbitrum again? | ||
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Arbitrum Rollup is an optimistic rollup protocol that makes Ethereum transactions faster and cheaper. Developers use Arbitrum to build user-friendly decentralized apps. | ||
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Our flagship chain, Arbitrum One, was [launched in 2021](https://offchain.medium.com/introducing-arbitrum-one-our-mainet-beta-ed0e9b63b435). This was quickly followed by the launch of [Arbitrum Nova](https://medium.com/offchainlabs/introducing-nova-arbitrum-anytrust-mainnet-is-open-for-developers-9a54692f345e), a separate [AnyTrust chain](https://medium.com/offchainlabs/introducing-anytrust-chains-cheaper-faster-l2-chains-with-minimal-trust-assumptions-31def59eb8d7) built for developers who need ultra low-cost transactions. In August 2022, Arbitrum One was [upgraded to the Arbitrum Nitro stack](https://medium.com/offchainlabs/arbitrum-nitro-one-small-step-for-l2-one-giant-leap-for-ethereum-bc9108047450), bringing a 7-10x upgrade to Arbitrum’s scaling capabilities. | ||
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Governance of the Arbitrum Rollup protocol is now being decentralized through the distribution of $ARB governance tokens. | ||
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### What's governance? | ||
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Governance is the way that decisions get made. To understand what this means, let’s compare traditional web2 governance to web3 governance. | ||
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**Web2 technologies** are traditionally built by corporations governed by a board of directors. This board is usually a small group of people elected by shareholders. | ||
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When a corporate decision needs to be made, members of the board meet and vote. The board’s decision-making protocols aren’t always visible to shareholders. Although the board has a fiduciary duty to its shareholders, shareholders must trust the board. This is a sort of *social contract* expressed as *corporate legalese* and enforced by *law*. | ||
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**Web3 technologies** (like Arbitrum) are often built by corporations governed *initially* by a board of directors. Once these technologies achieve product-market fit, the board can gradually decentralize its decision-making authority. This is called [progressive decentralization](https://a16z.com/2020/01/09/progressive-decentralization-crypto-product-management/), and it’s what Arbitrum is doing. Progressive decentralization is usually facilitated by three key ingredients: | ||
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1. **DAO formation**: DAO = [Decentralized autonomous organization](https://vitalik.ca/general/2022/09/20/daos.html). The DAO gradually absorbs the board’s decision-making authority. Arbitrum’s DAO is the **Arbitrum DAO**. | ||
2. **Governance token launch**: Ownership of governance tokens represents membership within the DAO. Token holders can vote on DAO proposals. Arbitrum’s governance token is **$ARB**, and will be distributed to eligible wallet addresses via an upcoming airdrop. | ||
3. **Code**: DAO governance is usually facilitated by a series of open source [smart contracts](https://www.fon.hum.uva.nl/rob/Courses/InformationInSpeech/CDROM/Literature/LOTwinterschool2006/szabo.best.vwh.net/smart_contracts_2.html) that enforce a specific decision-making protocol. These *trustless* smart contracts are used to gradually replace the traditional board’s *trusted* social contract. Arbitrum DAO uses smart contracts to codify the decision-making protocol articulated within the Constitution of the Arbitrum DAO. | ||
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### So $ARB is a token, kind of like $ETH? | ||
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Kind of! Let’s compare them: | ||
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**How $ETH and $ARB are similar**: | ||
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- Both are powered by decentralized blockchain technology. | ||
- Both can be owned by any cryptocurrency wallet that supports $ETH. | ||
- Both can be bought, sold, and traded. | ||
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**How $ETH and $ARB are different**: | ||
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- $ETH is a transactional token, while $ARB is a governance token. | ||
- $ETH is used to pay for transaction fees, while $ARB is not. | ||
- Governance of the Arbitrum Rollup protocol is facilitated by $ARB and governance smart contracts, while [Ethereum’s governance](https://ethereum.org/en/governance/) is handled socially. | ||
- Holding $ARB makes you a partial owner of the Arbitrum Rollup protocol, while holding $ETH does not make you a partial owner of the Ethereum’s protocol. | ||
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### Why is this important? Why should I care? | ||
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**In short:** You can use $ARB tokens to defend our shared values of decentralization, self-sovereignty, and sustainable economics. | ||
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**Elaborating**: The Arbitrum Rollup protocol inherits Ethereum’s base-layer security guarantees along with its values. Decentralization of the Arbitrum Rollup protocol's governance represents an important step towards community ownership of Ethereum’s scaling technologies, and further aligns our incentives with those of the Ethereum community at large. | ||
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$ARB tokens represent stake in Arbitrum’s - and by proxy, Ethereum’s - decentralized future. You can use $ARB to collectively determine how we scale Ethereum’s [infinite garden](https://ethereum.foundation/infinitegarden) into the future. | ||
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More generally, possession of $ARB tokens places you at the cutting edge of governance mechanism design. This is a new frontier with society-scale implications, and **your voice matters**. $ARB tokens give you an immutable voice. | ||
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### Cool beans. Am I eligible for the airdrop? | ||
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If you’ve used Arbitrum at any time before the the snapshot date (August 31st, 2022 - [block 22207817](https://arbiscan.io/block/22207817) on Arbitrum One), you’re probably entitled to some $ARB tokens. The easiest way to find out if you’re eligible is to visit [gov.arbitrum.io](http://gov.arbitrum.io/) and follow the prompts. | ||
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### How does Arbitrum’s governance work? | ||
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Governance of the Arbitrum Rollup protocol is driven by two governing bodies: the **Security Council** and the **Arbitrum DAO**. | ||
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- The **Security Council** is a 12-member council of publicly known entities elected by members of the Arbitrum DAO. This council is responsible for maintaining Arbitrum’s security and performance through the selective application of **emergency upgrades**. | ||
- The **Arbitrum DAO** is the worldwide community of $ARB token holders and the delegates that they select. The DAO is responsible for governing Arbitrum and its Security Council. The DAO can use constitutional proposals to modify the Security Council’s powers, or even to eliminate the Security Council entirely. The Security Council’s powers are delegated to the Security Council by the DAO, and are to be exercised in the best interests of the DAO. | ||
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### Who cares about this stuff? | ||
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You can think of our stakeholder groups as a stack of layers. At the top of the stack, we have our **web3 user layer**. All other layers work together to support the web3 user layer: | ||
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- **Web3 user layer:** Includes decentralized app (dApp) users - users of web3 applications. | ||
- **Web3 app layer:** Includes all of the dreamers, hackers, and makers who are building decentralized apps and tooling to support dApp development. | ||
- **Layer 2 (L2):** Includes Offchain Labs, Arbitrum DAO, the Arbitrum community, node operators, sequencers, and other L2 builders who are working hard to fulfill Ethereum’s [rollup-centric roadmap](https://ethereum-magicians.org/t/a-rollup-centric-ethereum-roadmap/4698). | ||
- **Layer 1 (L1)**: Includes consensus & execution layers. | ||
- **Consensus layer (CL):** Includes Prysm and other CL teams who support Ethereum’s beacon chain with CL client software. | ||
- **Execution layer (EL):** Includes Geth and other EL teams building execution-layer client software. | ||
- **Research layer:** Includes academic researchers, citizen scientists, and product managers who are working on the cutting edge of cryptography, mechanism design, and product development. | ||
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### All of these people can govern Arbitrum’s Rollup protocol? | ||
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Yep! As long as they either hold $ARB or are a delegate. | ||
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### What’s a delegate again? | ||
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A delegate is like an elected representative. $ARB token holders can delegate their voting power to delegates. | ||
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### Why would I want to become a delegate? | ||
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There are a lot of people who don’t have time to actively participate in protocol governance. Delegates help these people by offering to vote on their behalf. | ||
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Delegates are a critical component of Arbitrum’s decentralization because they allow our community members to passively participate in the governance of our technology. Although becoming a delegate is a serious responsibility that requires a significant time commitment, it allows you to ensure that Ethereum’s values (and those of the delegators who have entrusted you with their voting power) are forever enshrined within our decisions and decision-making protocols. | ||
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### How are disagreements handled? | ||
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TODO | ||
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### How is consensus reached on DAO proposals? | ||
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TODO | ||
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### I’d like to participate! What are my options? | ||
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1. **Select a delegate** to vote on your behalf. Choose this option if you’re too busy to regularly vote on Arbitrum DAO proposals. See *How to select a delegate* (todo). | ||
2. **Self-delegate** to vote directly on DAO proposals. Great for studious fans of direct democracy. See *Vote on proposals* (todo). | ||
3. **Become a delegate** to vote on behalf of token holders who entrust you with their voting power. Great for our most passionate community members. See *How to become a delegate.* | ||
4. **Participate in governance discussions** on the Arbitrum DAO forum (todo). | ||
5. **Join the community of Arbinauts** on our Discord server (todo). | ||
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### Why can’t I claim my $ARB tokens right now? | ||
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We’re as excited as you are for the airdrop! We also want to ensure that token recipients and DAO delegates have the best possible experience, so we’re using a two-step process: | ||
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1. **Call for delegates**. We are here. As delegates are onboarded, we’ll get closer to the second, more exciting step… | ||
2. **$ARB airdrop**. At this point, you’ll be able to claim $ARB tokens and then use your voting power to shape Arbitrum’s future. | ||
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This two-step process lets us prepare a smooth airdrop experience for you. | ||
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### Wen airdrop? What’s next? | ||
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We’re currently targeting TODO for the airdrop - this is when you’ll be able to claim your tokens on the [governance portal](http://gov.arbitrum.io) - the same portal used to check eligibility. You’ll then be able to select a delegate (link) or delegate to yourself (link). | ||
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If this target date changes, we’ll update this document and we’ll TODO - stay tuned! | ||
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### Where can I learn more? | ||
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You’re in the right place! The following docs elaborate on the finer details of Arbitrum DAO and its underlying governance mechanisms: | ||
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<!-- | ||
- ***Arbitrum DAO: Concepts, principles, and mechanisms***: A beginner-friendly overview of Arbitrum’s governance mechanisms - both on-chain and off-chain. | ||
- ***Arbitrum DAO: Governance contracts***: A more technical overview of Arbitrum’s governance mechanisms and off-chain protocols. Targeted at developers and researchers. | ||
- ***The lifecycle and anatomy of a DAO proposal***: Walks you through the guts of governance. First in terms of beginner-friendly conceptual abstractions, and then in terms of smart contracts and concrete state-changes. | ||
--> | ||
- ***Airdrop eligibility and token distribution details***: Tells you how $ARB eligibility is determined, and how $ARB tokens are being distributed. | ||
- ***Constitution of the Arbitrum DAO***: The human-readable governance protocol that our DAO’s smart contracts implement. | ||
- ***Arbitrum DAO FAQ***: Frequently asked questions, succinctly answered. | ||
- ***Arbitrum DAO Glossary***: An index of governance terms and definitions. | ||
- (todo - index all publishable docs here, make it clear that some of these are stretch docs) | ||
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### Where can I ask for help? | ||
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- TODO | ||
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### Thank you! | ||
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Thank *you*. Developers are using Arbitrum to power the next generation of web experiences partly because of our technology, but mostly because of our community of builders and believers. You’re giving us a lot to look forward to. | ||
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And to think that we’re just getting started! Just over a year ago, it was commonly believed that scaling Ethereum was impossible. Today, Arbitrum powers the world’s most popular web3 experiences (check out that [TVL](https://l2beat.com/scaling/tvl/)). Our team is relentlessly reducing the cost of web3 application development while making it easy for our most beloved web2 apps to progressively decentralize. | ||
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At the same time, diverse communities are organically emerging from within our app ecosystem. Developers are using Arbitrum to run their experiments across all major app categories, including DeFi, gaming, social, art, and NFTs. Who knows what new categories will emerge as the world’s hackers, makers, and dreamers use Arbitrum to tinker at scale. | ||
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In 2022 we saw Arbitrum’s Nitro upgrade, Ethereum’s Merge, our merge with Prysmatic Labs, and the formation of Arbitrum DAO. Without skipping a beat, 2023 has opened with a highly anticipated airdrop and call for delegates. | ||
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We’re moving fast and meeting needs. The specter of Ethereum’s rollup-centric future is upon us. Cheap, fast, and secure transactions are here. New economic games are being unlocked, quietly for now. Thanks for playing! We’re looking forward to a bright future ahead as we decentralize Arbitrum, scale Ethereum, and build a better world together. 💙🌱 | ||
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<br /> | ||
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--- | ||
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**Glossary:** | ||
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- todo, injected from base and linked throughout | ||
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--- | ||
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**FAQ:** | ||
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- todo, injected from base and linked throughout | ||
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--- | ||
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**Footnotes:** | ||
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<a id='footnote-1'>1.</a> See our <a href='https://gas.arbitrum.io/'>gas cost estimator</a> and <a href='https://l2fees.info/'>L2Fees</a> for more information.<br/> | ||
<a id='footnote-2'>2.</a> TODO | ||
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--- | ||
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**Credits:** | ||
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1. Bob for x | ||
2. Alice for y |
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