Arbitrum eyes redemption with targeted airdrop as 97% of ARB holders experience losses

Arbitrum’s 2023 airdrop was among the most-watched developments in the Ethereum L2 sector.

However, things went against expectations, and today, 97% of ARB holders are sitting at a loss, as per IntoTheBlock data.

With only 2% of investors “In the Money” and 1% at break-even, Arbitrum DAO has taken steps to restore community confidence.

A governance member has introduced a proposal to launch airdrops to reward loyal adopters who returned assets after the 23 March 2023 airdrop.

The initiative isn’t only about token redistribution. It prioritizes restoring trust, recognizing integrity, and ensuring ethical participation.

The proposal read:

This upgraded proposal not only rewards early ethical supporters but also integrates them into the DAO’s ongoing governance and onboarding initiatives, maximizing both impact and visibility.

Arbitrum’s loyalty airdrop

The proposal emphasizes rewarding “wallets that voluntarily returned ARB tokens during the first airdrop (23 March 2023).”

The DAO perceives the decision to return the assets as an ethical move.

The early adopters might have wanted to give back to the community or felt they received too many tokens.

The proposal underscores the team’s dedication to blending utility and ethics, incentivizing proper behavior with everything tied to governance.

Why the airdrop matters

Arbitrum’s image remains bruised as prolonged price declines sent most holders underwater.

The crypto saw all holders experiencing losses at some point.

Incentivizing ethical participation amidst turmoil is more than financial support.

Rewarding participants who returned assets after the initial giveaway shows the benefits of ethics in the crypto realm.

The project will recognize the loyal users in DAO communications and might enjoy priority in onboarding programs and governance boot camps.

Moreover, the proposal invites these high-integrity users to participate in shaping Arbitrum’s future.

The program might renew sentiments from the broad cryptocurrency community and media.

That might create a favorable Launchpad for ARB’s recovery.

The proposal, while gaining massive traction, remains in the discussion phase.

It will gather community feedback after going live before approval voting.

ARB’s price action

The alt trades at $0.3345 after gaining 0.44% and 18% in its daily and weekly charts.

Despite the notable recovery, long-term timeframes reveal ARB’s struggles.

It has lost around 15% in the past month.

Moreover, the over 70% slump on the 1-year chart explains the deteriorated profitability.

ARB has remained downbeat despite the project’s multiple efforts, including buybacks, to rescue it.

Meanwhile, Arbitrum remains committed to navigating its challenges as it eyes robust recoveries.

The alt exhibits a short-term bullish structure.

A decisive move past $0.36 could catalyze a more than 30% recovery for ARB.

The post Arbitrum eyes redemption with targeted airdrop as 97% of ARB holders experience losses appeared first on Invezz