• Arbitrum governance forum member proposes a new ARB airdrop initiative to reward early supporters who returned tokens, aiming to rebuild trust and reputation.
• The proposal includes rewards based on returned tokens and offers optional voting delegation, with final decisions resting with the Arbitrum DAO.
• Despite efforts like token buybacks and customizable gas tokens, ARB remains over 70% below its December peak of $1.23.

Arbitrum (ARB) faces yet another scheme that could help boost its reputation. Following the recent token buyback initiative, a recent governance proposal calls for crypto airdrops to incentivize early supporters.

The Arbitrum price fell by over 80% from its December 2024 high of $1.2384, prompting the network to develop interventions toward restoring value.

Arbitrum Governance Vote For ARB Airdrops? What Users Should Know

A new governance forum member introduced an incentive airdrop for early supporters who sent their airdrop to the network’s contract address.

It intends to reinforce community trust and ethical standards, incentivize positive participation in governance, and rebuild reputation.

“Reward wallets that voluntarily returned ARB tokens during the first airdrop (23 March 2023),” read an excerpt in the proposal.

The document proposes crypto airdrops proportional to returned tokens. However, a minimum threshold will ensure meaningful rewards based on eligibility.

 If approved, the allocations would be distributed on-chain, via Arbitrum One (Layer 2), to save fees and promote ecosystem use.

Prospective recipients will be offered an optional temporary voting delegation to encourage governance participation. Nevertheless, the Arbitrum DAO would retain final authority. Any required changes would be communicated via public notice and decided based on a DAO vote.

The proposal has been tabled for community feedback and discussion in the governance forum with three poll options.

“Yes:Proceed with the upgraded ARB token reward for eligible wallets. No:Do not proceed at this time, and Abstain,” it concluded.

Arbitrum Pushes To Rebuild Reputation

It adds to the list of the Ethereum Layer-2 network’s push to rebuild its reputation following a drop of over 80% from its late December peak. Recently, Arbitrum unveiled a token buyback plan to recover from the said fall.  

“We’re reinforcing our commitment to the ecosystem and strengthening our alignment by adding ARB to our treasury through a strategic purchase plan,” the company stated.

Still, Arbitrum’s ARB token remains over 70% below its December 6 high of $1.23. Data on BeInCrypto shows it was trading for $0.33 as of this writing.

Notwithstanding, the project is still pushing. The latest move includes allowing users to choose whichever gas token they want for their project on Arbitrum.

“Builders can now choose whatever gas token they want for their Arbitrum chains. Your Chain, Your Rules,” Arbitrum stated.

Arbitrum Makes Gas Freedom A Feature

Arbitrum articulated that custom gas tokens are also available for any rollups leveraging Ethereum for data availability. The aim is to allow users to configure any customization they want on all Arbitrum chains.

The community was excited about this move, which allows users to choose whether to use the Arbitrum bridge to exchange Ethereum tokens.

“As a builder, I’m in awe, ARB is built differently. While some chains launch & rug memes for fun, others are working on attracting capital, users, and founders,” noted Wals, a popular user on X.

Perhaps, this innovation means Arbitrum heeded outbursts that token buybacks alone were insufficient to rebuild its reputation.

“Pure buybacks alone feel unimaginative and short-sighted—they create scarcity without driving long-term growth or strategic value,”  Yogi, a well-known wallet maxi, wrote recently.