What is Arbitrum (ARB)
Arbitrum is a layer-2 network built on top of Ethereum: it executes transactions on its own, at much lower cost, and publishes the result on the main network, which remains the judge of last resort. Its main chain, Arbitrum One, has been live since 2021 and has for years been the network of this kind with the most value deposited. It hosts most of the decentralised finance applications born on Ethereum, plus a series of native projects.
ARB is the governance token: it grants the right to vote on the network’s decisions, from technology to treasury spending. It is not used to pay fees, which on Arbitrum are paid in ETH. This distinction matters more than it seems, and we come back to it further down.
On Young Platform you can buy and sell the crypto-asset ARB on a spot basis.
Who develops Arbitrum and who governs it
The technology was born in 2018 at Offchain Labs, a company founded by three Princeton University researchers, Ed Felten, Steven Goldfeder and Harry Kalodner. Arbitrum One opened to the public in August 2021 and for two years remained under the company’s control. On 23 March 2023 the ARB token was distributed via an airdrop to those who had already used the network, and from that day decisions passed to the Arbitrum DAO, the assembly of token holders.
The structure has three legs. The DAO votes on proposals, called AIPs, ranging from technical upgrades to budgets. The Arbitrum Foundation handles operations and developer programmes. The Security Council, twelve members elected by the DAO, can intervene on the protocol in an emergency with a majority of nine votes. Offchain Labs continues to write the software, but activates it only after a vote. The ARB supply is 10 billion units: as of 17 August 2026, 92.3% was already in circulation or in the DAO treasury, and the last tranche reserved for the team and investors unlocks in March 2027.
How the network works
Arbitrum uses a technology called an optimistic rollup: it groups transactions into batches, executes them on its own network and publishes the data on Ethereum. It is called “optimistic” because the results are deemed correct unless someone challenges them within a window of around seven days, bringing the proof to Ethereum. Since 12 February 2025, with the BoLD upgrade, anyone can act as a validator and challenge a block, where previously only authorised operators could.
Over the past two years the network has added three pieces. Stylus, since September 2024, allows smart contracts to be written in languages such as Rust and C alongside those in Solidity. Timeboost, since 17 April 2025, changes how transactions are ordered: those who want priority pay in an auction, and the proceeds go to the DAO instead of to the bots that previously competed for it. Elara, live since August 2026, raises the size limit of Stylus contracts from 24 to 96 kilobytes and gives dedicated chains the ability to filter transactions for compliance purposes.
Dedicated chains and Robinhood Chain
Beyond the main network, Arbitrum sells its technology to anyone who wants a chain of their own. The programme is called the Arbitrum Expansion Program: those who use it pay the DAO a share of their revenue. The best-known case is Robinhood Chain, the American broker’s network dedicated to tokenised stocks, which opened its testnet in February 2026 and its mainnet on 1 July 2026. In the month of July alone it paid the DAO around 360,000 dollars, a third of monthly income.
This explains Arbitrum’s position on tokenised real-world assets: in the first half of 2026 it was the leading network worldwide for this type of asset, with over 2,000 instruments issued, and in the first quarter PayPal’s stablecoin reached a peak of 475 million dollars on the network. In the same half-year the network recorded 478 million transactions and an average monthly stablecoin volume above 70 billion dollars. All figures come from the Foundation’s half-year report.
April 2026: when the Security Council froze 71 million
On 18 April 2026 an attack on Kelp DAO’s bridge minted unbacked rsETH tokens out of thin air, which were then used to borrow ETH on Aave. Part of those funds had ended up on Arbitrum. On 21 April the Security Council, with nine votes out of twelve, froze 30,766 ETH, around 71 million dollars, acting on input from law enforcement. On 25 April Aave, Kelp and three other protocols asked the DAO to release those funds to restore rsETH’s backing, and the request passed the vote.
The episode opened a debate that concerns anyone holding ARB. On one hand, the freeze made it possible to recover a significant share of the stolen funds. On the other, it showed that twelve people can block funds on a network that calls itself decentralised. The Security Council’s power is written into the DAO’s constitution and was used as intended, but the case remains the precedent to look at to understand how Arbitrum’s governance really works.
What the ARB token is for
ARB has a single function, governance: holders vote, or delegate their vote, on every DAO proposal. It does not pay fees and is not staked for the security of the network, which depends on Ethereum. So it is important to understand where the revenue goes. Arbitrum earns from sequencer fees, Timeboost auctions and the shares paid by dedicated chains: in the first half of 2026, 6.19 million dollars flowed into the DAO, with a margin above 97%. That money goes into the DAO treasury, not to token holders. As of 30 June 2026 the treasury held 125 million dollars in assets other than ARB, plus the billions of ARB not yet distributed.
What to do with that treasury is the DAO’s permanent discussion. Over time the DAO has voted on rewards for those who delegate and on incentive programmes for applications, and has discussed proposals to buy back the token. ARB’s future depends largely on these decisions, and holders can influence them with their vote.
What to consider before buying ARB
Beyond the volatility common to all crypto-assets, there are three specific elements. The first is supply: until March 2027 the tokens reserved for the team and investors continue to unlock, 7.7% of the total as of 17 August 2026. The second is competition: Base, Optimism and the other layer-2 networks compete for the same applications and users, and Arbitrum’s position is not guaranteed. The third is governance: the token grants no right to revenue, and the way the DAO spends the treasury, or the Security Council’s decision to intervene, are outside the individual holder’s control. On the price side, ARB reached its all-time high in January 2024.
If you want to transfer ARB to an external wallet, always check the supported destination network in the app: ARB exists on both Ethereum and Arbitrum One, and sending on the wrong blockchain can result in the permanent loss of funds.
In summary
Arbitrum is Ethereum’s largest layer-2 network by value deposited, governed by a DAO since 2023 and in 2026 the base for Robinhood’s tokenised stocks and for real-world assets. The ARB token is for voting, not for collecting: revenue goes to the common treasury. Understanding this difference, and how the DAO decides, is the best way to determine whether and how to add ARB to your crypto-asset portfolio. For the parent network, see the Ethereum page; for the other layer-2 networks, the pages for Optimism and Polygon.
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