What are the purposes of ARB?

ARB is a native token of the Arbitrum network, and it serves several purposes within the ecosystem. Here are some of the primary purposes of ARB:

1. Governance: ARB holders have the right to participate in the governance of the Arbitrum network. This includes the ability to propose and vote on changes to the protocol, such as fee adjustments, validator elections, and system upgrades.
2. Transaction Fees: ARB is used to pay for transaction fees on the Arbitrum network. This means that users need to hold ARB in their wallets to interact with dApps and protocols on the network.
3. Staking: ARB can be staked to become a validator on the Arbitrum network. Validators are responsible for processing transactions, maintaining the network, and securing the system. Validators are incentivized when they perform their trustworthy duties correctly: they earn rewards in ARB for their contributions to the network.
4. Liquidity: ARB can be used as a medium of exchange and traded on various cryptocurrency exchanges. This provides liquidity to the token and makes it easy for users to acquire or dispose of ARB as needed.

References

• Alchemy

• Blockchain Council

• Capital