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d. Now you will be given tokens in airdrop accordingly to all of the activities which you had performed on the Arbitrum chain.</p><p id="c004">You must have earned a minimum <b>3 points</b>, otherwise, you will get nothing. On 3 points you will get 1250 tokens, according to that the more points you have the more tokens you will get.</p><figure id="9d74"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/0*SkfLoPW5A3hcGE3-"><figcaption>Photo by <a href="https://unsplash.com/@shubzweb3?utm_source=medium&amp;utm_medium=referral">Shubham's Web3</a> on <a href="https://unsplash.com?utm_source=medium&amp;utm_medium=referral">Unsplash</a></figcaption></figure><h2 id="07b9">Tokonomics</h2><p id="f635">The total supply of ARB is 10 billion, of which there will be a token inflation of 2% every year. The inflation is very low, so there will be no damage to the health of the token.</p><p id="b367">Initially, a 5.5 billion supply will come into the market and the remaining supply will be locked for 1 year. Also, the supply of Team and Investor will not come into circulation in the market for 1 year. When the vesting period of their tokens starts, it will take a total of 3 years for the supply to come into circulation.</p><blockquote id="cb2b"><p>Unlocking and inflation of supply are all under tight control. There will be no problem even if you go on buying such coins on average in every deep.</p></blockquote><p id="76d1">In many tokens, after some time the supply is unloaded in the market so much that the growth of the token will become impossible. We have seen this in many gaming coins and new projects. It is risky to hold such coins long term but there is no such problem in Arbitrum.</p><ul><li>42.78% — DAO Treasury</li><li>26.94% — Team</li><li>17.53%- Investor</li><li>11.62%- Airdrop</li><li>1.13%- Building Apps Airdrop</li></ul><h2 id="d783">DAO</h2><p id="eab7">The DAO will build the Layer 3 rollup when it needs a new chain. In this way, Layer4-Layer5-LayerX will come.</p><figure id="dc04"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/0*Xxs5R5dCDR6RlGbu"><figcaption>Photo by <a href="https://unsplash.com/@wacalke?utm_source=medium&amp;utm_medium=referral">Mateusz Wacławek</a> on <a href="https://unsplash.com?utm_source=medium&amp;utm_medium=referral">Unsplash</a></figcaption></figure><h2 id="7574">L2 Fees Battles</h2><p id="605b">Which project charges the cheapest fees among all the Layer 2 projects?</p><ul><li>0.01 Fee on Loopring</li><li>0.03 fee on Zksync</li><li>0.04 fee on Arbitrum</li><li>0.08 fee on Optimism</li><li>0.09 fee on the Boba network</li><li>0.11 fee on StarkNet</li><li>0.45 fee on Ethereum</li></ul><p id="4662">As you can see the Loopring charges the lowest transaction fee of 0.01 only.</p><h2 id="bffe">Polygon</h2><p id="aaab">The transaction fee on Polygon depends on the amount and how many transactions you do. Estimated fees range from 0.0005 to 0.2.</p><p id="d37f">Polygon has taken the lead in the Layer 2 market. The arbitrum has not reached the level at which the polygon has been developed. Polygon has partnered with many big brands but arbitrum has not reached that level. Right now the market cap of Polygon is 9 billion and in the last bull run it achieved a market cap of 18 billion.</p><p id="9198">Currently, the <b>promising price of ARB </b>is running at 7.6 on the exchange. Another 1.27 billion supply will be unloaded when ARB lists on major exchanges. Now let’s calculate.</p><p id="a407" type="7">Market Price x Circulating Supply = Market Cap</p><p id="b5ae">7.6 Price x 1.27 Billion = <b>9.65 billion Market Cap</b></p><p id="6914">At the time of listing, ARB’s market cap will be 9.65 billion: but friends, this is impossible.</p><p id="5920">Purchasing Arbitrum IOU at the high price of 7.6 would be a bad idea. Guys, be patient; else, you’ll lose.</p><figure id="6507"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*SrnSX4j0z0eARtt0C6d5cQ.png"><figcaption>Image Created via Midjourney</figcaption></figure><h2 id="9dc3">1 ?</h2><p id="b6ae">If we get ARB below 1 after the supply of 1.27 billion is unloaded in the market, only then it would be wise to consider buying. The hype around the ARB at the time of listing on major exchanges would lead it to trade at greater levels, which would soon fall.</p><p id="0215">In Arbitrum, there hasn’t been much development. Therefore, I don’t believe it’s beneficial to spend more than 1 on it. ARB does not deserve this much value now.</p><p id="8f96">Do not try to accumulate ARB for more than 1. Wait for the right moment and when it drops below 1 then you may think about accumulating it.</p><p id="38be">Looking at the L3, and L4 features, it will be the best coin for the long term.</p><p id="8426" type="7">Clap — Share — Comment — Happily ☺</p><h2 id="3f70">Disclaimer</h2>

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<p id="eda0">This is not Financial Advice. This article is meant only for educational purposes. I am just sharing my thoughts and analysis based on my many years of experience.</p><h2 id="b725">Thank You for Reading…</h2><div id="e294" class="link-block"> <a href="https://medium.com/@jessicadoosan02/membership"> <div> <div> <h2>Join Medium with my referral link - Jessica Doosan</h2> <div><h3>Read every story from Jessica Doosan (and thousands of other writers on Medium). Your membership fee directly supports…</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/0*rnSdjgJHHjGQ1sZ4)"></div> </div> </div> </a> </div><h2 id="c7ac">↑ ↓ Brain Boosting …</h2><div id="13fc" class="link-block"> <a href="https://readmedium.com/how-to-find-and-follow-crypto-whale-predictors-to-earn-10x-to-100x-profit-9a8347e9b8f9"> <div> <div> <h2>How to Find and Follow Crypto Whale Predictors to Earn 10x to 100x Profit</h2> <div><h3>Dream Come True</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*RhT8mCvT0_nwWMxqedXYAA.png)"></div> </div> </div> </a> </div><div id="331f" class="link-block"> <a href="https://readmedium.com/will-bitcoin-go-to-1m-or-10k-as-said-by-coinbases-cto-civil-war-4fdd85decd70"> <div> <div> <h2>Will Bitcoin Go to $1M or $10k as said by Coinbase’s CTO?— Civil War</h2> <div><h3>Painkiller | World Order | BTC.D | Insurance Message</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*s7Q-7DhzqjtA7ULgQ-S2uw.png)"></div> </div> </div> </a> </div><div id="b565" class="link-block"> <a href="https://readmedium.com/what-will-happen-if-the-us-will-declare-ethereum-crypto-a-security-c9cd18751978"> <div> <div> <h2>What Will Happen If the US Will Declare Ethereum (Crypto) a Security?</h2> <div><h3>Bank | Stock | Imagine | Apple | Control | Thanos Snap</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*d-viRaVIXWg3mD72xkXPQA.png)"></div> </div> </div> </a> </div><div id="590d" class="link-block"> <a href="https://readmedium.com/5-liquidity-provider-coins-for-the-next-crypto-silent-trend-afb48a2c8d09"> <div> <div> <h2>5 Liquidity Provider Coins for the Next Crypto Silent Trend</h2> <div><h3>stETH | Validator | Node operator | DAO | Innovative | Pools</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/0*bnz4rGqpHBRLWaE4)"></div> </div> </div> </a> </div><div id="8dd0" class="link-block"> <a href="https://readmedium.com/this-coin-will-become-unaffordable-in-2025-9d75102efec1"> <div> <div> <h2>This Coin will Become Unaffordable in 2025</h2> <div><h3>Liquidity Depth | Social | Miracle | TVL | Brands</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*TyGRRoH6VlsXrJ99duYqpw.png)"></div> </div> </div> </a> </div><div id="13e8" class="link-block"> <a href="https://readmedium.com/i-predicted-when-bitcoin-would-break-the-previous-all-time-high-of-69000-ffca7e067122"> <div> <div> <h2>I Predicted When Bitcoin Would Break the Previous All Time High of $69000</h2> <div><h3>2012 to 2021 Data | BTC’s Production | Chart | Cycle | Day | Pattern | Timeing</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*OTpsBN6zOX6vmEsQELhooA.png)"></div> </div> </div> </a> </div></article></body>

Can Arbitrum (ARB) Beat Polygon (Matic)?- Endless Layers

IOU Means | Shocking Potential | LayerX| Fees Battle | Price Prediction

Image Created via Midjourney — Some Modified By Author

There is a lot of hype about Arbitrum in the market, and many people have collected money by selling their underwear to buy this token. Tomorrow its listing is going to happen in a major exchange and an airdrop is also going to happen, many people are shocked to see this. Due to shock, they have to be woken up every hour by slapping.

Seeing all this, I could not resist and thought that I should increase your craziness a little more.

  • At which price zone would it be right to buy and what can be expected from this token?
  • Can it be better than other layer scaling projects?
  • Why is this layer 2 project a little different from the rest of the layer 2 projects?

Arbitrum IOU — What is This

The Arbitrum token is currently trading at an expected price of $8.2 on 2 exchanges. But we must have noticed one thing, IOU is written behind the arbitrum. Do you know the meaning of this?

IOU Means

Arbitrum’s ‘I Owe You’ means exchange is promising us that whenever a real token will be listed in the market then the price of this IOU token will be combined with the real token and then the price will be averaged and the averaged price will become a final price of the real token. This is promising trading, due to which the price is getting hyped due to expectation. Now you must know that Arbitrum (IOU) token is for promising trading and is not real.

Trading at $2 on DigiFinex, $7.49 on XT.com, and $8.40 on Hotbit.

Now your mind starts running like a genius that by buying ARB on DigiFinex, transfer it to Hotbit and do arbitrage. Friends, this is possible only in dreams because these exchanges have closed the smart contract of ARB temporarily. This is the reason why the price difference is being seen.

Shocking

Arbitrum is built as a scaling solution for Ethereum, but it is not just for Layer 2. On top of this layer 2, layer 3, and layer 4, many such chains can be created.

Layers

The question must have also come to your mind that what is the need of so many layer chains? The more chain, the better it will perform. Due to this the rollup chain will be able to handle all the traffic that comes in it.

All transactions of Layer 2 of Arbitrum will be mandatorily settled down on Ethereum as it is Layer 1 of Ethereum. Similarly, all transactions of layer 3 will be mandatorily settled down on Arbitrum 1 as it will be layer 2 for that. In this way, the layers will grow, and the transaction will be settled down on the parent chain.

It depends on the base chain:

Layer 2 will do the transaction on Layer 1. Layer 3 will do the transaction on Layer 2. Layer 4 will do the transaction on Layer 3.

Recently its DAO has been launched, now it will be decided whether there is a need to create more Rollup chains or not. The more chain, the more there will be competition with the competitor in the market, whose advantage will be given to the Arbitrum.

TVL ( Total Value Lock )

I am very impressed after seeing its TVL, after seeing this my trust level has increased a lot. The latest TVL is $3.75B in this highly volatile and uncertain market. Its TVL has been shown less on many sites because it is showing only 1 project but on its official site, the TVL of all projects is combined.

  • ROLLUP MARKET SHARE- 55.6%
  • Users- 3.4M+
  • ETH GAS SAVED- $649M

ETH GAS SAVED means that if users had done transactions using Ethereum’s chain then they would have to pay more gas fees but so far, all users have saved a total $649 million by using Arbitrum’s chain. Arbitrum is providing the cheapest service in transactions.

Airdrop

Anybody who participated in their activities before the launch of their mainnet will be qualified for an airdrop based on the number of points they accumulated.

When you have used the Arbitrum chain, you may have got some points, whether it was from a 10–25–100 smart contract transaction, or in return for $10,000 or more of liquidity that you had provided. Now you will be given tokens in airdrop accordingly to all of the activities which you had performed on the Arbitrum chain.

You must have earned a minimum 3 points, otherwise, you will get nothing. On 3 points you will get 1250 tokens, according to that the more points you have the more tokens you will get.

Photo by Shubham's Web3 on Unsplash

Tokonomics

The total supply of ARB is 10 billion, of which there will be a token inflation of 2% every year. The inflation is very low, so there will be no damage to the health of the token.

Initially, a 5.5 billion supply will come into the market and the remaining supply will be locked for 1 year. Also, the supply of Team and Investor will not come into circulation in the market for 1 year. When the vesting period of their tokens starts, it will take a total of 3 years for the supply to come into circulation.

Unlocking and inflation of supply are all under tight control. There will be no problem even if you go on buying such coins on average in every deep.

In many tokens, after some time the supply is unloaded in the market so much that the growth of the token will become impossible. We have seen this in many gaming coins and new projects. It is risky to hold such coins long term but there is no such problem in Arbitrum.

  • 42.78% — DAO Treasury
  • 26.94% — Team
  • 17.53%- Investor
  • 11.62%- Airdrop
  • 1.13%- Building Apps Airdrop

DAO

The DAO will build the Layer 3 rollup when it needs a new chain. In this way, Layer4-Layer5-LayerX will come.

Photo by Mateusz Wacławek on Unsplash

L2 Fees Battles

Which project charges the cheapest fees among all the Layer 2 projects?

  • $0.01 Fee on Loopring
  • $0.03 fee on Zksync
  • $0.04 fee on Arbitrum
  • $0.08 fee on Optimism
  • $0.09 fee on the Boba network
  • $0.11 fee on StarkNet
  • $0.45 fee on Ethereum

As you can see the Loopring charges the lowest transaction fee of $0.01 only.

Polygon

The transaction fee on Polygon depends on the amount and how many transactions you do. Estimated fees range from $0.0005 to $0.2.

Polygon has taken the lead in the Layer 2 market. The arbitrum has not reached the level at which the polygon has been developed. Polygon has partnered with many big brands but arbitrum has not reached that level. Right now the market cap of Polygon is 9 billion and in the last bull run it achieved a market cap of 18 billion.

Currently, the promising price of ARB is running at $7.6 on the exchange. Another 1.27 billion supply will be unloaded when ARB lists on major exchanges. Now let’s calculate.

Market Price x Circulating Supply = Market Cap

7.6 Price x 1.27 Billion = 9.65 billion Market Cap

At the time of listing, ARB’s market cap will be $9.65 billion: but friends, this is impossible.

Purchasing Arbitrum IOU at the high price of $7.6 would be a bad idea. Guys, be patient; else, you’ll lose.

Image Created via Midjourney

$1 ?

If we get ARB below $1 after the supply of 1.27 billion is unloaded in the market, only then it would be wise to consider buying. The hype around the ARB at the time of listing on major exchanges would lead it to trade at greater levels, which would soon fall.

In Arbitrum, there hasn’t been much development. Therefore, I don’t believe it’s beneficial to spend more than $1 on it. ARB does not deserve this much value now.

Do not try to accumulate ARB for more than $1. Wait for the right moment and when it drops below $1 then you may think about accumulating it.

Looking at the L3, and L4 features, it will be the best coin for the long term.

Clap — Share — Comment — Happily ☺

Disclaimer

This is not Financial Advice. This article is meant only for educational purposes. I am just sharing my thoughts and analysis based on my many years of experience.

Thank You for Reading…

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