TL;DR
- Arbitrum’s Expansion Proposal: The Arbitrum Foundation is considering extending its Orbit chains beyond Ethereum. The proposal is undergoing an initial “temperature check” vote on Snapshot, with results expected by August 1, 2024.
- Going Beyond Ethereum: If approved, new Orbit chains could launch on diverse networks like Bitcoin, Binance Smart Chain, and Cosmos. Rising interest from projects outside Ethereum has prompted this expansion.
- Financial Model and Community Support: Orbit chains share 10% of profits with the Arbitrum ecosystem. Preliminary results show over 99% community support for deploying Orbit chains across various blockchains.
The Arbitrum ecosystem, known for its innovative Layer 2 solutions on the Ethereum network, is now considering a significant expansion. The Arbitrum Foundation has proposed extending its Orbit chains to networks beyond Ethereum, potentially opening up new opportunities for developers and users alike.
The proposal, currently undergoing an initial “temperature check” vote on Snapshot, aims to broaden the scope of the existing Arbitrum expansion program. Until now, this program has been limited to blockchains that derive security from Ethereum.
These Layer 2 chains, known as Orbit chains, allow developers to create customizable blockchains using Arbitrum’s software stack. Features such as transaction throughput, gas token, and governance can be tailored to specific needs.
Arbitrum’s Journey Beyond Ethereum
If approved, the proposal would allow new Orbit chains to launch on diverse blockchain networks, including Bitcoin, Binance Smart Chain, and Cosmos. This decision is in response to rising interest from projects keen to develop Orbit chains outside of Ethereum.
The foundation hopes to encourage more Orbit deployments by removing existing limitations, ultimately benefiting the entire Arbitrum ecosystem.
Financial Model and Impact
Orbit chains follow a unique financial model: they share 10% of their profits with the Arbitrum ecosystem. This reciprocal arrangement ensures that as Orbit chains thrive, so does the project as a whole.
Additionally, the proposal could enhance the prevalence of the Ethereum Virtual Machine (EVM) and its upgraded version, Stylus (EVM+). Preliminary results from the community vote indicate overwhelming support for the expansion.
Over 99% of votes favor deploying Orbit chains across various blockchain networks. This strong backing reflects the community’s enthusiasm for broader adoption and interoperability.
Market Outlook
In related news, the crypto markets have experienced recent bullish momentum. Altcoins, including Arbitrum (ARB), have seen substantial rallies. Despite a 9.7% drop in the past week, the Arbitrum Network remains promising. Currently priced at $0.69, ARB’s impressive growth trajectory suggests potential for a late summer resurgence.
Notably, NFT sales on the Arbitrum platform have surged, contributing to increased buying volume. Analysts speculate that following the launch of Ethereum ETFs, ARB could rally as high as $1.50.
As the community eagerly awaits the final vote results, the future of Arbitrum’s Orbit chains hangs in the balance. If successful, this expansion could redefine the landscape of Layer 2 solutions and foster greater collaboration across blockchain networks.
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