Analysis of Lookonchain Data: Understanding the 2.694 Billion ARB Transfer

04/03/2023 00:35 • Metaverse Matters • 135 views

On April 3rd, according to Lookonchain data, 2.694 billion ARBs were transferred to approximately 140 EOA addresses through addresses beginning with 0x1e70 two days ago. This number of ARBs should be allocated to the Offchain Labs team, future teams, and consultants (26.94%), but this portion of Tokens should have a 4-year lockup period.

Nearly 2.7 billion ARBs were transferred to approximately 140 EOA addresses two days ago, which should have been subject to a 4-year lockup period

Introduction

On April 3rd, Lookonchain data revealed that approximately 140 EOA addresses received 2.694 billion ARBs. This transfer raises questions about the allocation of ARBs and the knowledge available to the public. This article aims to analyze the Lookonchain data and provide insights into the transfer.

The Transfer

According to Lookonchain data, the transfer involved approximately 140 EOA addresses that began with 0x1e70. However, questions arise regarding the purpose of this transfer and who the recipients are. It is important to note that the Offchain Labs team, future teams, and consultants are entitled to 26.94% of the tokens. Nevertheless, this portion of tokens should have a 4-year lockup period.

Understanding the Allocation of ARBs

A key question that the Lookonchain data raises is whether the allocation of ARBs was done according to the prescribed guidelines. To answer this question, it is important to understand how ARBs are allocated. According to the project’s whitepaper, the allocation consists of 50% to the public sale, 25% to the team, 20% to the founders, and 5% to strategic investors.
The whitepaper further elucidates that the team allocation is for “future team incentives and consultants.” Therefore, it is unclear whether the 2.694 billion ARBs were allocated to future teams and consultants or whether the team allocation was exceeded. It is critical for investors to know to whom their investment is being allocated to gain trust in the project.

The 4-Year Lockup Period

Another crucial question that the transfer raises is whether the 4-year lockup period was adhered to. The 4-year lockup period is an essential part of the Offchain Labs project, with the founders only allowed to use 10% of their allocated tokens per year. The 4-year lockup period is an anti-dumping measure that ensures that the project has sufficient liquidity to operate and stabilizes the token price.
Thus, if the 2.694 billion ARBs were meant for future teams and consultants, it hints that they are bound by the same lockup period. Moreover, the lockup period reassures investors that the project’s price will not be severely affected by token dumping.

Conclusion

In conclusion, the Lookonchain data revealing the transfer of 2.694 billion ARBs to approximately 140 EOA addresses has raised significant questions about the allocation of tokens and adherence to the 4-year lockup period. It is essential for Offchain Labs to address these questions transparently to reassure investors and maintain trust in the project.

FAQs

1. What is the purpose of the 4-year lockup period?
The 4-year lockup period ensures that the project has sufficient liquidity to operate and stabilize the token price.
2. Who is entitled to 26.94% of the ARBs allocated?
The Offchain Labs team, future teams, and consultants are entitled to 26.94% of the tokens.
3. Why is transparency essential in the allocation of ARBs?
Transparency is essential in the allocation of ARBs to build trust and maintain investor confidence in the project.

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