TL; DR
- Expansion proposal from Arbitrum: The Arbitrum Foundation is considering expanding its Orbit chains beyond Ethereum. The proposal is currently undergoing an initial “temperature check” vote on Snapshot, with results expected on August 1, 2024.
- Going beyond Ethereum: If approved, new Orbit chains can be launched on various networks such as Bitcoin, Binance Smart Chain and Cosmos. Increasing interest from projects outside of Ethereum has led to this expansion.
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Financial model and community support: Orbit chains share 10% of profits with the Arbitrum ecosystem. Preliminary results show more than 99% community support for deploying Orbit chains across different blockchains.
The Arbitration ecosystem known for its innovative Layer 2 solutions on the Ethereum network, is now is considering a significant expansion. The Arbitrum Foundation has proposed expanding its Orbit chains to networks beyond Ethereum, potentially opening up new opportunities for developers and users directly.
The proposal, currently undergoing an initial “temperature check” vote Snapshot, aims to broaden the scope of the existing Arbitrum expansion program. Until now, this program was limited to blockchains that derive security from Ethereum.
These Layer 2 chains, known as Track chains, allow developers to create customizable blockchains using the Arbitrum software stack. Features such as transaction throughput, gas token, and management can be tailored to specific needs.
Arbitrum’s journey beyond Ethereum
If approved, the proposal would allow new Orbit chains to be launched on various blockchain networks, including Bitcoin, Binance Smart Chain and Cosmos. This decision is in response to increasing interest from projects that want to develop Orbit chains outside the region by Ethereum.
The foundation hopes to encourage more Orbit deployments by removing existing limitations, which will ultimately benefit the entire Arbitrum ecosystem.
Financial model and impact
Track chains follow a unique financial model: they share 10% of their profits with the Arbitrum ecosystem. This mutual arrangement ensures that as Orbit chains flourish, so does the project as a whole.
Furthermore, the proposal could increase the spread of the Ethereum Virtual Machine (EVM) and its upgraded version, Stylus (EVM+). Preliminary community voting results indicate overwhelming support for the expansion.
More than 99% of the votes are in favour to stake Job chains across different blockchain networks. This strong support reflects the community’s enthusiasm for broader adoption and interoperability.
Market Outlook
In related news: the crypto markets have recently experienced bullish momentum. Altcoins, including Arbitrum (ARB) has seen significant rallies. Despite a decline of 9.7% 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 revival.
Remarkable, NFT sales on the Arbitrum platform have skyrocketed, which contributes to increased purchasing volume. Analysts speculate that ARB could rise to $1.50 after the launch of Ethereum ETFs.
While the community eagerly awaits the final voting 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 promote greater collaboration among blockchain networks.