The Arbitrum Foundation has recently announced the airdrop of its governance token, which aims to optimally distribute governance of the Arbitrum protocol. The token distribution model focuses on analyzing on-chain data to identify users who have demonstrated desirable behaviors, such as transacting on Arbitrum, developing Dapps, or contributing to the economic and technological governance of the protocol. The airdrop will be distributed to Arbitrum network wallets exhibiting moderate to highly active behaviors. To determine the allocation of tokens, a formula was created to consider a project's user share, transaction share, volume share, and fee share. A total of 60 million $Arb tokens will be allocated to big projects, 20 million $Arb tokens to small projects, and 33 million $Arb tokens to native or early projects. The airdrop is essential in fostering community governance and involvement in developing the Arbitrum protocol.

It is also viewed as rewarding early network supporters and encouraging future growth. The Arbitrum Foundation aims to create a fair and equitable distribution of governance tokens that aligns with the community's values and goals. The airdrop is expected to be a significant event in the growth and development of the Arbitrum ecosystem.

Big projects: In allocating $Arb tokens to big projects, I used several metrics to determine the allocation for each project. These metrics include user share, transaction share, volume share, and fee share. The user share is calculated as the percentage of project users over total users, while the transaction share is the percentage of project transactions over total transactions. The volume share is the percentage of project volume over the total volume, and the fee share is the percentage of project fees over total fees.

To determine the allocation for each project, I multiplied the user share, transaction share, and fee share by 10 million, which was the total allocation for big projects. For volume share, I multiplied it by 30 million, which was the allocation for volume-based projects.

Small projects: For allocating $Arb tokens to small projects, I used a similar method as for big projects. First, I calculated each small project's user, transaction, volume, and fee share. The user share is the percentage of total users of each small project. The transaction share is the percentage of total transactions of each small project. The volume share is the percentage of the total USD volume of each project's small projects.

To determine the allocation for each project, I multiplied the user share, transaction share, and fee share by 2 million, the total allocation for big projects. For volume share, I multiplied it by 4 million, which was the allocation for volume-based projects.

Native projects: To determine the allocation for each project, I multiplied the user share, transaction share, and fee share by 5 million, the total allocation for big projects. For volume share, I multiplied it by 18 million, which was the allocation for volume-based projects.