Offchain Labs announces phased ARB token purchase plan

Offchain Labs, the team behind Ethereum (CRYPTO:ETH) Layer 2 solution Arbitrum (CRYPTO:ARB), has unveiled a strategic purchase plan to gradually acquire ARB, the native token of the Arbitrum ecosystem.

The initiative aims to bolster the firm's treasury and support ecosystem growth through open market transactions and other methods based on pre-established parameters.

The phased approach avoids a one-time acquisition, allowing Offchain Labs to accumulate ARB tokens over time while minimising market impact.

The move aligns with broader efforts to advance the Arbitrum ecosystem, including technical upgrades such as Arbitrum BoLD, Orbit, and Stylus, as well as initiatives led by the Arbitrum DAO.

Arbitrum is a leading optimistic rollup platform designed to enhance Ethereum’s scalability by processing transactions off-chain and submitting batched proofs to the Ethereum mainnet.

This approach reduces costs and increases transaction speeds.

The platform currently boasts a total value locked (TVL) of over $2.3 billion, underscoring its significance in the Layer 2 landscape.

Despite its technological advancements, ARB has faced significant price challenges.

The token is currently trading at $0.32, marking an 86% decline from its January 2024 peak of $2.39.

Scheduled unlocks have increased ARB’s circulating supply from 2.9 billion mid-last year to 4.4 billion today, exerting downward pressure on its price.

Offchain Labs' decision to increase its ARB holdings reflects confidence in the ecosystem's long-term potential while addressing supply-driven volatility.

By stabilising ARB’s market presence, the firm aims to foster investor confidence and incentivise community engagement.

This announcement comes ahead of a significant token unlock scheduled for March 16, which will release $2 billion worth of ARB tokens to team members, advisors, and investors.

The unlock will nearly double ARB’s circulating supply and initiate regular monthly releases for the next three years.

At the time of reporting, the Arbitrum (ARB) price was $0.3306.