<p>After Arbitrum started distributing governance tokens to eligible decentralized autonomous organizations, some large token holders — commonly called whales — have been adding to their stacks.</p> <p>Earlier today, one address <a href="https://debank.com/profile/0x09d4083ffd20d21acb9118465ad7c52ac8b548f7/history">holding</a> 1.95 million Arbitrum governance tokens — worth roughly $2.7 million — received nearly $200,000 in ARB from Binance. At the time, the price of one token was $1.38, <a href="https://twitter.com/lookonchain/status/1651171321357934592">according</a> to on-chain analysis Twitter account Lookonchain.</p> <p>Not long before, a second address <a href="https://debank.com/profile/0x4322fd98f95a219d2aae2bba6664e3574b4c3708/history">holding</a> 1.78 million governance tokens — worth $2.5 million — spent 80 ETH on buying roughly $146,000 worth of ARB at $1.34 per token.</p> <p>The latter address has made more than $7.3 million on successful trades, Lookonchain also noted.</p> <div id="attachment_228373"class="wp-caption aligncenter" style="max-width: 2678px;"><img class="has-caption size-full wp-image-228373" src="https://www.tbstat.com/wp/uploads/2023/04/ARBUSDT_2023-04-26_13-58-53.png" alt="tradingview chart of arbitrum's governance token price today" width="2668" height="764" /><p class="wp-caption-text"><span style="font-size: 8pt;">The price of Arbitrum's governance token has increased by more than 4% today. Source: TradingView</span></p></div> <h2>Arbitrum distributing governance tokens to DAOs</h2> <p>Arbitrum, the leading Layer 2 network on Ethereum, began <a href="https://www.theblock.co/post/228087/arbitrum-token-distribution-ecosystem-dao">distributing</a> governance tokens to DAOs earlier this week.</p> <p>Its core team previously designated 1.13% of the overall 10 billion governance token supply — equivalent to 113 million ARB with a current value exceeding $145 million — to be distributed among qualifying projects in the Arbitrum ecosystem.</p> <p>The distribution of governance tokens to DAOs is intended to help bootstrap activity on the Arbitrum network. The tokens may be allocated to projects' treasuries or used for other objectives, as determined by the respective DAOs.</p> <p>Projects receiving governance tokens include Uniswap, Sushi, Aave, GMX, Hop Protocol, Radiant Capital, Balancer, Synapse, MakerDAO, Curve, Layer Zero and 1inch.</p> <h2>An imperfect start</h2> <p>Arbitrum's governance got off to a rocky start after the project's foundation preemptively spent 50 million tokens without waiting for Arbitrum Improvement Proposal 1 to pass. After the news broke, AIP-1 was <a href="https://www.theblock.co/post/224459/arbitrum-proposal-backlash-response">rejected</a>.</p> <p>However, a follow-up proposal, AIP 1.1, passed as the community broadly consented to the foundation's receiving the 750 million ARB tokens, as planned.</p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>