The Ethereum Layer 2 network Arbitrum’s ecosystem governance organization, Arbitrum DAO, is currently voting on whether to expand its Orbit chain beyond the Ethereum blockchain.
The “Orbit chain” refers to customizable Layer 2 networks developed using Arbitrum’s software stack. Developers can tailor these networks to specific needs, choosing elements such as transaction processing capacity, Gas tokens, governance, and configuring them to settle transactions directly on Ethereum.
A proposal presented by the Arbitrum Foundation is currently undergoing an initial “temperature check” vote on Snapshot, scheduled to conclude on August 1, 2024. The foundation recommends expanding its originally Ethereum-dependent “Arbitrum Expansion Plan”. If approved, the latest proposal would allow new Orbit chains to launch on various blockchain networks, including Bitcoin, Binance Smart Chain, and Cosmos.
The proposal notes a strong interest from several projects in developing Orbit chains outside of Ethereum, prompting the foundation to reconsider its existing constraints. The proposed changes could lead to increased demand for Orbit chain deployments, enhancing the effectiveness of ArbitrumDAO and its ecosystem. Orbit chains share 10% of their profits with the Arbitrum ecosystem, benefiting both parties financially.
Preliminary voting results indicate strong community support for expansion, with over 99% of votes in favor of deploying Orbit chains on various blockchain networks.
The foundation proposes expanding its Arbitrum Expansion Plan, which previously only provided security assurances from Ethereum to blockchain networks, typically second-layer blockchains.
Existing protocols allow forking the Arbitrum codebase and launching EVM-compatible Orbit chains. These customizable blockchains are developed using Arbitrum’s software stack, allowing developers to tailor chains according to specific needs, selecting elements such as transaction throughput, gas tokens, and governance. They can be configured to settle directly on Ethereum.
The latest proposal highlights interest from projects looking to develop Orbit chains outside of Ethereum, prompting the foundation to reconsider its current restrictions. The proposed changes could lead to more Orbit deployments, enhancing revenue for ArbitrumDAO and its ecosystem.
Orbit chains sharing 10% of profits with the Arbitrum ecosystem promotes a mutually beneficial financial model, benefiting the project.
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