ARB is the governance token of ArbitrumDAO. It gives holders a way to influence decisions about the protocols and treasury the DAO governs, either by voting through an eligible address or by delegating voting power.
The token is different from the Arbitrum network and from the ETH used for ordinary transaction fees on Arbitrum One. Understanding those roles helps you avoid buying, transferring or exchanging the wrong asset for your actual task.
The name Arbitrum can describe the technology and its networks, while ARB identifies a particular token. A wallet can therefore contain both an ARB balance and an ETH balance on the same network.
ARB follows the ERC-20 token standard. Its main governance role is to represent voting power in decisions such as protocol changes and the use of DAO funds.
An ARB transfer moves tokens between addresses. It does not, by itself, submit a vote or appoint someone to represent the new holder.
Arbitrum One is an Ethereum Layer 2 network where wallets can hold and transfer many assets. ARB is one of those assets; the network also carries ETH, stablecoins and other tokens.
“Send using Arbitrum” is therefore incomplete payment information. You still need the exact asset, the receiving address and confirmation that the recipient accepts that asset on that network.
A standard ARB transaction on Arbitrum One uses ETH for its network fee. Holding enough ARB to cover the intended transfer does not automatically mean the wallet can pay that fee.
Some wallet products provide sponsored transactions or alternative fee-payment arrangements. Those are features of the particular wallet or application, so check the payment preview rather than assuming every ARB transfer works that way.
Governance gives a holder a role in collective decisions rather than a guaranteed financial return. The action available to an address also depends on delegation and the eligibility rules of the proposal being considered.
A proposal describes a change and the process for deciding whether it should proceed. Read what is being authorized, which funds or permissions are involved and what happens if the proposal passes.
Token-weighted voting is not the same as one-person-one-vote. An address representing more eligible voting power has more weight, and the relevant proposal determines when that power is measured.
Delegation lets another address use your voting power while you retain the tokens. It can be useful when you want representation but cannot review every proposal yourself.
The practical steps, including self-delegation and checking eligibility, are covered in delegating ARB and voting in ArbitrumDAO. Choose a representative by their decisions and activity, rather than a promise of rewards for delegating.
A busy network and a valuable governance token are related ideas, but they are not the same measurement. More transactions do not automatically create a matching obligation for every user to acquire ARB.
When considering the token, separate what creates a reason to hold it from what changes the number of tokens available. Treasury decisions, vesting releases, market liquidity and demand for voting influence can affect the picture in different ways.
For the supply side, read ARB allocation, inflation and unlocks. An initial allocation is a historical distribution, while circulating supply describes a changing quantity; neither should be confused with a forecast.
Start with the result you want. Keeping governance exposure, moving tokens to another wallet and converting them into another asset are different actions with different checks.
Before a transfer, confirm that the recipient accepts ARB in the network you will use. Before an exchange, confirm which asset and network you will receive and compare the amount after the applicable costs.
For a stablecoin payout, you can exchange ARB for USDT on your chosen receiving network. The order keeps the sending asset and the payout choice explicit, so choosing a different destination does not rely on changing a network label in your wallet.