Arbitrum Set to Extend Its Presence in Japan with a New Partnership
The Arbitrum Foundation, a key supporter of the Ethereum Layer-2 network Arbitrum, has joined forces with protocol studio Fracton Ventures to unveil a strategic initiative known as "Arbitrum Japan." This partnership is poised to bolster its foothold in Japan by focusing on ecosystem development and community education programs. Although the precise funding details for this endeavor remain undisclosed, both the Foundation and Fracton Ventures share a common vision of unlocking the untapped potential within the Japanese region.
Optimism Surrounds the Arbitrum Japan Partnership
Nina Rong, the Head of Ecosystem Development at the Foundation, expresses unwavering optimism about the partnership's potential to engage a new demographic of developers, innovators, and blockchain enthusiasts who have yet to fully explore the benefits of blockchain technology. Siddharth Pillai, Head of Partnerships at Fracton Ventures, echoes this sentiment, underscoring the ripe opportunity for blockchain innovation in Japan. He firmly believes that, through Arbitrum Japan, the Japanese blockchain sector will gain exposure to cutting-edge technology and developer tools, enabling them to harness the full potential of blockchain.
Leveraging Fracton Ventures' Expertise
Fracton Ventures, based in Japan, will leverage its extensive network of experts, investors, and developers in the region, backed by the support of the Foundation. Together, they plan to adopt a multifaceted approach with a focus on both business development and ecosystem building, as well as education and community support. The partnership's primary objectives include promoting the growth of the Arbitrum ecosystem in the Japanese market. This will involve facilitating collaboration between web2 and web3 companies, fostering an environment where both can thrive.
Education and Community Engagement
Additionally, Arbitrum Japan aims to expand its technical educational content, which will include Ask Me Anything (AMA) sessions and hackathons. University ambassadors and community managers will play a vital role in driving consumer adoption of the firm within Japan. Japan has positioned itself as one of the more crypto-friendly jurisdictions, with Prime Minister Fumio Kishida recognizing the transformative potential of web3 technologies at a conference in July. In an effort to boost its crypto industry, Japan's National Tax Agency also exempted crypto issuers from paying capital gains taxes on unrealized gains.
Japan's Crypto Tax System and Adoption Rate
There have been calls within the industry for further revisions to Japan's crypto tax system. The Japan Blockchain Association has urged the government to cancel taxes on profits from crypto transactions, arguing that such taxes are hindering the growth of web3 businesses in the country. Nina Rong, from the Foundation, emphasized that they have received significant interest from Japanese enterprises and individual developers regarding Arbitrum technology. Establishing local resources on the ground will allow them to better serve these clients.
Expansion Beyond Japan
Looking beyond Japan, the Arbitrum Foundation has plans to expand the firm's presence in South Korea and other Southeast Asian regions. Arbitrum made significant waves in the cryptocurrency space earlier this year with its token airdrop in March. The airdrop included 1.16 billion tokens as a reward for early users of the Layer-2 network, granting them governance powers over the DAO that governs the Arbitrum One and Nova networks.
Governance Controversy and Achievements
However, the project faced controversy with its initial governance proposal, which sought to send 750 million ARB tokens, valued at around $1 billion at the time, to the Arbitrum Foundation for investment in various initiatives. This move was met with backlash from the community due to concerns about decentralization. In response to the community's concerns, the proposal was divided and put to a vote once again. Subsequently, the Arbitrum Foundation announced that 69 million ($57 million) in unclaimed airdropped ARB tokens were transferred to the Arbitrum DAO treasury.
Dominance in the Layer 2 Scaling Market
Arbitrum has established itself as a prominent player in the Ethereum Layer 2 scaling market, boasting the highest total value locked (TVL) at $5.9 billion across Layer 2 chains, representing 55% of the market. Optimism follows with $2.7 billion, and Coinbase's Base stands at $552 million in TVL. However, Base leads the optimistic rollup scaling solutions in terms of daily new unique addresses and average daily transaction counts, according to data from The Block. As the partnership between the Arbitrum Foundation and Fracton Ventures unfolds, it could potentially drive further growth and adoption of Arbitrum's Layer 2 technology in Japan and beyond.
Conclusion
The partnership between the Arbitrum Foundation and Fracton Ventures holds promise for both the Japanese blockchain ecosystem and the broader cryptocurrency community. With its focus on education, community engagement, and technical development, Arbitrum Japan aims to unlock the full potential of blockchain technology in Japan, a country known for its crypto-friendly stance. As this initiative progresses, it may set a precedent for collaborative efforts in the blockchain space, fostering innovation and growth.
