By increasing to 7.9 cents Thursday, the token’s fully diluted valuation or market capitalization of all tokens once released into circulation sits at $79.8 million at presstime, per Dex Screener, but at Paradigm’s purchase price of ARENA, the token has a fully diluted valuation of $40 million. The token’s 24-hour volume currently stands at roughly $61,000, per GeckoTerminal.
Earlier Thursday, the on-chain voting period for Code4rena DAO opened. Since then, a total of nine addresses voted, providing unanimous support in favor of authorizing the DAO to sell its tokens to Paradigm. Data from blockchain analytics firm Nansen shows 142 unique addresses holding ARENA, a 10% increase since Monday.
If passed, the $6 million sale to Paradigm will be authorized and the funds will be used as working capital for the decentralized autonomous organization (DAO) to grow Code4rena, according to the on-chain vote. The vote ends one week from now, March 23.
The author of the governance proposal said, “We’re excited to have [Paradigm’s] expertise in helping Code4rena achieve our shared mission of making the Web3 ecosystem more secure, whilst rewarding all contributors.” In 2022, $3.8 billion was stolen from decentralized finance (DeFi) protocols in hacks, per Chainalysis.
Code4rena is an audit platform that organizes security contests for smart contracts and offers “guaranteed payouts” for audit contests, as stated in its technical docs. The security contest organizer for smart contracts had 46 users earn more than $40,000 for their efforts in uncovering vulnerabilities last year, data from Code4rena’s leaderboard shows.
The governance vote highlights Paradigm’s hands-on approach in blockchain safety: In addition to its involvement with Code4rena, Paradigm also organizes its own Web3 focused security competition called Paradigm CTF.
UPDATE (March 20, 02:15 p.m. UTC): Clarified all references to the name of Code4rena DAO
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.