Arbitrum DAO Approves Major ARB Staking Proposal
The Arbitrum DAO has approved a proposal to boost the ARB token's utility and governance security, with 91% of over 25,000 voters backing the measure.
This proposal introduces a liquid staking system, allowing ARB holders to stake their tokens and receive a new liquid token, stARB, which will auto-compound rewards and integrate with DeFi apps.
The new system will use Tally’s liquid staking technology, tailored for Arbitrum’s governance and fee structures. ARB stakers and delegators will benefit from future sequencer fees, with rewards distributed based on a “Karma Score” that reflects on-chain and forum activity. This score will be adjustable by the DAO to ensure effective governance and reward distribution.
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The proposal aims to enhance ARB token utility, addressing its current underperformance and low on-chain activity. It also seeks to protect against governance attacks, especially with Arbitrum’s significant treasury holdings. The new staking mechanism will ensure that voting power remains with the DAO, even if stARB is used in other contracts.
Estimated implementation costs are $200,000 in ARB tokens, covering development, integration, and audits. This update is a crucial move to increase engagement and align interests with the protocol’s goals.
Previously, the Arbitrum Foundation received approval for a $215 million fund to support gaming projects on the platform. With over $2 billion in total value locked, this initiative aims to bolster Arbitrum’s growth and security.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
