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 Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
