Big News for ARB Holders: Arbitrum Launches Treasury-Supported Staking Rewards
Arbitrum has embraced a transformative governance proposal that empowers holders of the ARB token to engage in staking their holdings in exchange for a yield paid in tokens.
The initiative, fueled by the Arbitrum treasury and facilitated through a specialized smart contract, marks a significant step in enhancing community participation.
With the recent finalization of the proposal, a nuanced tiered model was introduced for the allocation of tokens. The options included allotting 1% (100 million tokens), 1.5% (150 million tokens), or 1.75% (175 million tokens) of the overall 10 billion ARB supply as rewards for staking.
Following a vote, a notable majority—comprising over 66% of the DAO members—endorsed the allocation of the minimum tier of 1% (100 million tokens) for staking. However, a dissenting faction of 33% opposed the proposal, exposing a divergence of perspectives within the community regarding the utilization of treasury funds for staking incentives.
The projected annualized yield is estimated to fluctuate between 7.84% and 78.43%, contingent on the percentage of the ARB supply staked. A distinctive feature of this approach is its provision of a token yield from the treasury to stakers, differing from conventional methods where tokens are staked primarily for network security or revenue sharing.
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Looking ahead, the DAO is gearing up for further deliberation on the specifics of the staking implementation. This will encompass critical decisions about the selection of a technology service provider, defining associated contracts, and the appointment of an auditor to oversee and ensure the integrity of the entire process.
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.
