Arbitrum DAO, has given the green light to a proposal that will change the dynamic for ARB token holders. The proposal in question will allow ARB holders to stake their tokens and, in return, obtain an attractive yield.
The innovative proposal is based on the idea of activating ARB token staking, a move that has generated considerable interest and debate in the DAO community.
This proposal stands out because it funds the performance through Arbitrum’s treasury and distributes it via a smart contract over a 12-month period.
Initially, they introduced a tiered system that permitted holders to select between allocating 1%, 1.5%, or even 1.75% of the total 10 billion ARB supply as staking rewards.
This means that holders have flexibility to choose their level of staking commitment, and the estimated annual return varies accordingly, with rates ranging between 7.84% and an impressive 78.43%.
The Arbitrum proposal has not been free of disagreements in the community
More than 66% of DAO members voted in favor of the 1% allocation towards staking, while 33% voted against.
The main source of disagreement lies in the use of Arbitrum treasury funds for staking incentives, which has sparked debates about the appropriateness of this measure.
Despite disagreements, the DAO community is willing to move forward. They are currently considering a second proposal that will concentrate on the specific implementation of staking.
This will include the selection of a technology service provider, the selection of an auditor to ensure the integrity of the process, and a two-week review period in which the community can evaluate the implementations before they go live.
The approval of ARB’s staking proposal on Arbitrum marks an exciting step forward in the development of this ecosystem.
Although facing challenges and differing opinions, the community remains resolute in advancing and investigating fresh prospects for ARB holders.
We are actively working to enhance this staking mechanism by collecting data and collaborating with the “Arbitrum Coalition.” This collaboration promises to yield valuable insights in the near future.
This step not only benefits ARB, but also drives interest in the Arbitrum ecosystem as a whole.