Arbitrum Community Approves Activation of ARB Token Staking
- The initial vote by the Arbitrum community approves ARB token staking.
- An annual yield ranging from 7.84% to 78.43% is proposed, funded by Arbitrum’s treasury.
- A final on-chain vote must take place to definitively validate the proposal.
Initial Approval for ARB Token Staking
The Arbitrum community has made a favorable decision in the initial governance vote on a proposal to enable ARB token staking. This initiative aims to generate yield for token holders, with funds distributed over a 12-month period through a smart contract.
The first phase of this vote introduced a tiered system for token allocation, offering various percentage options of the total 10 billion ARB tokens to be allocated as staking rewards.
Over 66% of DAO members chose the lowest option, with an allocation of 1% (100 million tokens) for staking. However, 33% voted against, revealing divergences within the community regarding the use of treasury funds for staking incentives.
Criticisms and Perspectives on the New Staking Model
This staking model, which provides token yield from the treasury, differs from other staking mechanisms and has faced some criticism. Indeed, the staking system would have no concrete usefulness for the blockchain and would solely aim to alleviate selling pressure.
Further community review is planned for a formal AIP proposal that will detail the specific implementation of staking. This will include the choice of technology provider, creation of associated contracts, and selection of an auditor. After contract finalization and audits, a two-week review period is scheduled for the community to assess the implementations before their deployment.