The Arbitrum decentralized autonomous organization has given its approval to a governance proposal. This proposal will allow ARB token holders to stake their holdings in return for a yield paid out in tokens. The funding for this initiative will come from the Arbitrum treasury and will be distributed over a period of 12 months through a smart contract.
The final proposal, which was concluded today, originally introduced a tiered system for token allocation. This system offers options to allocate 1% (100 million tokens), 1.5% (150 million tokens), or 1.75% (175 million tokens) of the total 10 billion ARB supply as staking rewards.
The majority of DAO members, more than 66%, voted in favor of the lowest tier, which allocates 1% (100 million tokens) for staking. However, a minority, representing 33%, voted against the proposal. This highlights a disagreement within the community regarding the use of treasury funds for staking incentives.
The estimated annualized percentage yield ranges from 7.84% to 78.43%, dependent on the percentage of the ARB supply staked. Notably, unlike other mechanisms where tokens are staked for network security or revenue distribution, this arrangement will reward stakers with a token yield from the treasury.
One more community review
the DAO is poised to consider a subsequent proposal that will delve into the specifics of the staking implementation. This will encompass the selection of a technology service provider, the associated contracts, and the appointment of an auditor to ensure the process’s integrity.
Following the completion of contracts and audits, there will be a two-week review period. During this time, the community can assess the implementations before they become active.
