Arbitrum DAO Approves Staking Proposals for ARB Utility Enhancement
The DAO has approved staking proposals to increase ARB utility and enhance governance security. The proposal received overwhelming support from more than 25,000 participants in an on-chain vote, with 91% in favor.
Upon approval, ARB token holders can now stake and delegate their tokens in exchange for liquidity in staking ARB tokens (stARB). These staked tokens offer features such as automatic compounding of future rewards, restaking options, and compatibility with decentralized finance (DeFi) applications.
Implementation of stARB Using Tally’s Liquid Staking Token System
stARB is implemented using Tally’s liquid staking token system, custom-made to fit Arbitrum’s governance structure and charging mechanism. ARB token holders actively delegating to “active representatives” will be rewarded with future remaining orderer fees, enhancing participation incentives.
Karma scores, calculated based on snapshot voting, on-chain voting, and forum activity, are used to define active representatives. The DAO has the authority to adjust the Karma Score formula through consensus and set minimum scores for stake rewards.
Preventing Governance Attacks and Promoting Network Growth
The approval of staking proposals aims to prevent potential governance attacks as the attractiveness of the Arbitrum vault grows. With 16 million ETH accumulated in residual fees from Arbitrum One and Nova, the network’s appeal is on the rise.
Arbitrum, recently ranked as the second most used Ethereum L2 transaction network, is poised for growth with staking approvals like these. Enhancing governance security and utility can further solidify its position in the market.
Furthermore, the DAO’s investment of $222 million in gaming ecosystem development showcases a commitment to expanding the network’s capabilities and potential for innovation.
