Arbitrum DAO Approves ARB Token Staking to Enhance Governance and Security

The Arbitrum DAO has overwhelmingly endorsed the introduction of ARB token staking, with 91.5% of voters signaling approval.

Arbitrum DAO has approved the introduction of ARB token staking in a move designed to enhance governance and security within the Arbitrum network.

As per a proposal initiated by Frisson, Tally’s head of marketing, and a subsequent temperature check, the community has overwhelmingly endorsed the initiative, with 91.5% of voters signaling approval. This measure aims to increase active participation in governance by offering incentives to ARB holders.

Currently, only 10% of ARB’s circulating supply is actively involved in governance activities, and voter turnout has declined since the Arbitrum DAO’s establishment. The new staking model is intended to encourage ARB holders to delegate their tokens to active governance participants, who will then be able to capture value from the governance process.

Moreover, a liquid staked ARB token (stARB) will be introduced, enabling the automatic compounding of potential future rewards and facilitating integration with decentralized finance (DeFi) applications.

A key aspect of the staking proposal is its role in protecting against governance attacks. The Arbitrum DAO treasury has amassed over 16 million ETH in surplus fees, making it an increasingly attractive target for malicious actors. As the treasury grows in value, Frisson noted that the implementation of staking becomes crucial to safeguard against such attacks.

Tally has been granted a budget of $200,000 in ARB tokens to develop the staking solution, and smart contract audits are expected to be completed by September. The full implementation of the staking mechanism is scheduled for October.

Despite this positive development, ARB’s price has seen a decline of nearly 3% and is now trading at $0.35, according to data from crypto.news.

In other related news, Franklin Templeton has announced plans to launch a money market fund on Arbitrum. The $1.66 trillion asset manager will introduce the Franklin OnChain U.S. Government Money Fund (FOBXX), which will also be available on Stellar and Polygon networks.

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