Coinfeeds Daily → Arbitrum DAO Approves Token Staking Proposal, ARB Price Surges

Arbitrum DAO Approves Token Staking Proposal, ARB Price Surges

Published: Nov 06, 2023 | Last Updated: Mar 17, 2024
Moyi Dang

Arbitrum's Decentralized Autonomous Organization approves staking proposal, leading to a surge in ARB token price and promoting community engagement

Arbitrum DAO Approves Token Staking Proposal

The Decentralized Autonomous Organization (DAO) of Arbitrum has given the green light to a proposal to activate token staking. This decision allows ARB token holders to stake their tokens in return for a yield. The yield will be funded by the Arbitrum treasury and distributed over a 12-month period through a smart contract.

The proposal received a majority approval, with 66% of DAO members voting in favor of allocating 1% of the total ARB supply as staking rewards. The estimated annualized percentage yield ranges from 7.84% to 78.43%, depending on the amount of ARB supply staked.

Impact on Arbitrum Price

Following the approval of the staking proposal, the price of Arbitrum (ARB) has experienced a surge. The staking proposal introduces different tiers for staking rewards and promotes community engagement. This new opportunity allows ARB token holders to earn additional tokens directly from the treasury. The price of the ARB token increased by 2.5% following the news.

Next Steps for Arbitrum DAO

With the staking proposal approved, the DAO will now consider the specifics of the staking implementation. This includes decisions on technology service providers and auditing. The implementation schedule and development costs are yet to be determined.

This move by the Arbitrum DAO is a significant step towards encouraging community participation and engagement. It not only provides an opportunity for ARB token holders to earn additional tokens but also strengthens the overall ecosystem of Arbitrum.

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