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