- More than 25,000 participants gave the proposal an unanimous 91% approval.
- At its heart, the proposal is about making the Arbitrum (ARB) token more useful.
With the goal of increasing the ARB token’s usefulness and fortifying governance security, the Arbitrum DAO has green-lit a temperature check proposal. After more than 25,000 participants gave the proposal their unanimous 91% approval, on Aug. 15 the onchain voting came to a close.
At its heart, the proposal is about making the Arbitrum (ARB) token more useful by making it possible to stake ARB. But for the time being, it does not go so far as to pay out fees to token holders. On the contrary, it uses the Tally protocol to introduce liquidity-staking ARB token (stARB).
In order to stake and delegate their ARB tokens, users may use the staking mechanism, which allows them to trade their tokens for stARB, which stands for their stake. The stARB token is compatible with a number of decentralized finance (DeFi) apps, has restaking options, and allows automated compounding of future payouts.
Boosting Engagement
The goal of this strategic undertaking is to get more people involved in the Arbitrum ecosystem. Token holders may increase their eventual eligibility to collect excess sequencer fees by actively delegating and staking ARB tokens.
The present low levels of involvement in the DAO are addressed by this technique, which is meant to encourage voting. The proposal brings attention to a critical issue: the ARB token’s poor performance in terms of value accumulation. There has been a decrease in voter engagement since the DAO’s creation, and fewer than 1% of ARB tokens are now active inside the onchain ecosystem, according to the proposal.
The proposal’s emphasis on avoiding any assaults on governance is another important feature. The Arbitrum treasury is becoming a more tempting target for those with ill intentions as it continues to expand.
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