Arbitrum, a blockchain project, has received approval from its governance community to launch a staking rewards program. The initiative will allocate 1% of ARB tokens from the treasury for staking yields. This move aims to encourage token holders to stake their holdings and will involve the distribution of staking rewards over 12 months through a dedicated smart contract. Stakers can expect an annual yield ranging from 7.84% to 78.43%, depending on the total ARB tokens staked.
While the majority of the community supported the proposal, some members expressed concerns about using treasury tokens for yield generation instead of network security or revenue sharing. The community is also preparing to make decisions regarding the staking mechanism, such as selecting a technology provider, forming smart contracts, and appointing an auditor.
Following the approval of the staking proposal, ARB’s price has seen a significant increase, reaching $1.13 with a 3.14% rise in the last 24 hours. This positive market reaction reflects growing trader interest, as evidenced by the increased trading volume.
In conclusion, Arbitrum’s governance community has voted in favor of implementing a staking rewards program, which has led to an increase in ARB’s price. The project is now focusing on finalizing the details of the staking mechanism before launching the program. As with any investment in cryptocurrencies, it is important to conduct thorough market research before making any decisions.
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