The Arbitrum Community Supports Proposal for Staking Mechanism
The Arbitrum community has backed a proposal put forth by PlutusDAO to establish a staking contract for ARB tokens. This move aims to provide incentives for long-term token holders. The proposal received approval from over 66.7% of voters, with 1% of the total ARB supply (100 million ARB) being allocated for distributing staking rewards over a period of 12 months.
However, approximately 33% of voters were against the initiative. The proposal suggests using existing treasury funds as the basis for the staking mechanism, which is seen as a legally viable option that does not involve sharing revenues. PlutusDAO also highlighted the possibility of exploring other value accrual methods for the token in the future.
The implementation schedule for the staking mechanism has not been specified and will depend on various factors such as vendor decisions, community review, audit schedules, and subsequent findings. The cost associated with developing this mechanism is yet to be determined. Following the news, ARB experienced a 2.5% surge, reaching $1.13.
Hot Take: Proposal Approved for ARB Token Staking Mechanism
The Arbitrum community has given its support to PlutusDAO’s proposal to create a staking contract for ARB tokens. This move is intended to incentivize long-term token holders by providing them with staking rewards. While there was some opposition to the initiative, the majority of voters approved setting up a fund that would allocate 1% of the total ARB supply for distributing these rewards over a span of 12 months.
By utilizing existing treasury funds, this proposal offers a legal and revenue-sharing-free approach to implementing the staking mechanism. PlutusDAO has also left room for the possibility of exploring alternative methods for value accrual in the future. The timeline and costs associated with developing the staking mechanism have yet to be determined. Nevertheless, the news has already had a positive impact on ARB’s price, leading to a 2.5% increase.
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