Encouraging Participation in ARB Staking and Governance
A new proposal by Frission, an ARB delegate, aims to allocate 50% of surplus sequencer fees to ARB holders who stake and delegate their tokens. This proposal is designed to incentivize ARB holders to actively participate in governance and improve the security of the Arbitrum DAO treasury, which currently holds $50 million worth of ETH.
Pushing Engagement with Staking Mechanism
- Frission’s proposal seeks to increase engagement by implementing an ARB staking mechanism.
- Stakers and delegates will earn rewards from future surplus sequencer fees.
- 50% of these fees will be allocated to stakers with an estimated 7% annual reward rate.
- Additionally, 1% of surplus fees will be distributed based on delegates’ Karma Scores.
- The change will only affect future network fees, leaving the current ETH reserves untouched.
- It also plans to integrate Tally’s liquid staking token system to ensure token liquidity.
Implementation and Timeline
- The proposal includes a request for a one-time payment of 100,000 ARB to cover development costs.
- If approved, a temperature check will be conducted in July, with a target launch date set for December.
- The new proposal builds upon a previous one that suggested using treasury funds to reward staking.
Community Controversy Surrounding GCP
The Arbitrum DAO faced backlash over the proposed Gaming Catalyst Program (GCP), which aimed to allocate 225 million ARB for Web3 gaming growth over three years. Despite concerns over the high budget, the proposal was approved with 76% of votes in favor.
Some key points of contention included:
- The allocation of 25 million ARB for operational expenses, up from the initial proposal.
- Questions about the necessity of such a large fund allocation for Web3 gaming.
- Doubts about the quality and justification of the proposed investment in existing Web3 games.
Support and Opposition
Entities like L2beat, Wintermute, and Treasure DAO supported the GCP proposal, while Blockworks Research and Camelot DAO opposed it. Despite mixed reactions, the community’s decision was clear in favor of the program.
Hot Take: Engaging ARB Holders through Staking Rewards
The ARB staking proposal by Frission presents an opportunity for ARB holders to actively participate in governance while earning rewards. By incentivizing staking and delegating, the proposal aims to push engagement and secure the Arbitrum DAO treasury. Despite past controversies, the community’s approval of the GCP proposal signals strong support for growth within the Web3 gaming ecosystem.
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