The Arbitrum DAO Voting on Proposal to Allow ARB Holders to Lock Tokens for Yield
The Arbitrum DAO is currently in the process of voting on a significant proposal that would enable ARB holders to lock their tokens and receive a yield in return. The community vote, which will conclude on November 6, is deciding whether to use Arbitrum treasury funds to fund the staking yield and distribute it through a smart contract over 12 months.
Overview of the Proposal
Initially introduced by PlutusDAO in September, the proposal suggests allocating between 1% and 1.75% of the total 10 billion ARB supply from the DAO’s treasury for staking rewards. It also includes penalties for early withdrawal to incentivize long-term investment.
Community Support and Voting Trends
Currently, the majority of votes support the introduction of staking, indicating a high likelihood of approval. Among these votes, 53% favor funding the staking feature with 175 million ARB (1.75% of total supply) from the DAO treasury. In contrast, 21.3% endorse staking with 150 million tokens (1.5% of supply), and 18% suggest allocating 125 million ARB tokens (1.25% of supply) for staking. Only 6.2% of voters have rejected the staking proposal.
Hot Take: Potential Benefits for ARB Holders
If approved, this proposal has the potential to provide significant benefits for ARB holders. By locking their tokens and participating in staking, holders can earn a yield over a 12-month period. This incentivizes long-term investment and aligns token holders’ commitment with the ecosystem’s objectives. The strong community support for this proposal suggests that many ARB holders recognize the value of staking and the potential rewards it can bring. Ultimately, this voting outcome will shape the future of staking in the Arbitrum DAO and impact the overall ARB ecosystem.
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