Crypto News- The Arbitrum decentralized autonomous organization (DAO) has recently made a significant stride in the realm of decentralized finance by giving the green light to a pivotal governance proposal. This proposal opens the door for ARB token holders, the native cryptocurrency of Arbitrum, to partake in staking activities, thus earning enticing token-based yields in return. Funded through the Arbitrum treasury, this initiative is elegantly structured to disburse rewards over a year, orchestrated through the seamless execution of a smart contract.
Arbitrum DAO Greenlights Proposal for Enabling Token Staking
The crux of this groundbreaking proposal, which recently culminated, lay in its tiered approach to token allocation. It presented a selection of options for distributing staking rewards, offering the allocation of 1%, 1.5%, or 1.75% of the total 10 billion ARB token supply, each with its respective rewards. Following rigorous deliberation, an overwhelming majority of over 66% of DAO members rallied behind the most conservative choice, dedicating 1% of the overall supply (equivalent to 100 million tokens) toward staking incentives.
Nonetheless, it’s worth noting that this approval was not devoid of dissenting voices, with a 33% minority opposing the proposal. This rift within the community underscored varying viewpoints concerning the utilization of treasury funds for incentivizing staking activities.
One of the most captivating facets of this staking mechanism is the estimated annualized percentage yield, a figure that can fluctuate within the range of 7.84% to 78.43%. The precise yield is contingent on the extent to which the ARB token supply is staked by the community. Diverging from traditional staking mechanisms primarily geared toward network security or revenue distribution, this innovative approach distinguishes itself by offering stakers a direct token yield sourced from the treasury.
Furthermore, the DAO has set the stage for considering a subsequent proposal that will delve into the granular specifics of the staking implementation. This encompasses critical decisions such as selecting a technology service provider to oversee the implementation process, designing the requisite contracts, and appointing an auditor responsible for ensuring the process’s integrity and transparency.
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