Arbitrum Decentralized Autonomous Organization (DAO) has taken an important step towards increasing the utility of the ARB token and strengthening its governance security.
Arbitrum DAO Approves Temperature Control Proposal Regarding ARB Staking
The proposal, which was put up for discussion in June and recently put to an on-chain vote, received an impressive 91% approval rating from over 25,000 participants.
The proposal aims to empower ARB token holders by allowing them to stake and delegate their tokens.
In return, participants will receive a liquid staked ARB token (stARB) representing their stake.
stARB tokens offer features like automatic compounding of future rewards, re-staking options, and compatibility with decentralized finance (DeFi) applications.
To encourage active participation, future overscorer fees will reward ARB token holders who stake their tokens and actively participate. The goal is to increase participation in the DAO’s decision-making processes.
The proposal identifies the underperformance of the ARB token in terms of value appreciation. Currently, less than 1% of ARB tokens are actively used in the on-chain ecosystem.
Voter turnout has gradually declined since the DAO’s inception. Additionally, the proposal aims to protect against potential governance attacks, given the increasing attractiveness of Arbitrum as a target.
As an optimistic rollup ecosystem, Arbitrum remains a leading Layer 2 solution on the Ethereum network.
Its total value locked (TVL) exceeds $2 billion, reflecting its importance in the broader crypto landscape.
In summary, Arbitrum DAO’s approval of the temperature control proposal represents strong community approval for measures that increase token utility and strengthen governance mechanisms. As the ecosystem continues to evolve, staking and active participation are crucial to long-term success.
*This is not investment advice.