Arbitrum DAO Passes Proposal To Diversify 35M ARB Tokens Into Stable, Liquid, And Yield-Earning Assets With 99.44% Votes In Favor
In Brief
Arbitrum DAO passed the proposal to diversify 35 million ARB tokens into stable, liquid, and profitable RWA investments.
Decentralized autonomous organization Arbitrum DAO, overseeing the Ethereum layer 2 blockchain Arbitrum‘s development, announced the successful passing of a proposal to diversify 35 million ARB tokens into stable, liquid, and profitable real-world asset (RWA) investments, which garnered 99.44% of the votes in favor.
The funds will be allotted to projects previously recommended by the Stable Treasury Endowment Program (STEP) committee. These encompass Securitize (BUIDL), which is slated to receive 11 million ARB tokens, while Superstate (USTB) and Ondo (USDY) will each be allocated 6 million ARB tokens. Additionally, OpenEden (TBill), Backed Finance (bIB01), and Mountain (USDM) will receive 4 million ARB tokens per project.
The suggestion seeks to bolster the emerging RWA ecosystem on Arbitrum by reallocating funds from the Arbitrum treasury into assets known for their stable value, low volatility, liquidity in conversion, and yield that is independent of cryptocurrency market fluctuations.
With successful approval, the Arbitrum Foundation and program manager will now proceed with executing the recommendations.
Arbitrum’s ARB Tokens To Decentralize Governance Across Protocols
Arbitrum represents a protocol designed to enhance the speed and cost-efficiency of Ethereum transactions. It integrates multiple blockchains, such as Arbitrum One, Arbitrum Nova, and an independent AnyTrust blockchain tailored for extremely cheap transactions.
The allocation of ARB tokens decentralizes governance for Arbitrum One and Arbitrum Nova and its protocols. ARB tokens enable voting on governance proposals within Arbitrum DAO, empowering ARB holders to control the development of the protocols and blockchains collectively. In addition, ARB holders have the option to entrust their authority to vote to chosen delegates.
Notably, on July 16th, Arbitrum intends to release 2.9% of its circulating supply, totaling 92.6 million tokens valued at approximately $64 million at present.
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