Arbitrum has rolled out a proposal designed to facilitate ARB staking, inviting community feedback with a vote deadline set for August 16.

An active contributor in the governance of the Layer 2 network, Frisson, has put forward a proposal requesting community voting. Arbitrum This proposal aims to unlock the utility of ARB tokens and enhance governance and security within the Arbitrum protocol by introducing ARB staking, though it intentionally does not facilitate fee distribution to asset holders. Holders who choose to delegate their assets to those actively participating in governance will have opportunities to gain value.

Moreover, it introduces stARB via the Tally Protocol, which enables any future incentives to automatically compound, be staked, or restaked while remaining compatible with DeFi applications.

Currently, ARB encounters difficulties in building value and effectively serving as a governance instrument. Meanwhile, the treasury has accumulated over 16 million ETH from surplus fees generated by Arbitrum One and Nova, which raises concerns about the potential for malicious exploitation of the DAO treasury.

The implementation of ARB staking not only introduces new utility but also fortifies governance by creating a structure that channels rewards from DAO-generated revenue streams, such as sequencer fees, MEV fees, validator fees, token inflation, and treasury diversification, to those holding tokens who choose to support governance participants. This system also reestablishes voting power to the DAO, which was previously constrained within contracts. Arbitrum DAO Following the successful completion of a temperature check, the proposal could secure $200,000 USD in ARB funding.

Should the proposal pass the temperature check, an on-chain plan will be submitted for the allocation of $200,000 USD in ARB. This funding would facilitate the creation of ARB staking smart contracts, the integration of ARB staking into Tally.xyz, the incorporation of Karma into ARB staking, and the auditing of these smart contracts. The voting process is currently in progress, with a deadline of August 16. ARB Arbitrum serves as a Layer 2 scaling solution for Ethereum, aimed at enhancing the scalability and efficiency of the Ethereum network. It accomplishes this by utilizing rollups to increase transaction throughput and lower costs while preserving the security integral to Ethereum.

The ARB token is an ERC-20 governance token, granting users the ability to participate in on-chain governance within the Arbitrum DAO. It is generated through a smart contract on Arbitrum One, which leverages Arbitrum's rollup technology.

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Arbitrum Alisa, a committed journalist at Cryptocurrencylistings, has a strong focus on cryptocurrency, zero-knowledge proofs, investments, and the expansive field of Web3. With a sharp focus on emerging trends and technologies, she provides in-depth coverage designed to keep readers informed and engaged in the constantly shifting landscape of digital finance.

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