🔥🔥🔥 #ArbitrumDAO approves temperature check proposal on $ARB staking
Arbitrum DAO Approves Proposal to Enhance ARB Token Utility and Governance Security
The Arbitrum DAO has successfully passed a temperature check proposal aimed at boosting the utility of the ARB token and fortifying the governance structure's security.
Initially proposed in June and recently subjected to an on-chain vote, the proposal garnered overwhelming support, with 91% of over 25,000 participants voting in favor.
The approved proposal introduces the ability for ARB token holders to stake and delegate their tokens in exchange for a liquid staked ARB token (stARB), which represents their stake. This stARB token will enable features such as auto-compounding of future rewards, #restaking options, and integration with decentralized finance (DeFi) applications, leveraging Tally’s liquid staking token system.
Additionally, ARB token holders who stake and actively delegate their tokens will be rewarded with future surplus sequencer fees, a measure designed to boost voter participation in the DAO.
The driving force behind this proposal is the underperformance of the ARB token in terms of value accrual. The proposal highlights that less than 1% of ARB tokens are actively engaged within the on-chain ecosystem, and voter participation has been on a steady decline since the DAO's inception.
Furthermore, the proposal addresses the growing need to prevent potential governance attacks, especially as the Arbitrum treasury becomes an increasingly attractive target.
Arbitrum, a leading optimistic rollup solution on Ethereum, continues to stand out as one of the top Layer 2 networks, with a total value locked (TVL) exceeding $2 billion.
Source - theblock.co
