According to TechFlow, on August 9, according to the Snapshot governance page, Frisson, head of Tally's market operations, initiated a proposal in the Arbitrum community to improve the utility and governance of tokens by introducing an ARB staking mechanism. The proposal suggests allowing token holders to capture value by delegating to active governance participants without initiating fee distribution. In addition, a liquid staked ARB token (stARB) will be launched through the Tally protocol, supporting automatic compounding and re-staking of future rewards, and compatible with DeFi.

The proposal points out that the current usage of ARB tokens in governance is low, and the increasing balance of Ethereum (ETH) in the Arbitrum DAO inventory may attract malicious attacks. Through staking, ARB tokens will be able to be used in re-staking and DeFi, while restoring the voting rights locked in the contract.