Arbitrum DAO Approves $24M Investment in Real-World Assets: Full Damage
Arbitrum will allocate 35 million ARB tokens to invest in RWA products.
The initial list had 17 products, but the protocol will only invest in six.
The six products include BlackRock’s BUIDL and Ondo Finance’s USDY.
Arbitrum, Ethereum’s second layer (L2) scaling solution, is moving forward with a proposal to allocate 35 million ARB tokens to invest in real-world asset (RWA) products after receiving approval from the DAO community.
Notably, on June 23, the Arbitrum Stable Treasury Endowment Program (STEP) Committee launched six investment projects to diversify its treasury portfolio. The initial shortlist included 17 products, but only six were selected to avoid deploying “too little” funds or exposing principals to “operational risk or default.”
The six products include: 11 million ARB for asset manager BlackRock’s Ethereum-based tokenized fund BUIDL; 6 million ARB for USDY Ondo Finance; 6 million ARB for USTB Superstate; 4 million ARB for USDM Mountain Protocol; 4 million ARB for OpenEden’s US Treasury Bills (T-Bills); and 4 million ARB for bIB01 Finance-backed.
According to CoinMarketCap data, the ARB token price is currently $0.6872, down nearly 4% in the past 24 hours. The digital asset’s price has fallen 26.72% in the past 30 days. A previous Coin Edition report noted that 97% of ARB holders are currently unable to invest.
If the proposal is successful, it will provide $ARB with the opportunity to capture value, which is a first for L2 tokens. While it’s unclear how much value could be captured, the main takeaway is that some of the value created by Arbitrum will now go directly to…
— Average Joe’s Crypto (@AvgJoesCrypto) June 28, 2024
The distribution of 35 million ARB tokens (worth $24 million at current prices) could provide a much-needed boost to the project. Additionally, Arbitrum has proposed a staking mechanism that would reward stakeholders with 50% of future fees.
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