Decentralized autonomous organization overseeing the Arbitrum (ARB) blockchain, Arbitrum DAO announced the nomination of six projects to receive 35 million ARB under its Stable Treasury Endowment Program (STEP).
These projects include Securitize (BUIDL), slated to receive 11 million ARB, Ondo (USDY), set to receive 6 million ARB, Superstate (USTB) granted with 6 million ARB, Mountain (USDM) with 4 million ARB allocation, OpenEden (TBill) intended to receive 4 million ARB, and Backed Finance (bIB01) granted with 4 million ARB tokens.
Initially, the proposal was introduced in April with the goal of supporting the emerging RWA ecosystem on Arbitrum. This involved diversifying 35 million ARB from Arbitrum treasury into assets characterized by stability in value, minimal volatility, liquidity in conversion, and providing yield that is uncorrelated with cryptocurrency markets, akin to the “risk-free rate of return” of United States Treasuries.
The committee was subsequently appointed to review the applications, evaluating more than thirty service providers that had applied under the STEP. The proposed allocation functions not as a grant but as an investment that Arbitrum governance retains control over and can withdraw, contingent upon agreed-upon conditions with the selected recipients.
Arbitrum Community Shows High Opposition To Proposal, Voting Continues
Currently, Arbitrum is seeking a community vote to decide whether to approve or reject the list of service providers recommended for diversifying its treasury under the initial phase of the STEP program. A vote in favour directs the Arbitrum Foundation and the program manager to initiate the implementation of these recommendations. A vote against will prompt the committee to reconvene and review the delegates’ feedback to propose a revised allocation that addresses their concerns.
The current rate of opposition to the proposal stands at 76.8%. The voting process is currently underway and is expected to conclude on July 11th.
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