Arbitrum DAO has recently taken a significant step to enhance the utility of the ARB token by implementing new stacking and governance updates. In a preliminary poll, the proposal garnered overwhelming support, with 91% of the over 25,000 participants voting in favor. The on-chain voting process concluded on August 15, reflecting a strong consensus within the community.

ARB Stacking and Governance Enhancements

The core of this proposal is centered around boosting the functionality of the ARB token through the introduction of ARB stacking. Although this update doesn't yet include direct commission distribution to token holders, it does pave the way for liquidity stacking via the Tally protocol with the introduction of the stARB token.

This new mechanism allows ARB holders to stack and delegate their tokens in exchange for stARB, a representation of their stacked assets. The stARB token is designed to automatically accrue future rewards, offer restacking options, and integrate seamlessly with various decentralized finance (DeFi) applications.

This strategic move is expected to significantly increase participation in the Arbitrum ecosystem. By enabling ARB holders to actively stack and delegate their tokens, they will eventually become eligible for additional sequencer commissions, incentivizing greater involvement in governance.

Tackling ARB Token Inefficiency and Strengthening Security

One of the primary issues addressed by this proposal is the underutilization of the ARB token in terms of value generation. Currently, less than 1% of ARB tokens are actively engaged within the on-chain ecosystem, and voter participation has been on the decline since the DAO's inception.

The proposal also emphasizes the importance of safeguarding governance against potential threats. As the Arbitrum Treasury continues to grow, it presents a more attractive target for malicious actors. By implementing the stacking mechanism and promoting active delegation, the DAO aims to build a more secure and resilient governance framework, crucial for protecting the treasury and ensuring the integrity of the decision-making process.

Earlier in June, Arbitrum's development team allocated 225 million ARB tokens, valued at approximately $215 million, to support a three-year Gaming Catalyst program aimed at fostering innovation in the gaming sector. Additionally, in March, the Arbitrum DAO notably rejected a proposal to cover the legal fees of Roman Shtorm and Alexey Pertsev, developers of the Tornado Cash (TORN) privacy protocol.

These updates reflect Arbitrum DAO's commitment to reinforcing the utility and security of the ARB token while encouraging active community engagement in the governance process. $ARB $DASH

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