Arbitrum Community Preliminarily Approves Proposal to Enable ARB Staking to Unlock Token Utility

PANews reported on August 16 that the Snapshot governance page showed that Frisson, head of Tally's market operations, initiated a "Enable ARB staking to unlock token utility" proposal in the Arbitrum community and passed with 91.54% support. The proposal proposes to unlock ARB utility by enabling ARB staking and improve the governance and security of the Arbitrum protocol, but will not start distributing fees to token holders for the time being.

Through ARB staking, token holders will be able to capture value by delegating tokens to users who actively participate in governance. The proposal will also implement a liquidity staking ARB token (stARB) through the Tally protocol, which can automatically compound any future rewards, can be (re)staking, and is compatible with DeFi. In addition, the initiator of the proposal said that it will work with Arbitrum DAO to decide whether and how to fund the rewards and distribute the rewards between token holders and delegators.

According to the plan schedule, this vote is a preliminary review on Snapshot. If passed, an on-chain proposal will be published on Tally this month to apply for funds and start development. The smart contract will be submitted for review in September, and an on-chain proposal containing a complete ARB staking implementation will be submitted on Tally in October.