The Arbitrum DAO has adopted a new proposal which elevates the utility of the ARB token by introducing staking options and advancing governance structures. On August 15, the DAO community showed strong support for the initiative, with an impressive 91% of over 25,000 participants backing the proposal during onchain voting.
The newly approved measures focus on the introduction of a liquidity-staking ARB token, known as stARB, through the Tally protocol. This development is set to unlock significant functionalities for the ARB token by allowing holders to stake and delegate their tokens. In return, they receive stARB tokens, which facilitate automatic compounding of rewards and ensure compatibility with various decentralized finance (DeFi) applications.
This strategy aims to boost active engagement within the Arbitrum ecosystem. Token holders who participate in staking and delegation will eventually be eligible for surplus sequencer fees, driving more involvement and addressing the previously low engagement levels.
Furthermore, the proposal addresses concerns regarding the underperformance of the ARB token in accruing value, highlighting that less than 1% of ARB tokens are actively utilized within the onchain ecosystem. It also focuses on strengthening governance to prevent potential attacks, a necessary step as the Arbitrum treasury grows and becomes more appealing to malicious actors.
Arbitrum Airdrop: Offchain Labs Gives Up Control to Community-Run DAOThis initiative follows several other significant activities within the Arbitrum community, including the allocation of 225 million ARB tokens for the Gaming Catalyst Program, aimed at fostering growth over the next three years.
Despite these advancements, the Arbitrum DAO recently chose not to fund legal defenses for developers associated with Tornado Cash, showcasing the diverse and complex decisions faced by the community. The proposal to fund their legal defenses was initiated by the pseudonymous delegate DK on March 7, sought to establish a “robust legal defense” for developers Storm and Pertsev. It suggested transferring between 200,000 and 600,000 ARB tokens, equivalent to about $400,000 to $1.2 million, from the community wallet to fund their legal costs.
