Arbitrum DAO Proposal Passed

The Arbitrum DAO has passed a temperature check proposal aimed at enhancing the utility of the ARB token and fortifying governance security.

The proposal, first discussed in June, was recently voted on-chain, receiving a 91% approval rate from over 25,000 participants.

Proposal Details

The proposal allows ARB token holders to stake and delegate their tokens for a liquid staked ARB token (stARB), representing their stake. This staked token aims to support:
– Auto-compounding of future rewards
– Restaking options
– Compatibility with decentralized finance applications

Tally’s liquid staking token system will be utilized for deployment.

Incentives for Participation

Future surplus sequencer fees will reward ARB token holders who stake and actively delegate their tokens, encouraging greater voter participation in the DAO.

Rationale

The proposal is driven by the ARB token’s underperformance in value accrual. It highlights that less than 1% of ARB tokens are actively used in the on-chain ecosystem, and that voter participation has declined since the DAO’s inception.

Security Measures

The proposal also addresses the need to mitigate potential governance attacks, especially due to the growing appeal of the Arbitrum treasury as a target.

Arbitrum Overview

Arbitrum is an optimistic rollup ecosystem and one of the leading Layer 2 solutions on Ethereum, with a total value locked of over $2 billion.