Arbitrum DAO Launches ARB Staking and Governance Upgrades

Strong Community Support for New Proposal

The proposal received overwhelming support, with 91% of the participating community backing the changes during on-chain voting. This strong endorsement reflects the community’s enthusiasm for enhancing the functionality and security of the ARB token.

Introduction of stARB Token for Liquidity Staking

One of the key elements of the new proposal is the introduction of a liquidity-staking ARB token, known as stARB, through the Tally protocol. This development offers several benefits:

• Staking and Delegation: ARB holders can now stake and delegate their tokens to receive stARB tokens.
• Automatic Compounding: stARB tokens facilitate automatic compounding of rewards.
• DeFi Compatibility: stARB is designed to be compatible with various decentralized finance (DeFi) applications.

Boosting Engagement and Token Utility

The introduction of stARB aims to increase active engagement within the Arbitrum ecosystem. By participating in staking and delegation, token holders can become eligible for surplus sequencer fees. This initiative is expected to drive greater involvement and address previously low engagement levels.

Enhancing Governance and Security

In addition to improving token utility, the proposal also tackles governance concerns:

• Value Accumulation: The proposal addresses the issue of ARB token underperformance, noting that less than 1% of ARB tokens are actively used in the on-chain ecosystem.
• Governance Security: The upgrades include measures to strengthen governance and protect against potential attacks, especially as the Arbitrum treasury grows and becomes more attractive to malicious actors.

Overall, these upgrades are designed to enhance both the utility of the ARB token and the security of the DAO’s governance, marking a significant step forward for the Arbitrum ecosystem.