The Arbitrum DAO has supported implementing ARB token staking to improve security and governance, with 91.5% of votes.
Token staking is being implemented with the cooperation of the Arbitrum DAO to improve governance and strengthen the protocol’s security.
More than 91% of voters supported the temperature check idea by Frisson, Tally’s head of marketing, while 8.46% voted against it.
The project aims to strengthen the Arbitrum protocol’s security and governance, observed that voter turnout has decreased since the Arbitrum DAO’s introduction and that just 10% of ARB’s circulating supply is “actively used in governance.”
ARB holders who assign their tokens to active governance members should be able to profit from the new staking mechanism, and the liquid staked ARB token (stARB) will facilitate the auto-compounding of future payouts and work with decentralized finance apps.
Staking as Insurance Against Governance Attacks
The staking proposal’s protection of the Arbitrum DAO treasury, which has accumulated excess fees of over 16 million ETH, is one of its main features.
Frisson emphasized the increasing potential of governance assaults, pointing out that a malicious actor would find it more “economically attractive” to undertake a governance attack on the DAO treasury as its value rises.
Tally has allotted $200,000 in ARB tokens as part of its development budget for the staking solution. Smart contract audits are supposed to be finished in September, and the staking mechanism will be fully implemented in October.
ARB’s price dropped despite the news, closing at a loss of around 3%, according to statistics. The $1.66 trillion asset manager Franklin Templeton revealed plans to introduce a money market fund on Arbitrum barely one week prior to the clearance.
Additionally accessible on and Polygon is the Franklin OnChain U.S. Government Money Fund (FOBXX).
