The idea to provide a staking mechanism for ARB tokens has received approval from the Arbitrum community.
In order to “incentivize long-term token holders,” PlutusDAO has proposed developing a staking contract for ARB tokens, and Arbitrum DAO voted in support of that idea.
The proposal snapshot shows that more than 66.7% of respondents favored creating a fund and designating 1% of the 100 million ARB total supply to be used for staking incentives during 12 months.
In addition, more than thirty-three percent of voters disapproved of the measure. The staking method based on the current treasury money is the “most palatable option from a legal perspective, as it does not involve sharing revenues,” according to the proposal’s description.”
It also does not rule out the possibility of later moving on to a model that allows for other value accrual methods to the token.” The final implementation plan, according to PlutusDAO, “depends on the result of the vendor decision proposal, community review, audit schedules, and subsequent findings,” albeit no specific time periods were given.
Furthermore, PlutusDAO pointed out that the “true extent of these costs can only be estimated after these decisions are made,” making the cost of developing a staking mechanism for the Arbitrum DAO unknown. According to CoinGecko, ARB increased 2.5% in response to the news, hitting $1.13.
