Arbitrum Votes to Reward Staking for Locked ARB Users

Arbitrum DAO has announced a successful vote to reward staking for users who lock ARB tokens. The proposal has now reached its conclusion as of the evening of November 6, although the voting dynamics remained tense.

Arbitrum Votes to Reward Staking for Locked ARB Users

Updated as of November 6, 2023:

By late evening on November 6, the proposal has officially passed, with the chosen option allocating 1% of the total supply (100 million ARB tokens) over a span of 12 months. The approval rate stood at 66.76%, indicating strong community support within Arbitrum.

Estimated staking yields for this option are expected to range from 7.84% to 78.43%.

Arbitrum will proceed with further votes to synchronize detailed implementation plans for this proposal. Specifically, voting will cover the selection of support units and technical infrastructure required for the implementation.

Concurrently, an audit plan for smart contracts (scheduled to last two weeks) will precede the official activation on the mainnet to facilitate reward distribution.

The price of ARB tokens has been trending upwards in recent days following the market's upward momentum, reaching a new 3-month peak upon the proposal's approval.

4-hour chart of the ARB/USDT pair on Binance as of 06:15 PM on November 6, 2023

Original article:

The proposal began voting on October 30 and concluded at 5:54 PM on November 6.

Details of the proposal indicate that the Arbitrum DAO Treasury has recently reclaimed approximately 70 million ARB tokens. These tokens were originally airdropped to users who did not claim them before the deadline.

With these recovered funds, the proposal suggests reallocating these rewards to users opting to lock ARB tokens.

The voting options include:

• 1.75% of the total ARB supply (with APR ranging from 13.73% to 137.25%)
• 1.5% of the total ARB supply (with APR ranging from 11.76% to 117.65%)
• 1.25% of the total ARB supply (with APR ranging from 9.8% to 98.04%)
• 1% of the total ARB supply (with APR ranging from 7.84% to 78.43%)
• Not accepting Staking rewards.

Additionally, the author suggests that votes should also consider aspects related to token vesting in Arbitrum's recent liquidity incentive program, STIP. Concurrently, a proposal to appoint an Arbitrum Coalition to oversee the staking allocation process is also up for voting.

At the time of writing, the votes are leaning towards the option of allocating 1% of the total supply (100 million ARB tokens) with 63% of the votes.

However, the "Allocation of 175 million ARB" option is closely behind with approximately 37% of the votes.

With the voting period nearing its end, it is likely that the above proposal will be approved. Coin68 will promptly update its readers with detailed results of this proposal.