The governance proposal allowing ARB holders to lock their tokens in exchange for a yield is poised for approval, as the majority of token holders support the proposal to allocate 100 million tokens for staking rewards. The voting process is expected to conclude today.
The proposal suggests that the Arbitrum DAO utilize funds from the Arbitrum treasury to finance staking rewards, which will be distributed to stakers through a smart contract over a period of 12 months.
The proposal offers several options for token holders to decide on the allocation of the 3.5 billion ARB tokens in the treasury funds or to reject the proposal entirely. It outlines a tiered token allocation system, with allocations ranging from 1% (100 million tokens) to 1.75% (175 million tokens) of the total 10 billion ARB supply to be set aside from the DAO's treasury for staking incentives.
If the proposal is passed, the Arbitrum DAO will receive another proposal concerning implementation, which will aim to decide the vendor of the implementation and associated contracts and an auditor. The final implementation schedule depends on the result of the vendor decision proposal, community review, audit schedules, and subsequent findings.
Arbitrum
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