Arbitrum DAO approves ARB proposal to distribute 100 million ARB as staking rewards

Arbitrum Decentralized Autonomous Organization (DAO) approved a proposal to enable its ARB token holders to stake their holdings and earn a yield. Over $100 million in rewards will be set aside for distribution among staking users over a twelve-month period.

Also read: Arbitrum price aims 30% rally after breakout from a double bottom pattern

Arbitrum DAO passes proposal to reward ARB stakers

The Arbitrum DAO passed a proposal for a tiered system to allocate staking rewards to ARB token holders. The basis for the proposal was that the DAO’s treasury holds 3.54 billion ARB tokens.

Arbitrum DAO is in complete control of the treasury and all the surplus revenues. This encouraged the community to approve staking rewards for users. The proposal calls for a mechanism to distribute ARB tokens to stakers. A staking mechanism is likely to incentivize long-term token holders for future token utility proposals.

As seen in the snapshot below, 66.76% users approved the proposal to stake ARB for rewards, while 33.24% rejected the same. The vote ended on November 6 at 10:24 GMT. 

Proposal for ARB stakers

The final proposal has the option to allocate 1% (100 million tokens), 1.5% (150 million tokens), or 1.75% (175 million tokens) of the total 10 billion ARB supply as staking rewards. The majority of voters favored the lower tier, 1% allocation or 100 million ARB distribution to stakers. The community is in disagreement still, as 33.24% DAO members voted against the staking incentives.

ARB price climbed 4% on the day. At the time of writing, ARB price is $1.1299 on Binance.