The Arbitrum community supports a proposal to develop a staking mechanism for the ARB token.
Arbitrum DAO voted in favor of a recent proposal from PlutusDAO that recommended the creation of a staking contract for ARB tokens to “incentivize long-term token holders.”
according to Proposal SnapshotMore than 66.7% of voters approved the establishment of a fund that would allocate 1% of the total ARB supply (100 million ARB) to distribute 12-month staking rewards.
At the same time, more than 33% of voters opposed the initiative. According to the proposal’s description, a staking mechanism based on existing treasury funds is “the most feasible option from a legal perspective, as it does not involve revenue sharing.”
“The possibility of later moving to a model that allows tokens to adopt other methods of value-adding is also not ruled out.”
While no timeframe was explicitly mentioned, PlutusDAO said the final implementation timeline “is subject to the outcome of vendor decision proposals, community review, audit timelines and subsequent findings.”
It is unclear how much it will cost Arbitrum DAO to develop the staking mechanism, as “the true extent of these costs can only be estimated after these decisions are made,” PlutusDAO noted.
According to CoinGecko, ARB surged 2.5% to $1.13 on the news.