On August 10th, Arbitrum DAO has released the ARB Staking proposal vote, which suggests implementing ARB staking to unlock the utility of ARB and improve the governance and security of the Arbitrum protocol without distributing fees to token holders. Through ARB staking, token holders who delegate to active governance participants will be able to receive value. ARB staking will allocate future rewards generated by the DAO (such as sequencer fees, MEV fees, validator fees, token inflation, and treasury diversification) to token holders who delegate to active governance participants. The proposal will also implement liquidity staking of ARB tokens (stARB) through the Tally protocol, allowing any future rewards to automatically compound, be (re)staked, and be compatible with DeFi. Additionally, the proposal will work with Arbitrum DAO to determine whether and how to fund rewards and distribute them between token holders and delegates. The proposal will end voting on August 16th.
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