Arbitrum DAO approves temperature check proposal on ARB staking

The Arbitrum DAO has passed a temperature check proposal focused on increasing the utility of the ARB token and strengthening the governance's security.

The proposal, first discussed in June and recently put to an on-chain vote, received 91% approval from more than 25,000 participants.

It aims to let ARB token holders stake and delegate their tokens in return for a liquid staked ARB token (stARB) representing their stake. This staked token will support auto-compounding of future rewards, restaking options, and compatibility with decentralized finance applications. The deployment will utilize Tally’s liquid staking token system.

Future surplus sequencer fees will reward ARB token holders who stake and actively delegate their tokens, aiming to increase voter participation in the DAO.

This proposal says its primary driver is the ARB token’s underperformance in value accrual. It further points out that less than 1% of ARB tokens are actively used within the on-chain ecosystem, and voter participation has steadily declined since the DAO was established.

Additionally, the proposal addresses the need to prevent potential governance attacks, motivated by the growing allure of the Arbitrum treasury as a target.

Arbitrum, an optimistic rollup ecosystem, remains one of the top Layer 2 solutions on Ethereum, with a total value locked of over $2 billion.