- If approved, the plan would include ARB staking to increase the token’s utility and enhance governance.
To provide the ARB token more usefulness and boost its onchain usage, the Arbitrum community is voting to start staking.
After receiving permission, Arbitrum would produce a liquid staking token called stARB and implement staking using the Tally governance system. The present concept does not include turning on the fee switch, but the Arbitrum DAO would still have the authority to activate fee distribution and transfer the money to ARB stakers.
The plan is up for vote until August 15th, and 98.8% of voters support it, meaning that the revisions are likely to pass.
Proposal Driven by Tally
The ARB token is having difficulty gaining value; less than 1% of ARB tokens are being utilized onchain, and only 10% of ARB coins are contributing to governance, according to a blog post by Tally’s Chief Revenue Officer, 0xFrisson.
An add-on front end for DAO governance is called Tally. Voters and delegates can create personal profiles and utilize their governance rights, and DAO operators can develop home pages and propositions. The firm collaborates with Uniswap and Aave, two of DeFi’s biggest DAOs.
ARB’s Inadequate Work
Since its introduction, Arbitrum’s ARB has primarily been in a consistent downward trend.
The token is currently more than 50% below its launch price, having peaked at $2.2 in January 2024 after initially trading for about $1.3 in March 2023. Bitcoin has grown by 150% in the same period of time.
Even if investors have suffered from the price activity, this does not always mean that the fundamentals are weak. With $2.7 billion in TVL, Arbitrum is the largest Ethereum Layer 2 (L2) in terms of total value locked.
Since August 8, when the proposal went live, the price of Arbitrum has increased by more than 20%, from $0.48 to $0.58.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
