The Arbitrum DAO is in the midst of voting on a significant proposal that, if approved, would allow ARB holders to lock in their tokens in return for a yield paid out in tokens. The decision, now subject to an ongoing community vote, is scheduled to conclude on November 6.
Initially introduced by PlutusDAO in September, the proposal recommends the DAO to use Arbitrum treasury funds to fund the staking yield and distribute it to stakers through a smart contract over 12 months.
The governance proposal being voted on presents multiple options for users to decide on the use of the 3.5 billion ARB tokens ($3.4 billion) in treasury funds — or to reject the proposal altogether. It outlines a tiered token allocation system, suggesting that between 1% (100 million tokens) and 1.75% (175 million tokens) of the total 10 billion ARB supply be earmarked from the DAO’s treasury for staking rewards.
The proposed staking model also includes penalties for early withdrawal to encourage stakeholders to maintain their investments, thereby aligning the commitment of token holders with the ecosystem’s long-term objectives.
Community support and voting trends
Currently, the clear majority of the votes support the introduction of staking — indicating a strong likelihood that the proposal may be approved in the coming days.
Of this majority, 53% of the voters are in favor of funding the staking feature with 175 million ARB (representing 1.75% of the total supply), which would come from the Arbitrum DAO treasury, which holds a total of 3.5 billion tokens.
In contrast, 21.3% of voters endorse the approval of staking with 150 million tokens (1.5% of the total supply), while 18% suggest allocating 125 million ARB tokens (1.25% of the supply) for staking.
Meanwhile, only 6.2% of the Arbitrum DAO voters have rejected the staking proposal.
