Frission, a representative of the Arbitrum ecosystem and a core team member of Tally, proposed a mechanism to use 50% of future transaction fees to reward ARB token holders for staking and proactively delegating their assets. . This proposal focuses on security concerns related to Arbitrum DAO’s growing treasury, which currently totals over $50 million.
What’s happening on Arbitrum Front?
Given that only 10% of the ARB is actively used in governance and voter turnout is decreasing, many believe the treasury could become an attractive target for potential governance attacks. Frission’s proposal aims to incentivize governance participation, increase the economic security of DAOs, and reduce the risk of treasury attacks.
This proposal will allow ARB holders to stake and delegate their assets, allocating 50% of future excess collocation fees as rewards. The system is expected to provide an estimated 7% annual reward rate to stakers based on current prices. More importantly, Arbitrum’s current Ethereum treasury will not change and only future transaction fees will go to stakers.
The proposal plans to include Tally’s liquidity token staking system to maintain the liquidity of staked assets. The mechanism will ensure liquidity while allowing staking positions to participate in governance.
Notable details about the proposal
A preliminary process control vote on the proposal is expected to take place next month on Snapshot. If approved, smart contract development will begin and the final on-chain vote could take place in September. Last year, another proposal recommended using Arbitrum’s treasury funds to Funds staking yields and distributes them to stakers via smart contracts over 12 months.
Initial process controls were approved but did not progress to a final AIP after receiving feedback on feasibility. After the Arbitrum airdrop event, the ARB token did not receive the expected attention from investors. The main reason is the amount of token unlocks and significant asset value allocated to the team. It remains to be seen how investors will react following this vote.
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According to Cointurk
