The Arbitrum DAO has recently initiated a voting process to distribute staking rewards to users who have locked their ARB tokens. However, this proposal has sparked intense debate among the community as the voting deadline draws near. The proposal was launched on October 30th and is set to conclude on November 6th.
The proposal at hand revolves around the Arbitrum DAO Treasury’s recent retrieval of approximately 70 million ARB tokens. These tokens were originally distributed as part of an airdrop but remained unclaimed by users within the allocated timeframe.
With this retrieved pool of tokens, the proposal suggests that the DAO could reallocate these assets as rewards for users who choose to stake their ARB tokens. The voting options presented to ARB token holders are as follows:
- Allocate 1.75% of the total ARB supply (with Annual Percentage Rate, APR, ranging from 13.73% to 137.25%).
- Allocate 1.5% of the total ARB supply (with APR ranging from 11.76% to 117.65%).
- Allocate 1.25% of the total ARB supply (with APR ranging from 9.8% to 98.04%).
- Allocate 1% of the total ARB supply (with APR ranging from 7.84% to 78.43%).
- Reject Staking rewards allocation.
Additionally, the voting process also considers the token emission aspects of Arbitrum’s recent STIP (Staking Token Incentive Program) that incentivizes liquidity. Simultaneously, another proposal to form an oversight committee known as the “Arbitrum Coalition” to monitor the staking rewards allocation process is also under consideration.
At the time of writing, the voting appears to be leaning towards the option to allocate 1% of the total ARB supply, equivalent to 100 million ARB tokens, with a majority of 63% of the votes supporting this option. However, the alternative choice, “Allocate 175 million ARB,” has garnered a significant number of votes, accounting for nearly 37% of the total.
As the voting deadline approaches, it is likely that the proposal will be passed, and ARB token holders will soon know the outcome of this important decision, which will determine how the retrieved ARB tokens will be distributed as staking rewards. The community’s active engagement in the voting process reflects the decentralization and democratization of decision-making that is at the core of the DeFi ecosystem.
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