The Arbitrum ecosystem is experiencing rapid growth in the cryptocurrency sector, yet ARB tokens are not achieving the expected value. Presently, the primary demand for ARB stems from governance power, but various supply-side factors, including lockups and treasury expenditures, complicate the situation. This scenario necessitates a more cohesive and robust approach to elevate the value of ARB tokens.
Can Governance Power Be Improved?
Governance power is fundamental to a protocol. However, only a mere 10% of ARB token holders are actively involved in governance, leaving the Arbitrum DAO susceptible to risks. For instance, the $16 million worth of ETH in the DAO treasury is a potential target for malicious attacks. Thus, enhancing governance power and fortifying defense mechanisms is imperative.
To safeguard and enhance the Arbitrum ecosystem, a proposal for ARB staking is being put forward. This system will allow ARB holders to earn rewards by engaging in active governance. Not only does this amplify governance power, but it also makes ARB stakable and DeFi-compatible. By utilizing the stARB token, users can seamlessly accumulate rewards while maintaining governance participation.
What Steps Are Included in the Roadmap?
A detailed roadmap has been devised for the deployment of this staking system. Initiated in June, the process will progress with significant milestones in August and September. By October, full implementation of ARB staking is slated. Throughout this timeline, $200,000 worth of ARB funds will be dedicated to the development and auditing of ARB staking smart contracts, integrating the DAO’s governance into the new system.
Key Takeaways for ARB Token Holders
Here are some valuable inferences for users:
- Active participation in governance can mitigate risks and enhance security.
- Staking ARB tokens allows for earning rewards while contributing to the ecosystem.
- The introduction of stARB tokens provides a seamless way to earn and engage in governance.
- A well-planned roadmap ensures systematic development and implementation of the staking system.
Implementing ARB staking emerges as a pivotal move to secure and sustain the Arbitrum ecosystem. This system will not only bolster the value of ARB tokens but also restore governance power to the Arbitrum DAO.
