Arbitrum dao approved proposal to improve arbitration and treasury security

• arbitrum dao approves a proposal that aims at work and improving the treasury security.
• The proposal introduces the stacking and retacting of Arb-token using Starb-token.
• The measures aim to fix the poor performance of the Arb-token and to strengthen the DAO structure.

The Arbitrum Dao has taken an important step to strengthen its ecosystem by approving a proposal to increase the benefits of Arb-token and to improve governance security.

The proposal received an overwhelming consent of 91 % in over 25,000 participants and leads Arb-Staking and a new liquidity staking token, as part of a strategic initiative to fix the token sub-performance and to secure the growing treasury of the DAO.

Introduction of a new Arb staking and residual mechanism

The core of the Newly approved proposal Arbitrum (Arb)-tokens release by activating a staking mechanism.

This initiative enables Arb-token-owners to use and delegate their tokens in exchange for and delegate, a liquidity-staking token that was introduced via the TALLY protocol.

The Starb token offers an automatic composition of future rewards, residual opening options and compatibility with various decentralized financial applications (Defi) and can therefore be integrated deeper into the defi ecosystem.

The proposal does not provide for immediate distribution of the fees to the token owners, but lays the foundation for future advantages. Through the staking of Arb-token and active participation in the delegation, owners can finally receive additional sequence fees.

This mechanism is intended to promote stronger turnout within the DAO and solve the current problem of the low commitment of the Arb-token holder.

A main concern of the proposal is the sub-performance of the Arb-token in relation to the increase in value. At the moment, less than 1 % of Arb-token are actively used in the on-chain ecosystem, and the turnout has decreased since the DAO was founded.

The proposal also emphasizes the need to protect the Arbitrum treasury, which has become a more attractive goal for potential attacks on corporate management.

By implementing the staking mechanism and the promotion of active delegation, the DAO wants to create a safer governance structure.

This proactive approach is of crucial importance for securing the state treasury and ensuring the integrity of the governance process and represents an important milestone in the continuous development of the Arbitrum ecosystem.