Ethereum

Arbitrum

Rewards

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/frission-proposes-arb-rewards-mechanism" data-wpel-link="internal">Frission Proposes ARB Rewards Mechanism</a><br></p>
<p style="text-align: justify">Frission, a delegate within the Arbitrum ecosystem and a core team member of Tally, has put forward a mechanism to reward ARB <a href="https://en.bitcoinhaber.net/meme-coin-market-soars-beyond-expectations" data-wpel-link="internal">token</a> holders using 50% of <a href="https://newslinker.co" target="_blank" rel="noopener nofollow" data-wpel-link="exclude">future</a> transaction fees. The proposed system is designed to benefit those who stake and actively delegate their assets, addressing security concerns as Arbitrum DAO’s treasury grows beyond $50 million.</p> 
<h2 id="what-is-arbitrum-facing">What Is Arbitrum Facing?</h2> 
<p style="text-align: justify">With only 10% of ARB tokens currently engaged in governance and voter turnout on the decline, Frission suggests that the treasury is at risk of governance attacks. The proposal aims to boost participation in governance, strengthen the DAO’s economic security, and mitigate the likelihood of attacks on the treasury.</p> 
<p style="text-align: justify">The plan involves allowing ARB holders to stake and delegate their assets, with 50% of future sequencer fees allocated as rewards. This system is anticipated to yield an approximate 7% annual reward rate for stakers at current <a href="https://finance.coin-turk.com/" rel="nofollow noopener" target="_blank" data-wpel-link="exclude">prices</a>. Importantly, Arbitrum’s existing Ethereum treasury will remain intact, and only future transaction fees are slated for allocation to stakers.</p> 
<h2 id="key-elements-of-the-proposal">Key Elements of the Proposal</h2> 
<p style="text-align: justify">To ensure liquidity, the proposal includes Tally’s liquid staking token system, which will allow staked assets to remain liquid and participate in governance simultaneously. This mechanism aims to balance the liquidity of assets and their involvement in governance activities.</p> 
<h2 id="usable-inferences-for-investors">Usable Inferences for Investors</h2> 
<p style="text-align: justify"> – Stakers can expect around a 7% annual reward rate based on current prices.<br> – The existing Ethereum treasury remains unaffected, reducing risks.<br> – Liquid staking tokens will maintain asset liquidity while supporting governance. </p> 
<h2 id="conclusion">Conclusion</h2> 
<p style="text-align: justify">The preliminary control vote for this proposal is scheduled to occur next month on Snapshot. If it passes, the development of smart contracts will commence, with a final on-chain vote potentially taking place in September. A previous proposal for using Arbitrum treasury funds for staking yields did not advance beyond initial feedback. The upcoming vote will determine the next steps for ARB token holders and the Arbitrum ecosystem.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/frission-proposes-arb-rewards-mechanism" data-wpel-link="internal">Frission Proposes ARB Rewards Mechanism</a></h5>

Frission Proposes ARB Rewards Mechanism

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