Arbitrum DAO’s proposal to enhance ARB performance and treasury security is safe.

Arbitrum DAO approves proposal targeting ARB utility and enhancing treasury security. The proposal introduces ARB tokenization and redistribution using stARB tokens. Measures aimed at minimizing the performance of the ARB token and strengthening the DAO structure.

Arbitrum DAO has taken an important step to strengthen the ecosystem by approving a proposal focused on enhancing the service of the ARB token and increasing governance security.

With over 25,000 participants receiving 91% approval, the proposal introduced ARB staking and a new liquidity token, StarB, as part of a strategic initiative to address underperformance and protect the DAO's growing treasury.

Introducing a new ARB clamping and re-establishment method

A major part of the newly approved proposal is designed to open up the Arbitram (ARB) token service.

This initiative will allow ARB tokenholders to participate and donate their tokens to staARB, a liquidity token introduced through the Tally protocol.

The stARB token offers automatic compounding of future rewards, reprocessing options, and compatibility with various decentralized finance (DeFi) applications, thus deeply integrating with the DeFi ecosystem.

While the proposal stops short of immediately distributing payouts to token holders, it sets the stage for future benefits. By incorporating ARB tokens and actively participating in delegation, holders will eventually be eligible to receive dividend payouts.

This method is expected to encourage high voter participation in The DAO, solving the problem of low participation among ARB tokens.

A key concern expressed in the proposal is the underperformance of the ARB token in terms of value accumulation. Currently, less than 1% of ARB tokens are actively used in the on-chain ecosystem, and voter participation has been declining since the establishment of the DAO.

The proposal emphasizes the importance of protecting the arbitrage treasury, which has become an increasingly attractive target for administrative attacks.

By implementing a support system and encouraging active representation, The DAO aims to create a more secure governance structure.

This proactive approach is critical to protecting the treasury and ensuring the integrity of the governance process, which is a milestone in the development of the arbitrage ecosystem.