Arbitrum is slated to distribute more than $100 million in its native ARB token to anyone willing to to lock their tokens with the protocol’s DAO.
The staking mechanism passed a governance vote early Monday morning. Supporters say the payouts will put Arbitrum’s inflated treasury to use by rewarding long-term token holders. However, detractors argued that high yield would create sell pressure, and the staking proposal could make ARB appear to be a security.
Under the proposal, users will receive greater returns the longer they keep their tokens held by Arbitrum DAO. The maximum locking length will be one year.
Arbitrum DAO’s “timelock” staking differs from proof of stake…
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