ChainCatcher message, the Arbitrum DAO proposes a staking proposal for the ARB token, aimed at enhancing the efficiency and security of protocol governance. This proposal will introduce ARB staking functionality, but will not allocate fees to token holders for the time being. The liquid-staked ARB tokens (stARB) implemented through the Tally protocol will support future rewards for automatic compounding, re-staking, and will be compatible with DeFi.The proposal aims to address the challenges faced by the ARB token in terms of value accumulation and governance mechanisms, while also tackling the security risks that may arise from the Arbitrum DAO treasury accumulating a large amount of ETH. A complete ARB staking implementation plan is expected to be submitted in October this year, with development costs estimated at around 200,000 USD worth of ARB tokens.

ChainCatcher news, according to the Snapshot governance page, Tally's Head of Market Operations Frisson has initiated a proposal vote in the Arbitrum community titled "Unlock Token Utility by Enabling ARB Staking," with voting ending on August 16.The proposal suggests unlocking ARB utility by enabling ARB staking and improving the governance and security of the Arbitrum protocol, but it will not temporarily open up fee distribution to token holders. By staking ARB, tokens will be delegated to users actively participating in governance, allowing token holders to capture value. The proposal also plans to implement a liquid staking ARB token (stARB) through the Tally protocol, which can automatically compound any future rewards and can be (re)staked, making it compatible with DeFi. Additionally, the proposal initiators state they will collaborate with the Arbitrum DAO to decide whether and how to fund rewards and distribute them between token holders and delegators.

ChainCatcher news, PlutusDAO has initiated a "Activate ARB Staking" proposal in the Arbitrum community, which allocates token inflation to users who lock their tokens. The Arbitrum DAO has the authority to mint 2% of the total supply of ARB annually as inflation, with the first minting date set for March 15, 2024 (the minting function can only be called once a year). It is proposed to mint 1.75% of the token supply and distribute it within a year.Since the minting function is not yet available, PlutusDAO suggests using an equivalent amount of funds from the Arbitrum DAO treasury and establishing a distribution mechanism for the locked ARB token holders. The funds used from the treasury will be replenished when the minting function becomes available on March 15, 2024.