ARB Staking: Unlock ARB Utility and Align Governance

@Frisson is the proposal at the top the canonical version now? I want to give this another check and don’t want to have you guys answer the same questions again but also, there’s like 30 pages of comments…

What do you mean by canonical? It’s the version that passed governance, so I don’t think it makes sense to edit the text. We are keeping the DAO updated on progress via this thread and also via the GRC.

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Tally is running a closed beta to test the ARB Staking governance contracts and UI. The ARB Staking closed beta test tokens have no monetary value.

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Hi,
how to participate in beta testing?
Where to get ARBTEST tokens?

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If you fill out the closed beta registration form, we’ll send you some test tokens https://x.com/tallyxyz/status/1889741660591972522

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Hi @Frisson, is there any update about the testing and the next steps?

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Hey Frisson, what’s the status and next steps with testing staking and moving forward?

Do you still need people to help with beta testing? I’m happy to help.

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The closed beta for ARB Staking governance contracts is complete. We received quality feedback from a variety of Arbitrum delegates and community members. Thank you for your participation!

The ARB Staking governance contracts and UI are ready to deploy. As a next step, we are meeting with key stakeholders to ensure technical alignment on our implementation.

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Hi Frisson, has a yield and lock period been set for this?

So, no one cares about this proposal now?

Hi everyone, providing an update here -

Tally has completed development of ARB Staking smart contracts and UI. The staking system is built to the spec of the ARB Staking proposal that passed last year. Here are some helpful resources to review -

Our understanding is that there is not currently consensus in the DAO about funding staking rewards. When the DAO is ready to re-engage on a rewards framework, we will participate actively in that process. The contracts have been architected to accommodate the addition of a rewards mechanism with minimal further engineering, so an approved funding decision can be implemented relatively quickly.

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Hi Cliffton and Tally Team,

Huge thanks for updates! and thanks for the completing the ARB Staking smart contracts, UI, and audits—it’s a tremendous effort and solid progress toward unlocking ARB’s utility.

That said, it’s honestly disheartening that, despite the DAO approving the ARB Staking proposal last year, there’s still no consensus on a rewards source. This risks rendering all those dev hours, audits, and governance work essentially meaningless—leaving us with a functional staking system lacking the crucial component to activate it.

To move forward, here are some viable funding ideas:

  1. Sequencer surplus and MEV fees
    Per the original proposal, future Arbitrum sequencer and MEV surplus could power staking rewards for active delegators .

  2. Validator fees or future rollup-based revenues
    As components like BoLD or Time Boost go live, transaction or validation fees could be redirected into the staking rewards pool.

  3. Dedicated transfers from the Arbitrum Treasury
    With healthy reserves, DAO could approve allocations—perhaps 1–2% of treasury ARB or stablecoins/ETH—specifically to seed staking rewards.

  4. Ecosystem partnerships & project co-funding
    Encourage DeFi or app projects on Arbitrum to contribute rewards—creating dual incentives: they gain security through stake, users earn, and DAO scales sustainably.


:bell: Call to Action: Build Consensus on Rewards
This requires community alignment. Here’s a proposed process:

  • Launch a Snapshot vote or Working Group focused solely on staking rewards funding sources.
  • Encourage open public debate to compare pros/cons of each funding path.
  • Set a clear timeline (e.g., decide on funding within 90 days; launch initial staking pool within 180 days).

Let’s not let ARB Staking become a high-potential system stuck in limbo. Together—with Tally, DAO delegates, and the wider community—we can decide on a sustainable framework that “feeds” staking and truly unlocks ARB’s on-chain utility and tool-like nature.

Thanks again for your work. Let’s push this over the finish line! :flexed_biceps:

Hey @crypfuto appreciate the comments - the DAO did commission a Rewards Source working group through this proposal to do extensive evaluation on various potential rewards sources, with the first 3 ideas you brought up being areas of research. You can find their final recommendations here, and the final recommendations of the Delegation WG here as well.

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I wanted to check if there have been any recent updates or announcements regarding the utility of the ARB token beyond just a governance token. Has there been any progress or clarification from the team on its intended use or future role within the ecosystem?

Appreciate any insights—thank you!

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