Proposal: Launch Native $ARB Staking at ≈ 8% APY

Proposals
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Proposal: Expand the Arbitrum protocol with a native, protocol-managed staking program for $ARB, offering a fixed 8 % annual yield to participants who lock their tokens for governance participation and network security.

Why $ARB Staking?

  • Unlock ARB Utility: Native staking enables token holders to actively engage in governance and security, paired with a liquid-staking derivative (stARB) for auto-compounding via Tally Protocol.

  • Community Mandate: An Arbitrum DAO vote saw over 25,000 participants with 91 % approval for integrating staking, underscoring strong demand.

  • Competitive Yield: With native OP staking rewards at ∼0 % pending fee activation, an 8 % APY positions Arbitrum as the leading L2 for predictable, on-chain yields.

  • Robust Ecosystem: Arbitrum supports $2.6 B TVL across 795 protocols, demonstrating a deep liquidity base ready to participate in staking incentives.

Core Advantages

  • Incentivized Holders: A fixed, attractive yield encourages long-term retention, reducing sell-side pressure.

  • Supply Lock-Up: Staked $ARB is removed from the liquid supply, exerting upward price support.

  • Governance Engagement: Stakers gain voting rights on risk parameters and protocol upgrades, strengthening decentralized governance.

  • Competitive Positioning: A dedicated staking module differentiates Arbitrum among Layer 2 solutions by directly rewarding ecosystem contributors.

  • Institutional Appeal: Native on-chain yields align Arbitrum with institutional DeFi funds seeking regulated, transparent staking opportunities.

Conclusion

  • Strengthen Security & Decentralization: Foster active stakeholder participation to bolster network resilience.

  • Enhance Token Utility & Demand: Transform $ARB into a yield-bearing asset, driving sustainable demand.

  • Support Sustainable TVL Growth: Channel additional liquidity and protocol engagement through staking incentives.

  • Cement Arbitrum’s Leadership: Pioneering native staking at competitive rates showcases Arbitrum’s commitment to DeFi innovation and excellence.

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Hi,

rather than just slapping a chatgpt output into the forum and not following the forum guidelines you should have tried to use the search function.
There is already a proposal that has been voted on and is in testing (if i remember correct).

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You are right, it’s low quality; however, I’m a bit curious to know how they imagine the yield being generated. @Masha care to elaborate?

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