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

**URL:** <https://forum.arbitrum.foundation/t/proposal-launch-native-arb-staking-at-8-apy/29399>\
**Category:** Archived Proposals\
**Created:** [June 5, 2025, 12:11pm UTC](https://forum.arbitrum.foundation/t/proposal-launch-native-arb-staking-at-8-apy/29399 "2025-06-05T12:11:57Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Masha](https://avatars.discourse-cdn.com/v4/letter/m/57b2e6/32.png) [@Masha](https://forum.arbitrum.foundation/u/Masha)\
**Post date:** [June 5, 2025, 12:11pm UTC](https://forum.arbitrum.foundation/t/proposal-launch-native-arb-staking-at-8-apy/29399/1 "2025-06-05T12:11:57Z")

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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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**Author:** ![EzR3aL](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/ezr3al/32/14760_2.png) [@EzR3aL](https://forum.arbitrum.foundation/u/EzR3aL)\
**Post date:** [June 5, 2025, 12:51pm UTC](https://forum.arbitrum.foundation/t/proposal-launch-native-arb-staking-at-8-apy/29399/2 "2025-06-05T12:51:51Z")

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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).

> [@ARB Staking: Unlock ARB Utility and Align Governance](https://forum.arbitrum.foundation/t/arb-staking-unlock-arb-utility-and-align-governance/25084):
>
> Constitutional / Non-Constitutional Constitutional Abstract We propose to unlock ARB utility and improve the governance and security of the Arbitrum protocol by implementing ARB staking, without yet turning on fee distribution to token holders. Through ARB staking, token holders who delegate to active governance participants will be able to capture value. The proposal will also implement a liquid staked ARB token (stARB) via the Tally Protocol that enables any future rewards to auto-compound, i…

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**Author:** ![EmmanuelO](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/emmanuelo/32/14835_2.png) [@EmmanuelO](https://forum.arbitrum.foundation/u/EmmanuelO)\
**Post date:** [June 6, 2025, 7:06am UTC](https://forum.arbitrum.foundation/t/proposal-launch-native-arb-staking-at-8-apy/29399/3 "2025-06-06T07:06:21Z")

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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?