TechFlow news: The Arbitrum DAO has approved a governance proposal that will allow holders of its ARB tokens to stake their holdings and receive yield in the form of tokens. This will be funded by the Arbitrum reserve and distributed over 12 months via smart contracts.
An initial tiered system was proposed for token distribution, offering options to allocate 1% (100 million tokens), 1.5% (150 million tokens), or 1.75% (175 million tokens) of the total 10 billion ARB supply as staking rewards.
A majority of DAO members, over 66%, voted in favor of allocating the lowest tier—1% (100 million tokens)—to staking.
The annual percentage yield (APY) is estimated to range between 7.84% and 78.43%, depending on the percentage of ARB supply staked.
Notably, this arrangement will enable stakers to earn token rewards from the reserve fund, rather than through other mechanisms where tokens are staked to secure network safety or distribute revenue.
