Arbitrum proposal asks DAO to turn on delegate staking rewards for better governance security

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Arbitrum proposal asks DAO to turn on delegate staking rewards for better governance security
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A governance proposal made by an Arbitrum DAO delegate has pitched a token staking mechanism to address security concerns.

Frission, a delegate within the Arbitrum ecosystem and a core team member at Tally, has proposed a mechanism that uses 50% of future surplus sequencer fees to reward ARB token holders who stake and actively delegate their tokens.

By allowing ARB holders to stake and delegate their tokens, the proposal seeks to allocate 50% of future surplus sequencer fees as rewards. This system is expected to offer an estimated 7% annual reward rate for stakers, based on current prices. Importantly, the existing ethet treasury for Arbitrum would remain unchanged — with only future fees being redirected to stakers.

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