A noteworthy proposal that, if accepted, would enable ARB holders to lock in their tokens in exchange for a payout paid out in tokens is currently up for vote on the Arbitrum DAO. The outcome of the decision, which is currently up for community voting, is set for November 6.

The plan, which was first presented by PlutusDAO in September, is that the DAO finance the staking yield using Arbitrum treasury funds and distribute it to stakers over a 12-month period via a smart contract.

Users have the choice to accept or reject the governance proposal, which is currently up for vote, or to select how to use the 3.5 billion ARB tokens ($3.4 billion) in treasury cash. It describes a system of tiered token allocation, implying that The DAO’s treasury will set aside 1% (100 million tokens), 1.5% (150 million), and 1.75% (175 million tokens) of the 10 billion ARB total supply for staking rewards.

In order to incentivize stakeholders to stay onto their investments and match token holders’ commitment with the ecosystem’s long-term goals, the suggested staking model also incorporates penalties for early withdrawal.

Community endorsements and voting patterns
The introduction of staking is currently supported by a clear majority of votes, suggesting a high chance that the plan will be adopted in the next few days.

Of this majority, 53% of voters support using 175 million ARB (or 1.75% of the total supply) to fund the staking functionality. These tokens would come from the 3.5 billion tokens held by the Arbitrum DAO treasury.

On the other hand, 18% of voters propose allocating 125 million tokens, while 21.3% support staking with 150 million tokens, or 1.5% of the total supply million ARB tokens for staking, or 1.25 percent of the total supply.

In the meantime, the staking proposal has only been rejected by 6.2% of Arbitrum DAO voters.