Altcoin
Arbitrum community takes the first step towards ARB staking – details here
In a temperature check vote conducted on Snapshot, members of the Arbitrum governance community voted in favor of the allocation of 1% of ARB’s total supply as rewards toward the project’s staking program.
- Arbitrum community members have voted on an initial proposal to implement a staking program within the ecosystem.
- ARB’s demand has trailed downward in the past few days.
Members of the Arbitrum [ARB] governance community have voted in favor of a proposal to enable ARB token holders to stake their holders to earn rewards.
The proposal, which PlutusDAO submitted, called for either allocating 1.75%, 1.5% or 1% of the total ARB supply (10 billion) from the Arbitrum DAO treasury toward the staking program as rewards, distributed over a 12-month period.
According to the proposal, having a native staking model on Arbitrum would generate heightened interest in the ecosystem and its ARB token. It will also reward users who have demonstrated a long-term commitment to the ecosystem, and lay the groundwork for potential revenue-sharing models to be introduced in the future.
Information retrieved from Snapshot showed that 66% of the governance community voted to allocate 1% (100 million) of ARB’s total supply toward the staking program.
Source: Snapshot
Within the coming week, the governance body will be presented with a formalized version of the proposal, including specific implementation details, after which an on-chain DAO voting process will occur.
If the proposal receives sufficient support and is approved through the DAO vote, the implementation phase of the staking program will then commence.
ARB maintains upward trajectory
At press time, ARB exchanged hands at $1.09. According to CoinMarketCap, the token’s value climbed by almost 15% in the last week. At its current price, ARB traded at a price level last observed in August.
Among spot traders, ARB accumulation has continued to climb. Readings from the token’s Chaikin Money Flow (CMF) indicator showed increased liquidity inflow into the ARB market.
Since 23 October, ARB’s CMF has maintained an uptrend and returned a positive value of 0.33 at press time. Generally, a positive CMF value above the zero line is a sign of strength of the market. Put simply, it means that investors bought more ARB tokens than they sold since mid-October.
Key momentum indicators positioned above their respective neutral lines lent credence to the position above. At press time, ARB’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 67.10 and 68.98 respectively.
Source: ARB/USDT on TradingView
With ARB exchanging hands at multi-month highs, profit-taking activity has begun gaining momentum. This has caused the token’s network activity to experience a decline since 4 November, according to data from Santiment.
Realistic or not, here’s ARB’s market cap in BTC terms
At press time, information from the on-chain data provider showed that the daily count of addresses that traded ARB has since dropped by 55%.
Likewise, new demand for the altcoin has plummeted by 65% during the same period.
Source: Santiment
