The price of Arbitrum (ARB) has seen a significant surge after the Arbitrum decentralized autonomous organization (DAO) approved a token staking proposal. This has created a lot of excitement in the cryptocurrency community as it offers ARB token holders the potential to earn rewards.
The current price of ARB stands at $1.13, representing a 3.14% increase over the last 24 hours. The bullish momentum is likely linked to the staking proposal being approved. Judging by the chart of Arbitrum’s price movement, it has been on a strong uptrend since mid-October and this is expected to continue.
The market capitalization of ARB is now valued at $1,439,342,086, ranking it 39th in terms of market cap. Its 24-hour trading volume has also reached $358,674,886, demonstrating a surge in trading activity.
The staking proposal allows token holders to lock up their holdings in exchange for a yield that will be distributed over a 12-month period through a smart contract. The DAO approved the lowest tier of the proposal, which allocates 1% (100 million tokens) of the total 10 billion ARB supply towards staking. This can offer annualized yields ranging from 7.84% to 78.43%.
This is a unique staking mechanism as it allows stakers to earn tokens directly from the treasury, rather than from network security or revenue distribution. The DAO is now in the process of considering a subsequent proposal regarding the specifics of the staking implementation. Once this is implemented, it will provide ARB token holders the opportunity to earn additional tokens.