Arbitrum core management staff proposes to open ARB pledge reward
According to the Arbitrum Governance Forum, Frission, a core team member of Tally, has proposed using 50% of future remaining sorter fees to reward ARB token holders who pledge and actively entrust their tokens. The proposal focuses on security concerns for Arbitrum DAO's growing pool of funds. Based on current prices, the system is expected to provide an annual return of around 7% for pledgers.
Since only 10 per cent of ARBs are actively used for governance and voter participation is declining, the fund pool could be targeted for potential governance attacks, the proposal says. Frission's proposal aims to incentivise governance participation, enhance the economic security of DAOs and reduce the risk of attacks on the fund pool.