Plutus DAO has put forth a proposal for a $ARB locking mechanism aimed at dispersing token inflation among token holders.
The Arbitrum DAO holds the authority to generate a maximum of 2% of the total ARB supply as annual inflation and employ it in any manner they deem suitable. This feature is already embedded within the ARB token contract. The minting function can only be executed once annually, with the inaugural opportunity scheduled for March 15th, 2024.
Plutus has suggested minting 1.75% of the token supply and distributing it to $ARB stakers as a native utility to reward their token ownership.
The rationale behind this proposal is to benefit $ARB holders who lock their tokens, providing them with a native ARB yield and setting ARB apart from other Layer 2 tokens. Furthermore, this proposal serves as a precedent and initial step toward future actions, including the distribution of DAO revenue where applicable.
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Layer 2
Arbitrum
