Stargate DAO to use ARB token allocation for liquidity incentives

Stargate DAO has voted on how to spend its 1.67M ARB token allocation. 70% of the airdrop will be used for liquidity mining on Arbitrum from a new LPStakingTime contract while the remaining 30% has been earmarked for partner integrations.

On Saturday morning, a proposal signaling support for allocating Stargate DAO’s approximately 1.67 million ARB to liquidity mining and partner integrations was passed by Stargate DAO. The voting round received a whopping 369,729 votes, with 94.67% of veSTG tokens backing the idea.

Following the approval, 1,171,083 $ARB will be used to boost liquidity on Arbitrum and 502,930 $ARB will be used to encourage projects building on the Arbitrum blockchain. According to the proposal, the move will reduce the emissions of $STG on Arbitrum pools for as long as $ARB rewards are still available.

This will also not only align Stargate with the ecosystem but also effectively distribute these tokens to a wide range of users and members of the community, promoting governance decentralization.

For the time being, the protocol will set emissions on the current LPStaking contract to 0, effectively turning off emissions. The LPStaking contract will be re-enabled at a later date after the $ARB emissions run out.

The decision trails Balancer DAO’s move to allocate a portion of its own ARB airdrop to LP incentives and protocol-owned liquidity. As reported by Masternode Buzz, Balancer DAO reached a decision last week to channel 1 million from its 3 million ARB to LP incentives, while using the remaining to deploy protocol-owned liquidity in an ARB/BAL/AURA 33/33/33 pool.