Frission, a delegate within the Arbitrum ecosystem and a core team member at Tally, has proposed a mechanism that uses 50% of future surplus sequencer fees to reward ARB token holders who stake and actively delegate their tokens.

The proposal focuses on security concerns regarding the Arbitrum DAO’s growing treasury — which now exceeds $50 million in surplus fees. It claimed that, with only 10% of ARB actively used in governance and voter participation on the decline, the treasury may become an attractive target for potential governance attacks. Frission’s proposal aims to incentivize governance engagement, enhance the DAO’s economic security and reduce the risk of treasury attacks.

By allowing ARB holders to stake and delegate their tokens, the proposal seeks to allocate 50% of future …