Stargate Members Discuss Plans for $2M Worth of Arbitrum Tokens on Community Call
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Elizabeth Napolitano is a news reporter at CoinDesk.
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Members of the decentralized autonomous organization (DAO) managing decentralized exchange (DEX) Stargate Finance are debating what to do with the expected allocation of 1.6 million arbitrum (ARB) tokens worth just under $2 million.
The tokens have not yet arrived, said MaxPower, an employee of LayerZero Labs, which manages the protocol upon which Stargate is built and who was the co-host of a community call with roughly 400 attending, including CoinDesk, on Wednesday. Once they do, however, Stargate’s governing DAO will have to decide whether to hold, sell, deploy or delegate the trove of coins.
Stargate has $364 million in total value locked (TVL) and nearly 22% of it comes from the Arbitrum platform, according to DeFiLlama. “Arbitrage is a volume hub for Stargate and a lot of our volume comes either to or from Arbitrum,” said MaxPower on the call.
Some in attendance suggested the DAO should distribute the ARB tokens to users or deploy them as a liquidity incentive. Meanwhile, other governance token holders have suggested delegating the ARB coins so Stargate can participate in Arbitrum governance. This would “help shape the future of that chain,” MaxPower said.
“There’s a clear product market fit, so supporting that ecosystem is always of interest,” MaxPower added.
Edited by Stephen Alpher.
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Elizabeth Napolitano is a news reporter at CoinDesk.
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Elizabeth Napolitano is a news reporter at CoinDesk.
