Arbitrum receives 2.5 million ARB funding request from Wormhole foundation

• Wormhole Foundation submitted a funding proposal to the Arbitrum community, requesting 2.5 million ARB tokens.
• The messaging protocol has proposed 8% annualized returns for users.
• Wormhole’s objective is to attract 100 million USDC from other chains to Arbitrum.

Wormhole, a crypto and web3 messaging protocol, has submitted a proposal to encourage users to mint native USDC on the Arbitrum chain. The goal is to attract 100 million USDC and migrate it from other chains to Arbitrum.

The protocol has requested a maximum funding of 2.5 million ARB tokens and offers 8% annualized returns to users. This passive income opportunity is likely to attract investors.

Also read: Tether increased its secured loans in Q2 despite commitment to reduce lending

Wormhole requests 2.5 million ARB funding for this passive income opportunity

Wormhole’s latest proposal to the Arbitrum community offers ARB holders the opportunity to earn 8% annualized returns for a three-month timeframe in exchange for minting USDC using Circle’s Cross-Chain Transfer Protocol (CCTP).

The passive income opportunity could offer a reward of 2% total return over a three-month timeframe. The messaging protocol requires 2.5 million ARB tokens for the mint of 100 million USDC tokens.

✕

Wormhole proposal for ARB community of holders

Wormhole will execute the grand that will be shared among its contributors, including xLabs, Jump Crypto, and 19 Guardians.

How ARB holders can earn rewards from Wormhole’s program

The reward period is 12 weeks, users will be free to move the USDC that they minted, but only the tokens held in the bridged address will accrue rewards. At the end of the reward period, unaccrued ARB rewards will be returned to the Arbitrum DAO Treasury address.

Users who do not claim their ARB tokens within a 12-week window will have an opportunity to claim them within 365 days. Post this, the unused portion will be returned to the Arbitrum DAO Treasury address.

It's important to note that this is a proposal and will need to go through a voting process before it is implemented. No investments are being received at the moment.

At the time of writing, ARB price is $0.8177, yielding 4.15% gains for holders over the past week.