The Grand Proxy carries the Nagal staff, as a symbol of the authority granted to him by the Grand Nagus.
In 2373, Neelix masqueraded as the Grand Proxy in order to convince Arridor and Kol to relinquish their hold on Takar II, where they have been exploiting the Takarian populace using the myth of the Great Sages. However, the plan fell apart when Arridor and Kol tried to kill the Grand Proxy, in an attempt to continue their operations without interference from the Ferengi Alliance. Neelix's true identity as a member of the USS Voyager crew was subsequently exposed. (VOY:"False Profits")