The team at the Arbitrum Foundation, creators of the Ethereum rollup-based layer-2 network Arbitrum, has dedicated significant resources to promote the gaming industry within its ecosystem.
To achieve this goal, they have allocated 225 million Arbitrum (ARB) tokens, valued at around $215 million, for distribution over three years through the newly established Gaming Catalyst Program (GCP). The primary objective of this program is to enhance the visibility and usage of Arbitrum, Orbit, and Stylus among game developers and players, fostering growth and engagement within the gaming community.
Initially introduced in March, the proposal was officially approved on June 7, with more than 75% of votes in favor. The program had initially suggested the allocation of 200 million ARB over two years to incentivize game development on the blockchain by the Arbitrum decentralized autonomous organization (DAO).
Among the notable supporters of the proposal were L2Beat, Wintermute, and Treasure DAO, a gaming-focused organization, while Blockworks Research and Camelot DAO were among the dissenting voices.
Treasure DAO celebrated the approval of the proposal, stating, “Arbitrum is the hub of gaming – let’s create some magic.”
The funding and governance structure of the program include grants of up to 500,000 ARB (approximately $483,000) for new and early-stage developers, along with opportunities for more established developers to receive investments that include tokens, equity, or similar arrangements. The remaining funds will be utilized for infrastructure-related bounties and operational expenses to support the growth of the ecosystem.
A dedicated team will manage the daily operations of the GCP, while a five-member council consisting of gaming, venture capital, data analysis, and DAO governance experts will provide strategic oversight and guidance. This governance structure ensures effective allocation of funds to achieve the DAO’s goals, while promoting innovation and accountability. The council also holds veto power over investment decisions and team appointments, ensuring the successful implementation of the program and adherence to its guidelines.
The GCP has implemented a strict financial framework, capping operational expenses at $25 million. Any expenditure exceeding this limit must receive explicit approval from the DAO.
Additionally, in March, the Arbitrum DAO withdrew a proposal to fund the legal defense costs of Tornado Cash’s developers, Roman Storm and Alexey Pertsev.
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