In a significant move, the Arbitrum Foundation’s DAO has officially approved the allocation of a substantial $215 million fund to bolster the gaming ecosystem on the Ethereum rollup-based Layer 2 network. The initiative, spearheaded by the Arbitrum Foundation, aims to propel the growth and development of gaming projects within its ecosystem over the next three years.
The heart of this endeavor lies in the creation of the Gaming Catalyst Program (GCP), which will receive a staggering 225 million ARB tokens, equivalent to approximately $215 million at current market prices. This program is strategically designed to ignite rapid expansion in awareness and adoption of Arbitrum, Orbit, and Stylus among gaming builders and enthusiasts alike.
Having been initially introduced in March, the proposal garnered overwhelming support, ultimately passing with over 75% of the DAO votes in favor. Notable supporters include influential entities such as L2Beat, Wintermute, and the gaming-focused Treasure DAO, underscoring the industry’s collective enthusiasm for the initiative. However, there were opposing voices, with Blockworks Research and Camelot DAO among those who voted against the proposal.
Treasure DAO expressed its excitement for the future, stating, “Arbitrum is the home of gaming – this includes all of the games, the gaming chains, and all of the builders within its orbit. Let’s make some magic happen.”
The allocation of funds within the GCP is carefully structured, with a significant portion earmarked for publishers. New and early-stage developers will have the opportunity to apply for grants, with a maximum value of 500,000 ARB (roughly $483,000 at current rates), while more established developers will have avenues to secure investments through tokens, equity, or similar means.
Additionally, a portion of the funds will be dedicated to infrastructure-related bounties and operational expenses. To ensure efficient management and oversight, day-to-day operations will be entrusted to a dedicated GCP team. Meanwhile, a council comprising five individuals with extensive expertise in gaming, venture capital, analytics/reporting, and DAO governance will oversee investment decisions and team appointments, wielding the authority to veto as needed.
Moreover, stringent financial controls are in place, with the GCP team’s operational budget capped at $25 million. Any expenditures exceeding this limit will necessitate approval from the DAO, ensuring responsible stewardship of the allocated funds.
Following the conclusion of the voting period, the price of Arbitrum’s token experienced a slight dip, falling approximately 12% from its peak value of $1.10 to around $0.97. Despite this, the overall sentiment remains optimistic, with stakeholders eagerly anticipating the transformative impact of the Gaming Catalyst Program on the Arbitrum ecosystem.
