The team behind the Ethereum layer-2 network Arbitrum, known as the Arbitrum Foundation, has dedicated significant resources to advancing the gaming industry within its ecosystem.
A total of 225 million Arbitrum (ARB) tokens, valued at around $215 million, have been allocated for distribution over three years through the newly established Gaming Catalyst Program (GCP). The primary goal of the program is to boost awareness and usage of Arbitrum, Orbit, and Stylus among game developers and players, fostering growth and engagement within the gaming community.
Initially proposed in March, the plan was officially approved on June 7 with over 75% of votes in favor. The program suggested that the Arbitrum decentralized autonomous organization (DAO) set aside 200 million ARB over two years to incentivize game development on the blockchain.
Notable supporters of the proposal included L2Beat, Wintermute, and Treasure DAO, a gaming-focused organization. On the other hand, Blockworks Research and Camelot DAO were among those who disagreed with the proposal.
Treasure DAO enthusiastically backed the proposal, stating, “Arbitrum is the ultimate gaming destination – let’s create some magic together.”
Funding and governance arrangements have been carefully structured. A significant portion of the fund is reserved for publishers, with grants of up to 500,000 ARB (roughly $483,000 at current prices) available to new and early-stage developers. Established developers can seek investments that include a value share component like tokens, equity, or similar arrangements. The remaining funds will be allocated towards infrastructure-related bounties and operational expenses to support the ecosystem’s progression.
The GCP will be managed by a dedicated team overseeing daily operations. Additionally, 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 that funds are utilized effectively to fulfill the DAO’s objectives while promoting innovation and accountability. The council also holds veto power over investment decisions and team appointments to ensure the program’s success and adherence to its guidelines.
The GCP has established a stringent financial framework, limiting operational expenses to $25 million. Any expenditure exceeding this cap must receive explicit approval from the DAO.
In another development, the Arbitrum DAO decided to withdraw a proposal to fund the legal defense expenses of Tornado Cash’s developers, Roman Storm and Alexey Pertsev, in March.
Magazine: Web3 Gamer: Developers leave after Torque Drift 2 introduces crypto, facing challenges with MetaFighter.