The Arbitrum Foundation, the team responsible for the layer two network Arbitrum, a scaling solution for Ethereum, has directed significant funds towards developing the gaming industry within its ecosystem.
The project involves allocating 225 million Arbitrum (ARB) tokens, approximately worth $215 million, for distribution over three years through the new Gaming Catalyst Program (GCP).
The program aims to rapidly increase the recognition and use of Arbitrum Orbit and Stylus among game developers and players, fostering growth and engagement within the gaming community.
Initially proposed in March, the proposal was approved on June 7, receiving over 75% of the votes. It called for the decentralized autonomous organization Arbitrum (DAO) to approve the allocation of 200 million ARB over two years to stimulate game development on the blockchain.
Notable supporters of the project included L2Beat, Wintermute, and Treasure DAO, a gaming-focused organization. Opponents included Blockworks Research and Camelot DAO.
In response on platform X, Treasure DAO supported the project:
A significant portion of the fund is allocated for publishers, with new and early-stage developers eligible for grants up to 500,000 ARB (approximately $483,000 at current prices).
More established developers can apply for investments that include an equity component, such as tokens, shares, or similar mechanisms. The remaining funds will be distributed between infrastructure-related rewards and operational expenses, supporting ecosystem growth and development.
A dedicated team will handle the day-to-day activities of the GCP. A five-member board, including experts in gaming, venture capital, data analysis, and DAO management, will provide strategic oversight and guidance.
This governance structure ensures effective fund allocation to achieve the DAO's goals while encouraging innovation and accountability. The board also has veto power over investment decisions and team appointments, ensuring the program's successful implementation and adherence to its principles.
The GCP has established strict financial frameworks, capping its operational expenses at $25 million. Any expenses exceeding this limit require explicit approval from the DAO.
Also in March, the Arbitrum DAO withdrew a proposal to fund legal defense expenses for Tornado Cash developers Roman Storm and Alexey Pertsev.
