The ARB Foundation, the organization supporting the Ethereum rollup-based Layer 2 network Arbitrum, has successfully passed a proposal to distribute hundreds of millions of dollars.
The ARB Foundation, the organization supporting the Ethereum rollup-based Layer 2 network Arbitrum, has successfully passed a proposal to distribute hundreds of millions of dollars to bolster gaming projects on its platform over the next three years. This strategic initiative aims to enhance awareness and adoption of Arbitrum’s ecosystem among game developers and players.
The approved proposal allocates 225 million ARB tokens, equivalent to approximately $215 million at current market prices, to the newly established Gaming Catalyst Program (GCP). This program is designed to "immediately expand awareness and adoption of Arbitrum/Orbit/Stylus by builders and players in the Gaming community," according to the proposal’s details.
Originally introduced in March, the proposal received overwhelming support, passing on Friday with over 75% of votes in favor. Key proponents of the proposal included influential organizations such as L2Beat, Wintermute, and the gaming-centric Treasure DAO. Conversely, Blockworks Research and Camelot DAO were among the notable dissenters.
Treasure DAO celebrated the proposal's approval on X (formerly Twitter), 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 bulk of the funds are earmarked for game publishers, with new and early-stage developers eligible to apply for grants up to 500,000 ARB (approximately $483,000 at current prices). More established developers will need to seek investments that include a value share component, such as tokens, equity, or similar financial structures. Additionally, a portion of the funds will be dedicated to infrastructure-related bounties and operational expenses.
The day-to-day operations of the GCP will be managed by a dedicated team. However, oversight will be provided by a council of five individuals with expertise in gaming, venture capital, analytics, reporting, and DAO governance. This council, elected by the DAO, possesses the authority to veto investment decisions and team member appointments, ensuring robust governance and accountability. The GCP team’s operational budget is capped at $25 million, with any expenditures beyond this limit requiring DAO approval.
Despite the positive news, the price of ARB experienced a decline, falling about 1.76% in the past 24 hours and 15.49% in the past 7 days as part of a wider market selloff.
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