According to Cointelegraph: The Arbitrum Foundation, responsible for Arbitrum's Ethereum-based Layer 2 federated network, has approved an ambitious proposal to allocate $215 million worth of ARB tokens to fuel gaming innovation in its ecosystem. Originally introduced in March, the proposal received overwhelming support and was officially approved on June 7, receiving more than 75% of the vote.
Proposal approval:
- Proposal Introduction: The Gaming Catalyst Program (GCP), originally proposed in March, aims to stimulate gaming innovation on Arbitrum.
- Voting results: The proposal was approved on June 7 with a majority of more than 75% of the votes.
Financial distribution:
- 225 million ARB tokens: A total of 225 million ARB tokens, valued at approximately $215 million, will be distributed over three years to support game development.
- GCP Goal: The Gaming Catalyst program aims to increase awareness and use of Arbitrum, Orbit and Stylus among game developers and players.
Support and opposition
Supporters of the proposal:
- Supporters: L2Beat, Wintermute and Treasure DAO, an organization specializing in games, have actively supported this proposal.
- Opposition: Blockworks Research and Camelot DAO protested, but were rejected.
Community response:
- Treasure DAO: In response to the proposal's approval, Treasure DAO celebrated on social media platform X, declaring: "Arbitrum is the home of games, let's make magic."
Distribution of funds:
- Grants and Investments: Early-stage developers can receive up to 500,000 ARB tokens (approximately $483,000), while established developers can apply for larger investments that include tokens, equity, or similar mechanisms.
- Infrastructure and operating expenses: The remaining funds will be used to pay infrastructure-related fees and operating expenses.
Management:
- Dedicated Team: A dedicated team will handle the day-to-day operations of GCP.
- Board Oversight: A five-member board, including experts in gaming, venture capital, data analytics, and DAO governance, will provide strategic oversight and guidance.
- Financial Basis: Program operating expenses are capped at US$25 million, with any expenditure above this limit requiring explicit DAO approval.
Framework program
Strategic imperatives:
- Encouraging innovation: GCP is designed to encourage innovation and accountability in the gaming sector of the Arbitrum ecosystem.
- Compliance with guidelines: The Board has veto power over investment decisions and team assignments to ensure that the program meets its objectives.
Financial responsibility:
- Cost containment: Operating expenses are capped at US$25 million to ensure financial discipline and efficient resource allocation.
- DAO Approval: Expenditures exceeding the $25 million limit must receive DAO approval, which adds a layer of governance and accountability.
Conclusion
The approval and implementation of the Gaming Catalyst Program (GCP) represents a significant commitment by the Arbitrum Foundation to advance gaming innovation on its platform. With a significant $215 million ARB token allocation and a robust governance structure, GCP is committed to driving growth and engagement within the gaming community.
