$215 million move from Arbitrum: Could it be a decline signal?

Arbitrum's governance DAO has approved the Arbitrum

Foundation's proposal to allocate 225 million ARB, currently worth approximately $215 million, to support gaming projects on the network.

The #DAO of Ethereum-based layer-2 network Arbitrum will fulfill its wish to distribute hundreds of millions of dollars to support gaming projects on the network over the next three years. The proposal will allocate 225 million ARB, worth approximately $215 million at current prices, over three years to the Gaming Catalyst Program (GCP), which is designed to expand awareness and adoption of Arbitrum/Orbit/Stylus.

The proposal, first announced in March, was officially adopted on Friday with the support of more than 75 percent of the votes. Organizations that significantly supported the proposal included L2Beat, Wintermute, and the gaming-focused Treasure DAO, while Blockworks Research and Camelot DAO were also among those who voted against it.

In response to the proposal, Treasure #DAO wrote about X: “Arbitrum is the home of the game; this includes all games, game chains, and all builders in its orbit. Let's do some magic.”

The bulk of the funding is allocated to publishers; New and early-stage developers have the opportunity to apply for grants worth a maximum of ARB 500,000 (about $483,000 at current prices), while more established developers must apply for investments with a value-sharing component. Whether tokens, equity or similar instruments, the remainder of the funds will be allocated to infrastructure-related bonuses and operational expenses.

Day-to-day operations will be handled by a dedicated GCP team, but the program will be overseen by a council of “5 individuals with deep gaming experience, startup experience, analysis/reporting, and/or #DAO management skills” selected by GCP. The DAO has the capacity to veto investment decisions and team member appointments. The GCP team's budget limit was set at $25 million for operational expenses; DAO approval is required for excess expenditures.
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