### $215 Million Allocation by Arbitrum: Indicator of Decline?

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The governance DAO of Arbitrum has greenlit a proposal from the Arbitrum Foundation to allocate 225 million ARB, valued at around $215 million, to boost gaming projects on its network.

Arbitrum's Ethereum-based layer-2 network DAO will distribute hundreds of millions of dollars over the next three years to support gaming projects through the Gaming Catalyst Program (GCP). This initiative aims to increase the awareness and adoption of Arbitrum, Orbit, and Stylus by allocating 225 million ARB, worth approximately $215 million, over a three-year period.

First announced in March, the proposal received official approval on Friday, with over 75% of votes in favor. Key supporters included L2Beat, Wintermute, and the gaming-centric Treasure DAO. However, Blockworks Research and Camelot DAO opposed the initiative.

In response, Treasure DAO tweeted: “Arbitrum is the home of gaming; this includes all games, game chains, and all builders in its orbit. Let's create some magic.”

Most of the funding will go to publishers. New and early-stage developers can apply for grants up to 500,000 ARB (about $483,000), while more established developers must seek investments that include value-sharing components like tokens or equity. The remaining funds will support infrastructure-related incentives and operational costs.

The day-to-day operations will be managed by a dedicated GCP team, overseen by a council of five individuals with expertise in gaming, startups, analysis/reporting, and DAO management. This council, selected by the GCP, has the authority to veto investment decisions and team appointments. The GCP team's operational budget is capped at $25 million, with any additional expenses requiring DAO approval.