The Arbitrum Foundation launched a $215M fund to promote gaming on its Ethereum-based network to drive engagement and growth.
The Arbitrum Foundation, the team behind Arbitrum (ARB), an Ethereum Layer 2 scaling solution aimed at increasing transaction throughput, has decided to allocate a large amount of money to develop the gaming industry within its ecosystem.
The approved proposal is derived from the Gaming Catalyst Program (GCP), which will distribute 225 million ARB tokens, equivalent to $215 million, within three years. This change will help increase coverage and interest within the video games industry, targeting developers and potential gamers.
Arbitrum pledges $215M to boost gaming sector
Launched in March, the initiative has been warmly welcomed by the community, with 75% of voters approving it to go ahead. Prominent supporters were L2Beat, Wintermute, and gaming-focused Treasure DAO. Opponents such as Blockworks Research and Camelot DAO were against the move.
Afterwards, the Treasure DAO reacted positively on social media platform X in response to the approval of the statement, ‘Arbitrum is the home of gaming – let’s make some magic.’ .
The fund is primarily targeted at game publishing and development companies. New and emerging game developers can also take home a $500,000 ARB, which is about $483,000.
Large developers may seek investments that include value share through tokens, equity, or similar methods. These strategic investments are intended to help develop and grow new games in the rapidly growing Arbitrum gaming industry.
ARB Token Price Drops Despite New Program
A team of staff will be available to operate GCP on a daily basis. However, a five-person council with experience in gaming, venture capital, data analysis, and DAO governance will oversee the program.
This governance structure enables the management of funding to meet the DAO’s stated goals and objectives while also enabling new, innovative ways of working and being accountable. The Council also has a veto on investment decisions and team appointments to ensure proper implementation of the program and compliance with its rules.
GCP has set a budget limit of $25 million to control its operational costs. The DAO must approve any expenditure on this amount, indicating the program’s strict financial policy. Such rationale for governance and budget management is critical to program success and longevity.
Despite the positive developments, ARB price has seen a downward trend in the market. It is currently trading at $0.9638 with a decrease of 1.40%. Trading volume also declined by 32.17%, indicating a possible continuation of this bearish sentiment.
However, strategic investments by GCP are expected to stimulate long-term growth and attract new players and developers, potentially stabilizing and improving the performance of the token market.