Arbitrum ARB
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Foundation, the organization that supports the Ethereum rollup-based Layer 2 network Arbitrum, will get 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 tokens worth about $215 million at current prices over three years to a newly-created Gaming Catalyst Program (GCP), which is designed to "...immediately expand awareness and adoption of Arbitrum/Orbit/Stylus by builders and players in the Gaming community," according to the proposal.
First unveiled in March, the proposal officially passed on Friday with over 75% of votes in support. Organizations that significantly supported the proposal include L2Beat, Wintermute, and gaming-focused Treasure DAO, while Blockworks Research and Camelot DAO numbered among those who voted against.
"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," wrote Treasure DAO on X in response to the proposal's passage.
Much of the fund is earmarked for publishers, with new and early-stage developers getting the chance to apply for grants worth a maximum of 500,000 ARB (about $483,000 at current prices) while more established developers must apply for investments with a value share component through tokens, equity, or similar means. The rest of the funds will be allocated to infrastructure-related bounties and operational expenses.
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Day-to-day operations will be run by a dedicated GCP team, though the program will be overseen by a council of "5 individuals with deep gaming, venture experience, analytics/reporting, and/or DAO governance skills," elected by the DAO with the capacity to veto investment decisions and team member appointments. The GCP team's budget cap has been set at $25 million for operational expenses, with any excess expenditures requiring approval from the DAO.
The price of Arbitrum's token fell about 12% from its maximum value of $1.10 on Friday to about $0.97 as of press time following the conclusion of the voting period, according to The Block's Price Page.
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