The Arbitrum Foundation, the dedicated team responsible for the Arbitrum Layer 2-based network
The Arbitrum Foundation, the team responsible for the Arbitrum layer 2 network based on the Ethereum cluster, has dedicated a significant allocation of resources to the development of the gaming industry within its ecosystem.
The proposal calls for 225 million Arbitrum (ARB) tokens, worth approximately US$215 million, to be distributed over three years through the new Gaming Catalyst Program (GCP).
The program aims to rapidly increase recognition and usage of Arbitrum, Orbit and Stylus among game developers and gamers, thereby fostering growth and engagement within the gaming community.
The proposal was initially presented in March and received formal approval on June 7, with more than 75% of the votes in favor. The program proposed asking the Arbitrum DAO to agree to allocate 200 million ARB over two years to encourage game development on its blockchain.
Notable backers of the proposal include L2Beat, Wintermute, and Treasure DAO, a gaming-focused organization. Despite opposition from Blockworks Research and Camelot DAO, the proposal was approved.
In a celebratory response on the social media platform
Funding and governance structure
Much of the funding has been allocated to publishers, with new and beginning developers eligible for grants of up to 500,000 ARB (around $483,000 at current prices).
On the other hand, more established developers can apply for investments that include a value-sharing component, such as tokens, stocks, or similar deals. The remaining funds will be distributed to grants related to infrastructure and operational expenses, supporting the growth and development of the ecosystem.
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A dedicated team will manage the day-to-day operations of the Gaming Catalyst Program (GCP). Meanwhile, a five-member board of directors including experts in gaming, venture capital, data analytics and DAO governance will provide oversight and strategic direction.
This governance structure ensures that funding is allocated effectively to achieve the DAO’s objectives while encouraging innovation and accountability. The board also has veto power over investment decisions and team appointments, ensuring the successful implementation of the program and compliance with its guidelines.
GCP established a strict financial framework, capping its operating expenses at $25 million. Any expenditure exceeding this limit requires the express approval of the DAO.
Also in March, Arbitrum DAO removed a proposal to fund the legal defense costs of Tornado Cash developers Roman Storm and Alexey Pertsev.
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