Arbitrum Boosts Gaming Industry with $215 Million Catalyst Program

ChainPlay

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6 months ago

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Major Move by Arbitrum Foundation

The Arbitrum Foundation has taken a significant step to elevate the gaming industry. They've allocated 225 million ARB tokens, worth around $215 million, to the Gaming Catalyst Program (GCP). Over three years, this funding will support game development and enhance the recognition and use of Arbitrum, Orbit, and Stylus among game developers and players.

The proposal for the GCP was first introduced in March and gained approval on June 7th. Over 75% of the votes were in favor. The goal was to get the Arbitrum DAO to approve the allocation of 200 million ARB tokens over two years to boost game development on Arbitrum. Key supporters of this proposal include L2Beat, Wintermute, and Treasure DAO, a gaming-focused entity. However, Blockworks Research and Camelot DAO opposed the proposal.

Treasure DAO celebrated the approval of X, stating, "Arbitrum is the home of gaming — let's make some magic happen." The GCP will support both new and early-stage developers with grants of up to 500,000 ARB (around $525,000). Established developers can apply for investments involving a value share component, like tokens, equity, or similar arrangements. The remaining funds will go towards infrastructure-related bounties and operational expenses.

Program Management and Oversight

A dedicated team will manage the daily operations of the program. Additionally, a five-member council, consisting of experts in gaming, VC, data analysis, and DAO governance, will offer strategic oversight. This council ensures that funding is properly allocated to meet the DAO's objectives and has veto power over investment decisions and team appointments.

The GCP has a strict financial framework, capping operational expenses at $25 million. Any spending beyond this limit will require explicit DAO approval. This framework is designed to ensure responsible management of the funds and maintain focus on the program's goals.

This latest move by Arbitrum is expected to drive innovation and growth in blockchain gaming. It positions the Layer 2 network as a key player in this industry.