Arbitrum Plans to Allocate $215M for Gaming Innovation

Arbitrum unveils plans to allocate $215 million in ARB tokens, marking a significant investment aimed at catalyzing innovation within the gaming sector

The Arbitrum Foundation, the team responsible for the Ethereum rollup-based layer-2 network Arbitrum, has allocated significant resources to the advancement of the gaming industry within its ecosystem.

The newly established Gaming Catalyst Program (GCP) will distribute 225 million Arbitrum (ARB) tokens, estimated to be worth $215 million, over a three-year period.

By rapidly increasing the recognition and usage of Arbitrum, Orbit, and Stylus among game developers and players, the program aims to foster development and engagement within the gaming community.

More than 75% of the votes in favor of the proposal led to its final authorization on June 7. The program had suggested that the Arbitrum decentralized autonomous organization (DAO) be requested to authorize the earmarking of 200 million ARB over a two-year period in order to promote the development of games on its blockchain.

Treasure DAO, a gaming-focused organization, Wintermute, and L2Beat were among the notable supporters of the proposal. Opponents included Blockworks Research and Camelot DAO.

Treasure DAO endorsed the proposition in a celebratory response on X, saying, “Arbitrum is the home of gaming; let’s make some magic happen.”

Governance and funding framework

New and early-stage developers are eligible to receive grants of up to 500,000 ARB (approximately $483,000 at current prices), with a substantial portion of the fund being allocated to publishers.

Conversely, developers who have attained a higher level of expertise may submit applications for investments that incorporate a value-share component, including equity, tokens, or comparable arrangements.

The distribution of the remaining funds among infrastructure-related assets and operational expenses will facilitate the ecosystem’s growth and development.

A specialized staff will manage the daily operations of the GCP. In the interim, a five-member council that includes experts in data analysis, gaming, venture capital, and DAO governance will provide strategic guidance and oversight.

This governance structure ensures the effective allocation of funding to achieve the DAO’s objectives, while simultaneously fostering accountability and innovation. The council’s veto power over investment decisions and team appointments ensures the program’s successful implementation and adherence to its guidelines.

The GCP implemented a rigorous financial framework that restricted its operational expenditures to $25 million. The DAO must explicitly approve any expenditure that exceeds this limit.

Additionally, in March, the Arbitrum DAO eliminated a proposal to finance the legal defense expenses of Tornado Cash’s developers, Roman Storm and Alexey Pertsev.