Arbitrum Foundation Pledges $215M to Boost Gaming Ecosystem Via New Catalyst Program
Summary:
The Arbitrum Foundation, behind the Ethereum-based Layer 2 network, Arbitrum Arbitrum (ARB), has pledged to invest approximately $215 million over three years in the gaming industry within its platform via the newly-established Gaming Catalyst Program (GCP). The proposal, first introduced in March, gained official approval in June. Part of the fund will go to publishers and grants for developers, while the remaining will cover the ecosystem's infrastructure and operational costs. A team and a five-member council will run daily operations and provide strategic oversight of GCP.
The team supporting the Ethereum-based Layer 2 network, Arbitrum Arbitrum (ARB), managed by Arbitrum Foundation, has announced a significant contribution towards the expansion of the gaming industry within its framework. It's proposed that 225 million ARB tokens, equivalent to about $215 million, will be distributed over a span of three years via the newly-founded Gaming Catalyst Program (GCP). The objective of the program is to quickly enhance the popularity and utilization of Arbitrum, Orbit, and Stylus amongst gamers and game developers, boosting the growth and engagement within this community.
First announced in March, the proposal officially received approval on June 7, securing more than 75% of the votes in favor. The program intended to request permission from the Arbitrum DAO to reserve 200 million ARB for a duration of two years with the aim to stimulate game development on its blockchain.
Among conspicuous backers of the proposal were L2Beat, Wintermute, and Treasure DAO, a gaming-centric organization. Despite oppositions from Blocworks Research and Camelot DAO, the proposal received acceptance. On social media, Treasure DAO expressed jubilation over the approval of the proposal, stating, "Arbitrum is the home of gaming - let's make some magic happen."
A significant portion of the fund is allocated for publishers. Up-and-coming and rookie developers are qualified to receive grants up to 500,000 ARB (around $483,000 as per current rates). On the flip side, more seasoned developers can seek investments that involve a value sharing component, such as tokens, equity, or similar agreements. The leftover funds will be spread over infrastructure-related bounties and operational costs, supporting the overall growth and progress of the ecosystem.
Regarding governance and funding structure, the daily operations of the GCP will be managed by a dedicated team. A guidance council comprising five members, with expertise in gaming, venture capital, data analytics, and DAO governance, will offer strategic oversight. Ensuring that funds are distributed effectively to meet the DAO's aims while promoting innovation and responsibility, the council also has the power to veto investment decisions and team nominations.
The GCP has implemented a strict financial framework, limiting its operational expenses to $25 million, with any spending over this limit required to attain direct approval from the DAO.
The proposal to fund the legal aid of Tornado Cash's developers Roman Storm and Alexey Pertsev was withdrawn by the Arbitrum DAO in March.
Published At
6/9/2024 10:34:31 AM
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