Arbitrum DAO Approves $215 Million Fund to Boost Gaming Ecosystem

Maxwell Mutuma
June 9, 2024
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Arbitrum Infinite Launchpad Faces Strong Community Resistance

Highlights

  • The Arbitrum Foundation has approved a $215 million investment via the Gaming Catalyst Program to support the gaming ecosystem on its network.
  • The program will distribute 225 million ARB tokens over three years to enhance engagement with game developers.
  • Over 75% of community votes supported the proposal, with key backers like L2Beat and Wintermute.

Arbitrum Foundation, the team behind Arbitrum (ARB), an Ethereum Layer 2 scaling solution that aims to increase transaction throughput, has decided to allocate a large amount to developing the gaming industry within its ecosystem. The approved proposal derived the Gaming Catalyst Program (GCP), which will dispense 225 million ARB tokens, equivalent to $215 million, within three years. This change will help increase coverage and interest within the video games industry, targeting developers and potential gamers.

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Arbitrum Commits $215M to Boost Gaming Sector

Launched in March, the community has warmly welcomed the initiative, with 75% of voters granting a go-ahead. Prominent supporters were L2Beat, Wintermute, and the gaming-focused Treasure DAO. Opponents such as Blockworks Research and Camelot DAO were against the move. Subsequently, Treasure DAO reacted positively on social media platform X in response to the approval of the statement, ‘Arbitrum is the home of gaming – let’s make some magic happen.’ This sentiment implies that the community is eager to grow the gaming category in Arbitrum.

The fund is mainly targeted at game publishing and development companies. New and emerging game developers can also take up to $500,000 ARB, which is approximately $483,000. Larger developers can look for investments that involve a value share through tokens, equity, or similar methods. These strategic investments aim to support developing and growing new games in the rapidly growing Arbitrum gaming industry.

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ARB Token Price Fall Despite New Program

A team of staff will be available to run the GCP daily. However, a council of five people with experience in gaming, venture capital, data analysis, and DAO governance will oversee the program. This governance structure enables the management of funding to meet the set goals and objectives of the DAO while at the same time coming up with new innovative ways of doing things and being answerable. The council also has a veto on investment decisions and appointments to the teams to guarantee the program’s proper execution and compliance with its rules.

The GCP has set a budget limit of $25 million to control its operational costs. The DAO must approve any expenses over this amount, which underlines the program’s strict financial policy. Such a rationale for structuring governance and budget management is vital to the program’s success and longevity.

Despite the positive developments, the ARB price has experienced a downward trend in the market. It is currently trading at $0.9638, a decrease of 1.40%. The trading volume has also dropped by 32.17%, indicating a possible continuation of this bearish sentiment. However, the strategic investments through the GCP are expected to stimulate long-term growth and attract new players and developers, potentially stabilizing and enhancing the token’s market performance.

Also Read: Anthony Scaramucci Bullish on Bitcoin Reaching $700K Amid Adoption Surge

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.