Arbitrum Distributes $215 Million in ARB Tokens to Drive Gaming Innovation
The Arbitrum Foundation, the team responsible for Arbitrum, the Ethereum Rollup-based layer 2 network, has devoted significant resources to advancing the gaming industry within the ecosystem.
The offering secures 225 million Arbitrum (ARB) tokens, worth approximately $215 million, to be distributed over three years through the newly established Gaming Catalyst Program (GCP).
The program aims to foster growth and engagement within the gaming community by rapidly increasing awareness and use of Arbitrum, Orbit and Stylus among game developers and players.
The proposal, first proposed last March, was approved on June 7 with more than 75% of the votes in favor. The program proposed asking the Arbitrum Decentralized Autonomous Organization (DAO) to approve an allocation of 200 million ARB over two years to encourage game development on the blockchain.
Notable proponents of the proposal include L2Beat, Wintermute, and gaming-focused organization Treasure DAO. Blockworks Research and Camelot DAO also opposed it.
In a celebratory response to X, Treasure DAO approved the following proposal: “Arbitrum is the home of games. Let’s make the magic happen.”
Funding and Governance Structure
A significant portion of the funds are designated for publishers, with new and early-stage developers eligible for grants of up to 500,000 ARB (about $483,000 at current prices).
On the other hand, more established developers can apply for investments involving value-sharing components such as tokens, equity, or similar contracts. The remaining funds will be distributed to infrastructure-related bounties and operating expenses to support the growth and development of the ecosystem.
Related: Arbitrum DAO votes to fund $1 million for legal defense of Tornado Cash developers
A dedicated team handles GCP’s day-to-day operations. Meanwhile, a five-member council comprised of gaming, venture capital, data analytics and DAO governance experts will provide strategic oversight and guidance.
This governance structure encourages innovation and accountability while ensuring that funds are allocated effectively to achieve the DAO’s goals. The Council also retains veto power over investment decisions and team appointments to ensure successful implementation of the program and compliance with its guidelines.
GCP has established a strict financial framework that limits operating expenses to $25 million. Expenditures exceeding this limit require explicit approval from the DAO.
Also in March, Arbitrum DAO dropped an offer to help Tornado Cash developers Roman Storm and Alexey Pertsev with their legal defense costs.
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