Arbitrum Unveils $215M Gaming Initiative

The Arbitrum Foundation, the driving force behind the Ethereum layer-2 network Arbitrum, has unveiled a groundbreaking initiative to bolster the gaming ecosystem within its domain. Approved on June 7th with over 75% of votes in favor, the proposal earmarks a staggering 225 million Arbitrum (ARB) tokens, valued at approximately $215 million, to be distributed over a three-year period through the newly established Gaming Catalyst Program (GCP).

The primary objective of the GCP is to rapidly amplify the recognition and adoption of Arbitrum, Orbit, and Stylus among game developers and players, thereby fostering growth and engagement within the gaming community. Initially introduced in March, the program sought approval from the Arbitrum decentralized autonomous organization (DAO) to allocate 200 million ARB over two years to incentivize game development on its blockchain.

Garnering support from notable entities such as L2Beat, Wintermute, and the gaming-focused Treasure DAO, the proposal faced opposition from Blockworks Research and Camelot DAO. Treasure DAO enthusiastically endorsed the initiative, proclaiming, “Arbitrum is the home of gaming — let’s make some magic happen.”

Funding Allocation and Governance

A significant portion of the fund is designated for publishers, with new and early-stage developers eligible to receive grants of up to 500,000 ARB (approximately $483,000 at current prices). More established developers can apply for investments involving a value share component, such as tokens, equity, or similar arrangements. The remaining funds will be distributed among infrastructure-related bounties and operational expenses, supporting the ecosystem’s growth and development.

A dedicated team will oversee the GCP’s daily operations, while a five-member council comprising experts in gaming, venture capital, data analysis, and DAO governance will provide strategic oversight and guidance. This governance structure ensures effective allocation of funds to achieve the DAO’s objectives while encouraging innovation and accountability. The council also holds veto power over investment decisions and team appointments, guaranteeing the program’s successful implementation and adherence to its guidelines.

The GCP has established a stringent financial framework, capping its operational expenses at $25 million. Any expenditure exceeding this limit requires explicit approval from the DAO.

In a separate development, the Arbitrum DAO removed a proposal in March to fund the legal defense costs of Tornado Cash’s developers, Roman Storm and Alexey Pertsev.