Arbitrum to Distribute $215M in ARB Tokens to Game Innovation

The Arbitrum Foundation, the group responsible for Arbitrum, a layer-2 network based on the Ethereum package, has allocated significant resources to develop the gaming industry within the ecosystem.

The proposal calls for 225 million Arbitrum (ARB) tokens, valued at approximately $215 million, to be distributed over three years through the newly established Game Catalyst Program (GCP).

The program aims to rapidly increase the recognition and use of Arbitrum, Orbit and Stylus among game developers and players, in order to increase growth and participation in the gaming community.

The proposal, proposed in early March, received official approval on June 7, with a majority vote of over 75%. The program proposed asking Arbitrum DAO to approve the allocation of 200 million ARB over two years to encourage gaming development on the blockchain.

Notable proponents of the proposal include L2Beat, Wintermute, and Treasure DAO, a gaming-focused organization. Despite opposition from Blockwork Research and Camelot DAO, the proposal was accepted.

In a dignified response on social media platform X, Treasure DAO endorsed the idea that “Arbitrum is the house of gaming – let's make some magic happen.”

Financial and administrative structure

A significant portion of the fund is dedicated to publishers, with new and early-stage developers eligible to receive grants of up to 500,000 ARB (approximately $483,000 at current prices).

On the other hand, more established developers can apply for investments that include a value share component, such as tokens, equity or similar arrangements. The rest of the money is divided between benefits and operating costs related to the infrastructure, which supports the growth and development of the ecosystem.

Related: Arbitrum DAO votes on $1M funding for Tornado Cash devs' legal defense

An independent team oversees the daily operations of the Gaming Catalyst Program (GCP). Meanwhile, a five-member council provides strategic oversight and guidance to gaming, venture capital, data analytics and DAO management experts.

This governance structure ensures that funding is allocated efficiently to achieve the DAO's objectives while encouraging innovation and accountability. The council retains veto power over investment decisions and team appointments, ensuring the program's successful implementation and adherence to guidelines.

GCP has established a tight financial framework, capping its operating costs at $25 million. Any expenditure exceeding this limit requires express permission from the DAO.

Also, in March, The Arbitrum DAO rejected a proposal to fund the legal defense costs of Tornado Cash developers, Roman Storm and Alexey Percev.

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