Arbitrum Foundation, the team behind Arbitrum (ARB), an Ethereum Layer 2 scaling solution that aims to increase transaction capacity, has decided to allocate a significant amount of money to the development of the gaming industry within its ecosystem. The approved proposal led to the Gaming Catalyst Program (GCP), which will distribute 225 million ARB tokens, worth $215 million, within three years. This change will help increase coverage and interest within the video game industry, targeting developers and potential gamers.

Arbitrum is committing $215 million to boost the gaming sector

Launched in March, the initiative has been warmly received by the community, with 75% of voters giving a go-ahead. Prominent supporters included L2Beat, Wintermute and the gaming-focused Treasure DAO. Opponents such as Blockworks Research and Camelot DAO opposed the move. Subsequently, Treasure DAO commented positively on social media platform This vote implies that the community is eager to grow the gaming category in Arbitrum.

The fund focuses mainly on game publishers and development companies. New and emerging game developers can also get up to $500,000 ARB, which is approximately $483,000. Larger developers can look at investments that involve a share of value through tokens, shares or similar methods. These strategic investments are intended to support the development and growth of new games in the fast-growing Arbitrum gaming industry.

ARB token price drops despite new program

A team of employees will run the GCP on a daily basis. However, a five-person board with experience in gaming, venture capital, data analytics and DAO governance will oversee the program. This governance structure makes it possible to manage funding to achieve the DAO’s stated goals and objectives, while creating new innovative ways of working and ensuring accountability. The council also has a veto on investment decisions and appointments to the teams to ensure proper implementation of the program and compliance with the rules.

The GCP has set a budget cap of $25 million to control operational costs. The DAO must approve any expenditure above this amount, underscoring the program’s strict financial policies. Such a rationale for structuring governance and budget management is essential to the success and longevity of the program.

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


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