The Arbitrum Foundation, the driving force behind the layer 2 Ethereum network utilizing rollup technology, has announced a significant investment in the gaming industry within its ecosystem. The foundation plans to distribute approximately US$215 million worth of 225 million Arbitrum tokens (ARB) over the next three years through the newly launched Gaming Catalyst Program (GCP).
The goal of the GCP is to promote the recognition and adoption of Arbitrum, Orbit, and Stylus technologies among game developers and enthusiasts, with the aim of enhancing engagement and growth in the gaming community. A proposal that was put forward in March received approval on June 7, with over 75% of the voters in favor, marking a pivotal moment in encouraging game development on the Arbitrum blockchain.
Key supporters of the proposal include L2Beat, Wintermute, and Treasure DAO, an organization dedicated to the gaming world. Following the approval, Treasure DAO expressed their excitement with a statement declaring, “Arbitrum is the epicenter of gaming – let’s create magic together.”
The GCP has been officially greenlit by Arbitrum DAO, solidifying its position as a hub for gaming, encompassing all games, gaming chains, and developers within its realm. The initiative aims to spark creativity and innovation within the gaming sphere.
Funds from the investment will be allocated strategically, with new developers eligible to receive up to 500,000 ARB each, while more established entities will have the opportunity to secure investments through value-sharing models involving tokens and shares. The program will also set aside resources for infrastructure and operational costs to support the ongoing expansion of the ecosystem.
The day-to-day operations of the GCP will be managed by a dedicated team, while oversight and strategic guidance will be provided by a five-member board with expertise in gaming, venture capital, data analytics, and DAO governance. This board will have veto power over investment decisions and team appointments to ensure the program’s effectiveness and adherence to established protocols.
Operating expenses for the program have been capped at $25 million, with any expenditures exceeding this limit requiring explicit approval from the DAO. This financial strategy underscores the commitment to responsible governance and innovation in the blockchain gaming sector.
At the time of publication, the price of ARB was valued at US$0.9789, reflecting a 1% increase in the last 24 hours.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies comes with the risk of financial loss.
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