Arbitrum Community Supports Proposal to Allocate 200M ARB to Web3 Game Development
The Arbitrum community is showing strong support for a governance proposal that aims to allocate 200 million ARB tokens towards the development of web3 games on the Ethereum Layer 2.
Community members have mobilized 35 million ARB tokens in favor of the Gaming Catalyst Program (GCP) proposal, which seeks to allocate $250 million worth of ARB as incentives for game developers over the next three years.
While only 101,400 ARB tokens have been mobilized in opposition to the proposal, a minimum of 105.57 million ARB tokens must be cast as votes for the proposal to reach quorum.
The voting process began on May 24 and is set to conclude on June 7.
Proposal to Expand Awareness of Arbitrum Among Players
The GCP proposal aims to expand awareness and adoption of Arbitrum/Orbit/Stylus among builders and players in the gaming community.
It plans to achieve this by offering support, incentives, and game industry-specific tools, positioning Arbitrum as an attractive platform for game development, per the proposal.
“By offering support, incentives, and game industry-specific tools, Arbitrum can position itself as an attractive platform for game development, leading to a surge in high-quality gaming experiences on the network.”
Previously, the proposal passed a preliminary temperature check vote with nearly 97% support in March.
Arbitrum is the home of gaming 🎮💙🧡✨
The Arbitrum Gaming Catalyst Program Tally vote is LIVE! ▶️
If this passes, 200M ARB will be unlocked to invest into Arbitrum games. This will be the single largest program the DAO will have ever funded + one of the biggest in web3.
👇
— Treasure (@Treasure_DAO) May 24, 2024
Arbitrum currently holds the position of the largest Ethereum Layer 2 network in terms of total value locked (TVL), with approximately $19.3 billion locked, according to L2beat.
Additionally, it ranks fifth in the DeFi space with $4.79 billion in total value locked, as reported by DeFi Llama.
The proposal noted that Arbitrum has been successful in the decentralized finance (DeFi) sector but recognized the need to establish itself as a hub for gamers and game builders.
“Several L1s and L2s see this opportunity (most notably Solana, Cardano, Opstack, Immutable, Optimism, to name a few) and are moving to claim the builders with grants and investments.”
160M ARB Tokens Allocated to Onboarding and Growth
Under the GCP, 160 million ARB tokens would be allocated to “onboarding and growth,” attracting and supporting publishers, studios, and independent developers working on web3 gaming titles.
The proposal also includes the establishment of the “Build Grants” program, which would provide 25 million ARB tokens as grants for early-stage projects, with a cap of 500,000 ARB tokens per project.
The remaining 40 million ARB tokens would be allocated to infrastructure and tooling development.
To oversee the incentives program, a GCP council would be formed, consisting of trusted professionals with backgrounds in gaming, venture capital, grant allocation, web3 technology, and DAO relations.
Council members would be elected by the DAO and would not represent GCP applicants or competing networks.
The GameFi sector currently boasts a combined market capitalization of $22.7 billion, experiencing a 144% increase from $9.31 billion at the end of October, according to CoinGecko.
It is worth noting that Ethereum scaling solutions and layer 2 solutions have yet to surpass other Layer 1 blockchains in terms of real processing speed.
This may be attributed to the lower number of on-chain transactions on Ethereum scaling solutions, resulting in slower realized TPS for these blockchains.
