The Arbitrum Foundation, the team responsible for the Ethereum rollup-based layer-2 network Arbitrum, has committed a substantial allocation of resources to developing the gaming industry within its ecosystem.

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

The program aims to rapidly increase recognition and usage of Arbitrum, Orbit, and Stylus among game developers and players, fostering growth and engagement within the gaming community.

Initially introduced in March, the proposal gained official approval on June 7, with a majority of over 75% of votes in favor. The program had proposed asking the Arbitrum DAO to approve the earmarking of 200 million ARB over a two-year period to encourage game development on its blockchain.

Notable proposal supporters included L2Beat, Wintermute, and Treasure DAO, a gaming-focused organization. Despite opposition from Blockworks Research and Camelot DAO, the proposal gained approval.

In a celebratory response on social media platform X, Treasure DAO endorsed the proposal, “Arbitrum is the home of gaming — let’s make some magic happen.”

Funding and governance structure

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).

On the other hand, 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.

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A dedicated team will handle the daily operations of the Gaming Catalyst Program (GCP). Meanwhile, a five-member council comprising gaming, venture capital, data analysis, and DAO governance experts will provide strategic oversight and guidance.

This governance structure ensures that funding is allocated effectively 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 established a stringent financial framework, capping its operational expenses at $25 million. Any expenditure exceeding this limit requires explicit approval from the DAO.

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

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