Arbitrum Foundation, the team behind Arbitrum (ARB), an Ethereum Layer 2 scaling solution that aims to increase transaction throughput, has decided to allocate a large amount to developing the gaming industry within its ecosystem. The approved proposal derived the Gaming Catalyst Program (GCP), which will dispense 225 million ARB tokens, equivalent to $215 million, within three years. This change will help increase coverage and interest within the video games industry, targeting developers and potential gamers.
Arbitrum Commits $215M to Boost Gaming Sector
Launched in March, the community has warmly welcomed the initiative, with 75% of voters granting a go-ahead. Prominent supporters were L2Beat, Wintermute, and the gaming-focused Treasure DAO. Opponents such as Blockworks Research and Camelot DAO were against the move. Subsequently, Treasure DAO reacted positively on social media platform X in response to the approval of the statement, ‘Arbitrum is the home of gaming – let’s make some magic happen.’ This sentiment implies that the community is eager to grow the gaming category in Arbitrum.
The fund is mainly targeted at game publishing and development companies. New and emerging game developers can also take up to $500,000 ARB, which is approximately $483,000. Larger developers can look for investments that involve a value share through tokens, equity, or similar methods. These strategic investments aim to support developing and growing new games in the rapidly growing Arbitrum gaming industry.
ARB Token Price Fall Despite New Program
A team of staff will be available to run the GCP daily. However, a council of five people with experience in gaming, venture capital, data analysis, and DAO governance will oversee the program. This governance structure enables the management of funding to meet the set goals and objectives of the DAO while at the same time coming up with new innovative ways of doing things and being answerable. The council also has a veto on investment decisions and appointments to the teams to guarantee the program’s proper execution and compliance with its rules.
The GCP has set a budget limit of $25 million to control its operational costs. The DAO must approve any expenses over this amount, which underlines the program’s strict financial policy. Such a rationale for structuring governance and budget management is vital to the program’s success and longevity.
Despite the positive developments, the ARB price has experienced a downward trend in the market. It is currently trading at $0.9638, a decrease of 1.40%. The trading volume has also dropped by 32.17%, indicating a possible continuation of this bearish sentiment. However, the strategic investments through the GCP are expected to stimulate long-term growth and attract new players and developers, potentially stabilizing and enhancing the token’s market performance.
Also Read: Anthony Scaramucci Bullish on Bitcoin Reaching $700K Amid Adoption Surge
The post Arbitrum DAO Approves $215 Million Fund to Boost Gaming Ecosystem appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed