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Arbitrum Community Backs Gaming Catalyst Program Proposal
The Arbitrum community is rallying behind a governance proposal that aims to allocate 200 million ARB tokens towards the development of web3 games on the Ethereum Layer 2 network.
Support for Gaming Catalyst Program
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 Objectives
The GCP proposal aims to expand awareness and adoption of Arbitrum 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.
Previously, the proposal received nearly 97% support in a preliminary temperature check vote in March.
Allocation of ARB Tokens
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.
GCP Council Formation
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.
Market Insights
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.
Ethereum scaling solutions and layer 2 solutions have yet to surpass other Layer 1 blockchains in terms of real processing speed, possibly due to the lower number of on-chain transactions on Ethereum scaling solutions, resulting in slower realized TPS for these blockchains.