Arbitrum DAO Allocates $222 Million to Expand Gaming Ecosystem

Arbitrum DAO Allocates $222 Million to Expand Gaming Ecosystem

BlockchainGaming

By Jakub Lazurek

09 Jun 2024 (about 1 month ago)

2 min read

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Arbitrum DAO invests $222 million to boost its gaming ecosystem, aiming to increase user engagement and solidify its position as a leading Ethereum Layer 2 solution.

The Arbitrum Decentralized Autonomous Organization (DAO) has approved a $222 million funding initiative aimed at expanding its gaming ecosystem. This investment seeks to boost user engagement across Arbitrum, Orbit, and Stylus gaming platforms. The funding decision comes amid significant network growth, with a 30% rise in daily active addresses, showcasing increased community adoption. The DAO will allocate over $200 million in ARB tokens to strengthen the Ethereum layer-2 network’s gaming sector.

On June 7, the Arbitrum community approved a proposal to enhance the gaming ecosystem using resources from the Arbitrum Foundation. The initiative will distribute 225 million ARB tokens, valued at $222 million, over three years through the new Gaming Catalyst Program (GCP). This program aims to engage users across Arbitrum, Orbit, and Stylus.

A dedicated team, overseen by a five-member expert council, will manage the GCP. The council includes professionals in gaming, venture capital, data analysis, and DAO governance. The team's operational budget is capped at $25 million, with any extra expenses needing DAO approval. “The GCP Council will be a DAO-elected group of trusted professionals,” the proposal states. This council will provide strategic guidance and support to the GCP Core Team.

Most of the funds are designated for publishers, while new and early-stage developers can apply for grants of up to 500,000 ARB. Established developers must include value-sharing components like tokens or equity. The remaining funds will support infrastructure bounties and operational costs. Growthepie data shows a 30% surge in daily active addresses on the Arbitrum network, reaching 710,000 in the past month. This growth positions Arbitrum ahead of other layer-2 networks in activity.

According to DeFiLlama, Arbitrum is the largest Ethereum Layer 2 solution, with over $4 billion in total value locked (TVL). The Coinbase-backed Base network is a strong competitor, with assets locked surpassing $8 billion and averaging 29 transactions per second, the highest among Ethereum layer-2 networks, as per L2beats.

The $222 million funding initiative is a significant milestone for Arbitrum’s gaming ecosystem. It shows the community’s commitment to fostering growth and innovation by supporting both established and emerging developers. The GCP aims to create a dynamic gaming environment leveraging Arbitrum’s strengths. In summary, the Arbitrum DAO’s $222 million investment is a bold move to boost its gaming sector, reflecting network growth and community adoption. This initiative aims to enhance user engagement and solidify Arbitrum's position in the Ethereum layer-2 ecosystem.

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