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Arbitrum DAO Approves $222 Million for Gaming Ecosystem Expansion

2 mins
Updated by Lynn Wang
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In Brief

  • The Arbitrum DAO has approved a $222 million funding initiative to enhance its gaming ecosystem.
  • The inititave aims to boost user engagement across the Arbitrum, Orbit, and Stylus gaming communities,.
  • This investment comes amid significant network growth, with a 30% increase in daily active addresses.
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The Arbitrum Decentralized Autonomous Organization (DAO) has approved over $200 million worth of ARB tokens to enhance the Ethereum layer-2 network’s gaming sector.

This funding milestone coincides with a surge in key network metrics, reflecting growing community adoption.

Arbitrum Boosts Gaming Community

On June 7, the Arbitrum community passed a proposal to fund the gaming ecosystem using resources from the Arbitrum Foundation. The initiative will allocate 225 million ARB tokens, valued at approximately $222 million, over three years through the new Gaming Catalyst Program (GCP).

Read more: Arbiscan: A Comprehensive Guide to Arbitrum Blockchain Explorer

Arbitrum Gaming Proposal.
Arbitrum Gaming Proposal. Source: Tally

The GCP will stimulate user engagement across Arbitrum, Orbit, and Stylus gaming communities. A dedicated team, overseen by a five-member council of experts in gaming, venture capital, data analysis, and DAO governance, will manage the program. The team will cap its operational budget at $25 million, with any additional expenses requiring DAO approval.

“The GCP Council will be a DAO elected group of trusted professionals with backgrounds ranging across gaming, venture, grant allocation, web3 technology, and DAO relations. The group functions as a braintrust that offers their accumulated knowledge to empower the GCP Core Team,” the proposal stated.

Meanwhile, most funds are designated for publishers, while new and early-stage developers can apply for grants of up to 500,000 ARB. However, established developers seeking funding must seek investments with value-sharing components such as tokens or equity. The remaining funds will support infrastructure-related bounties and operational costs.

According to Growthepie data, the Arbitrum network has seen a significant surge in activity, with a 30% increase in daily active addresses over the past month, reaching 710,000. This growth also positions Arbitrum ahead of other layer-2 networks. Data from DeFiLlama confirms that Arbitrum is currently the largest Ethereum Layer 2 solution, dominating the market with a total value locked (TVL) of over $4 billion.

Ethereum L2 Daily Active Addresses. Source: Growthpie

Read more: Arbitrum (ARB) Price Prediction 2024/2025/2035

Meanwhile, the Coinbase-backed Base network is emerging as a strong competitor. Its recent growth has pushed the total value of assets locked on it to over $8 billion, surpassing Optimism. Additionally, Base averages 29 transactions per second, the highest among Ethereum layer-2 networks, according to L2beats data.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.
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