The Arbitrum community is currently showing immense support for a governance proposal that aims to allocate 200 million ARB tokens toward the development of web3 games on the Ethereum Layer 2 network. With 35 million ARB tokens already mobilized in favor of the Gaming Catalyst Program (GCP) proposal, community members are keen on allocating $250 million worth of ARB as incentives for game developers over the next three years. Despite minimal 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.
The GCP proposal aims to expand awareness and adoption of Arbitrum/Orbit/Stylus among builders and players in the gaming community by offering support, incentives, and game industry-specific tools. This move aims to position Arbitrum as an attractive platform for game development, leading to a surge in high-quality gaming experiences on the network. The proposal previously passed a preliminary temperature check vote with nearly 97% support in March, showcasing the community’s enthusiasm for the initiative.
Arbitrum stands as the largest Ethereum Layer 2 network in terms of total value locked (TVL), boasting approximately $19.3 billion locked. It also ranks fifth in the DeFi space with $4.79 billion in total value locked. Acknowledging its success in the DeFi sector, the proposal recognizes the need for Arbitrum to establish itself as a hub for gamers and game builders amidst growing competition from other Layer 1 and Layer 2 networks.
Under the GCP, 160 million ARB tokens would be allocated to “onboarding and growth,” aimed at attracting and supporting publishers, studios, and independent developers working on web3 gaming titles. The proposal also includes the establishment of the “Build Grants” program, providing 25 million ARB tokens as grants for early-stage projects. An additional 40 million ARB tokens would be allocated to infrastructure and tooling development. To oversee the incentives program, a GCP council would be formed, consisting of professionals with backgrounds in gaming, venture capital, grant allocation, web3 technology, and DAO relations.
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, showcasing the sector’s rapid growth. Ethereum scaling solutions and layer 2 solutions are yet to surpass other Layer 1 blockchains in terms of real processing speed, potentially due to lower on-chain transactions on Ethereum scaling solutions, resulting in slower realized transactions per second (TPS) for these blockchains. Overall, the GCP proposal aims to boost awareness and adoption of Arbitrum in the gaming community, positioning the network as a leading platform for web3 game development.
