Arbitrum DAO Proposes to Defund 25 Million ARB Program

The Arbitrum DAO is considering a proposal to revoke funding for the Gaming Catalyst Program (GCP), a project intended to boost the gaming ecosystem on Arbitrum, the leading Ethereum Layer 2 network. The proposal, which was put forward on Monday, suggests taking back 225 million ARB tokens allocated to the program, amounting to around $215 million at the beginning.

Arbitrum DAO Proposal to Defund GCP

The GCP was launched in March 2024 to support Web3 gaming, with an initial budget and ambitious goals. However, the proposal argues that the program’s projections were overly optimistic and unsustainable, as several key backers, such as Treasure DAO, have already exited, and other contributors have shown decreasing involvement. Moreover, the program has also faced criticism for a lack of transparency regarding its spending and attempts to reduce reporting requirements while increasing contributor compensation.

At the release, the GCP was allocated 225 million ARB tokens, planned to be used over a three-year period. However, only a part of the funding has been used, with the program struggling to implement basic processes like transparent reporting and grant distribution. Despite having over 64 projects in its pipeline by early 2025, the program has faced management turnover and criticized operational inefficiencies.

David Bolger, a member of the GCP council, defended the program, highlighting Arbitrum’s success as a hub for gaming projects, including major industry players like Ubisoft and Square Enix. At present, no consensus has emerged on the proposal, leaving the future of the GCP uncertain.

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