Sunday, June 23, 2024
Home > News > Cryptocurrency Market > Arbitrum DAO Agrees To Distribute $216 Million In Funding

Arbitrum DAO Agrees To Distribute $216 Million In Funding

The Arbitrum Foundation, a Decentralized Autonomous Organization (DAO) tasked with developing and nurturing the Arbitrum ecosystem, has approved the start-up of a support fund aimed at developing projects in its gaming ecosystem. The organization has revealed plans to distribute a whopping $216 million to improve its gaming ecosystem.

Arbitrum To Allocate $216 Million For Gaming Proposal

The Arbitrum Foundation has officially endorsed a proposal, involving a funding initiative to expand and develop its gaming ecosystem. According to its blog post, the Arbitrum DAO will work towards allocating 225 million ARB tokens, valued at approximately $216 million, to support the growth of gaming projects on the network.

Related Reading

This proposal underwent a formal voting process amongst community members. Of the total voters in the foundation, a staggering 162.41 million voted in favor of the gaming proposal, while 50.48 million opposed it. Additionally, about 44,093 members abstained from voting. 

As a result of the overwhelming approval, the Gaming Catalyst Program (GCP) will receive financial support from the Arbitrum Foundation over the course of three years. The program is designed to facilitate and expand awareness and adoption of Arbitrum/Orbit/Stylus by builders and players within the gaming community.

Moreover, the Arbitrum Foundation has set its sights on the $250 billion gaming vertical which is projected to double by 2030, reaching a substantial $500 billion market. The organization is positioning itself to capitalize on the market’s growth as well as the prevailing trend of integrating blockchain technology with gaming

In its blog post, the organization revealed plans to recruit top-tier developers to build high-quality and engaging games that will effectively attract and retain the attention of users within the Arbitrum ecosystem. It disclosed that it has emerged as a leader in the competitive gaming market by incorporating a dynamic strategy that combines innovation, strong technological capabilities, organic builders and short and long-term incentives.

Moreover, the rapid expansion of Decentralized Finance (DeFi) applications on Arbitrum highlights the platform’s ability to attract new developers and users. The foundation has labeled this growth as a “snowball effect,” emphasizing that when there is an increasing number of builders and users, the Arbitrum DAO continues to add value. 

The Goal Of The Gaming Catalyst Program

While acknowledging its shortcomings and recognizing its failure to match the performance of competitors such as Immutable X, Ronin, and Solana, the Arbitrum Foundation has also lauded its immense success in the decentralized finance sector. The organization has disclosed that through the Gaming Catalyst Program, it will facilitate the growth of its ecosystem by establishing a dedicated team and funds to provide technical and strategic support to the gaming industry

Related Reading

The foundation outlined a list of hypothetical projects in the program that will help develop Arbitrum’s gaming ecosystem. According to the organization, the Gaming Catalyst Program will provide support and resources for developers interested in building on the network. This will include mentorship, funding, and other assistance to expedite development. 

Moreover, the Arbitrum DAO will allocate all resources strategically to maximize efficient usage and impact on the gaming ecosystem. The organization also aims to position itself as an attractive platform that will draw and maintain the best game developers in the industry. 

Additionally, the Gaming Catalyst Program will play a major role in expanding new opportunities and use cases for the Arbitrum network. By supporting the development of gaming infrastructure, Arbitrum (ARB) will be able to diversify its ecosystem and extend services to a wider range of users and developers, not limited to Orbit chain and Stylus adoption.

ARB price falls below $1 | Source: ARBUSDT on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Source