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>>The Arbitrum community has endorsed a proposal to allocate 200 million ARB tokens towards Web3 game development initiatives.

The Arbitrum community has endorsed a proposal to allocate 200 million ARB tokens towards Web3 game development initiatives.

crypthub

1/24/2025, 11:48:10 AM

Support for Gaming Catalyst Program (GCP) Proposal

The Arbitrum community has shown strong backing for a governance proposal that allocates 200 million ARB tokens towards developing web3 games on Ethereum Layer 2. The proposal, GCP, has mobilized 35 million ARB tokens in its favor while facing only minor opposition. To pass, it requires a minimum of 105.57 million ARB tokens, surpassing the current quorum.

GCP Proposal's Aims and Strategies

The GCP proposal aims to boost Arbitrum’s presence among game developers and enthusiasts through support, incentives, and industry-specific tools. It follows a successful preliminary temperature check vote in March. Currently, Arbitrum leads Ethereum Layer 2 networks in total value locked (TVL) with approximately $19.3 billion and ranks fifth in decentralized finance (DeFi) platforms with $4.79 billion in TVL.

Token Allocation for Gaming Growth

GCP allocates 160 million ARB tokens for onboarding and growth, targeting web3 gaming publishers, studios, and independent developers. It also establishes the "Build Grants" program, providing 25 million ARB tokens to early-stage projects with a maximum of 500,000 ARB tokens per project. The remaining 40 million ARB tokens are set aside for infrastructure and tooling development.

GCP Council Formation and Role

To manage incentives effectively, the GCP council will be formed from professionals experienced in gaming, venture capital, grant allocation, web3 technology, and DAO relations. Elected by the DAO, the council will not represent competing networks or GCP applicants, ensuring fair distribution of resources.

Market Trends and Layer 2 Disparity

The GameFi sector has a combined market capitalization of $22.7 billion as of late October, reflecting a significant surge from $9.31 billion in the previous month (as per CoinGecko). However, Ethereum scaling solutions and layer 2 solutions still lag behind other Layer 1 blockchains in real processing speed due to lower transaction volumes, resulting in slower realized speeds.