Arbitrum DAO Allocates $200M for Gaming Ecosystem Development
The Arbitrum Decentralized Autonomous Organization (DAO) recently approved a significant sum of $200 million in ARB tokens to boost the Ethereum layer-2 network’s gaming sector. This funding milestone aligns with an upsurge in essential network metrics, indicating expanding community adoption.
Arbitrum Community Funds Gaming Ecosystem
– On June 7, the Arbitrum community endorsed a proposal to support the gaming ecosystem via resources from the Arbitrum Foundation.
– The initiative will distribute 225 million ARB tokens, equivalent to around $222 million, over three years through the new Gaming Catalyst Program (GCP).
The GCP aims to enhance user engagement across Arbitrum, Orbit, and Stylus gaming communities. A specialized team, led by a council of five experts in gaming, venture capital, data analysis, and DAO governance, will oversee the program. They plan to limit the operational budget to $25 million, with additional expenses requiring DAO approval.
The GCP Council Functions
– The GCP Council comprises professionals in various fields, including gaming, venture capital, grant allocation, web3 technology, and DAO relations.
– This group serves as a braintrust providing knowledge to empower the GCP Core Team.
Majority of the funds are earmarked for publishers, while new and early-stage developers can apply for grants of up to 500,000 ARB. However, established developers must secure funding with value-sharing elements like tokens or equity. The remaining funds will be utilized for infrastructure-related bounties and operational costs.
Arbitrum Network Growth
– Recent data from Growthepie indicates a notable increase in daily active addresses on the Arbitrum network, rising by 30% over the past month to reach 710,000.
– This surge has positioned Arbitrum as a leader among other layer-2 networks.
– Data from DeFiLlama confirms Arbitrum’s dominance as the largest Ethereum Layer 2 solution, boasting a total value locked (TVL) exceeding $4 billion.
During this period, the Coinbase-backed Base network has emerged as a formidable competitor, with the total value of assets locked surpassing $8 billion, overtaking Optimism. Base also leads in terms of transactions per second, averaging 29, the highest among Ethereum layer-2 networks based on L2beats data.
Hot Take: Conclusion
In conclusion, the Arbitrum DAO’s approval of $200 million to develop the gaming ecosystem is a significant boost for the Ethereum layer-2 network. With growing community adoption and vital network metrics on the rise, Arbitrum continues to solidify its position in the market. Meanwhile, competitors like the Coinbase-backed Base network showcase strong growth, shaping the landscape of layer-2 solutions. The crypto space is witnessing dynamic developments that promise an exciting future for decentralized finance and blockchain technology.
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