Arbitrum Community Proposes Fund Transfer for Gaming Catalyst Program

Proposal to Transfer ARB Tokens from Gaming Catalyst Program to Arbitrum DAO Treasury

The Arbitrum community is actively discussing a significant proposal involving the transfer of 220 million ARB tokens, which is estimated to be around $122 million. This proposal is aimed at redirecting funds from the Gaming Catalyst Program (GCP) to the Arbitrum DAO treasury. The idea behind this initiative is to strategically manage the remaining resources while ensuring that the GCP can operate until further funding becomes essential.

Retention of Funds for Continued Operations

Under the proposed plan, a smaller amount of 3.65 million ARB tokens (approximately $2 million) would be retained for the GCP to facilitate its ongoing operations, ensuring the program has the necessary financial support until it can secure additional funding.

Performance Review and Milestones

Since the GCP's approval on June 10, the program has reportedly utilized around 1.7 million ARB tokens within a four-month span. Despite this expenditure, the program has not achieved notable milestones such as:

• Launching an official website.
• Issuing requests for proposals (RFPs).
• Considering grants to promote its objectives.

Furthermore, there is uncertainty regarding the election of permanent council members for the GCP, which might impede its long-term strategy. Community members have expressed concerns about the program’s transparency and effectiveness in executing its mandates.

Lack of Regular Updates

Although the GCP has been providing some updates via the Arbitrum’s DAO forum, the community feels that the updates have not been consistent with the requirements established in the original proposal, particularly the expectation of bi-weekly updates.

Background on the Gaming Catalyst Program

The GCP was initially approved in June, following its announcement in March. It was designed to boost the visibility and adoption of Arbitrum, Orbit, and Stylus within the gaming community, focusing on developers and gamers. Originally, the GCP had a substantial allocation of 225 million ARB tokens estimated to be valued at $215 million at the time of its inception. However, with the recent downturn in ARB prices, the current value of the allocated tokens has fallen to about $122 million, indicating a significant decline in market valuation.

Conclusion

The proposal to transfer ARB tokens from the GCP to the Arbitrum DAO treasury indicates a strategic response to the current challenges facing the program. Ensuring proper funding channels for the GCP while evaluating its operational efficacy will be critical for the future collaboration between Arbitrum and the gaming community.