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Arbitrum's proposal to unlock 225M ARB for gaming boost sparks debate

The proposed allocation represents 8% of the entire ecosystem's total value locked.

Arbitrum's proposal to unlock 225M ARB for gaming boost sparks debate

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Arbitrum’s recent proposal to release 225 million ARB tokens, valued at approximately $250 million, for its Gaming Catalyst Program (GCP) has stirred controversy among its community members. Critics argue that the proposed budget is excessive.

Ryan Graham, an analyst at Messari, said he initially supported the proposal but reversed his position due to discrepancies in the requested funds and a lack of justification for the program’s cost almost tripling from the initial $10 million to $25 million.

The proposal on the forum page asked for $10 million worth of ARB – @AvgJoesCrypto

Some community members have also expressed concerns about excessive upfront funding. One member suggested that incremental funding would allow for better accountability and the effective use of funds.


Another member said in a post on X that the money might be wasted on low-quality, “click-to-earn” projects, which they view as less valuable and impactful.


However, some crypto members voiced support for the GCP proposal. Jason Hitchcock, the founder and General Partner of Four Moons, claimed that creating games requires substantial financial investment.

According to him, the proposed funds are reasonable to attract talented game developers, support game studios, as well as foster a robust gaming ecosystem on Arbitrum. His post was reposted by Dan Peng, Arbitrum’s core contributor and the proposal’s author.

As noted in the proposal, Arbitrum has seen considerable success in decentralized finance but lags behind competitors like Immutable X, Ronin, or Solana in gaming. The GCP intends to establish a team to support game industry developers with technical and strategic resources.

The proposed allocation includes 160 million ARB for developers, 40 million ARB for bounty and rewards, and 25 million ARB for operating costs.

At the time of writing, over 81% of votes favor the proposal, which is likely to pass by June 8.

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