The Arbitrum DAO, which manages governance of Ethereum's larger Layer 2, is considering a proposal to allocate 225 million ARB to bolster the ecosystem's gaming sector.
What's the scoop?
- Long-term commitment: Funding only requires a one-time approval, but the program is expected to last three years. The majority of ARB tokens (135 million) are for direct investment, with an additional 40 million allocated for infrastructure bounties, 25 million to be distributed via grants, and the remaining 25 million to fund program administration.
- Big ambitions: The proposal aims to make Arbitrum the de facto destination for on-chain gaming, with stated goals to drive the creation of 400-600 apps, fund 100-200 games, result in 50+ new Orbit L3 launches, and migrate projects to Arbitrum in favor of alternative chains .
- Major DAO support: Although voting will continue until next Friday (June 10), 82% of voters currently support the proposal. It received “yes” votes from all of the DAO's biggest delegates, including Treasure, Olimpio, L2BEAT, Gauntlet, Wintermute, and MUX Perpetuals.
Taken without a bank:
Even if the measure may seem very favorable at first glance, the vote was significantly influenced through the support of giga-delegates, some of whom have obvious conflicts of interest with the broader Arbitrum ecosystem.
Although allocating funds to economically productive activities can have a positive impact on the Arbitrum ecosystem, there are concerns that the massive revival of gambling is not the best use of DAO funds and could have a negative impact on the price of tokens.
Crypto gaming remains largely unproven; despite the billions of dollars invested, no revolutionary concept has been adopted in a lasting way. This suggests that a more measured deployment of funds would be prudent if the Arbitrum DAO truly intends to pursue this path.
I just voted “no” to GCP's proposal to finance gaming projects on Arbitrum with 225 million $ARB ($250 million) over the next 3 years
I think doubling the game makes a lot of sense for refereeing, but I'm not a big fan of funding a task force with that much money *up front*
I would prefer… pic.twitter.com/GIkgyd7sEj
– lito.eth (@litocoen) May 31, 2024