Arbitrum DAO Considers Withdrawing Support for Gaming Catalyst Program

According to BlockBeats, Arbitrum DAO is currently evaluating a proposal to withdraw funding from the Gaming Catalyst Program (GCP) and reclaim 225 million ARB tokens previously allocated. The proposal argues that the program was approved under overly optimistic market expectations and has proven unsustainable. Key supporters, including Treasure DAO, have exited Arbitrum, and other significant contributors have either left or shown decreased enthusiasm. The GCP has faced criticism for lack of transparency in fund usage, increased team salaries, and reduced reporting obligations. The proposal claims the project has failed to establish basic operational and transparency standards. David Bolger, a member of the GCP committee, responded by highlighting Arbitrum's role as a significant hub for gaming projects, attracting over 25 game-related chains, including Ubisoft, Square Enix, and Tap Nation, to build on its technology stack. Launched in March 2024, the GCP aimed to foster the development of the Web3 gaming ecosystem on Arbitrum, with plans to allocate most of its funds to gaming projects over three years. Community governance discussions are ongoing, and no clear consensus has been reached yet.