• 15 June, 2024
Market News Price Analysis

Arbitrum Dedicates $215 Million to Gaming with 225 Million ARB Tokens

Arbitrum, an Ethereum layer-two (L2) scaling solution, has pledged a significant investment of $215 million in ARB tokens to nurture the gaming sector on its platform. This initiative follows the June 7 approval of a proposal initially introduced in March, which garnered over 75% support from the voting community.

The Arbitrum Foundation launched the Gaming Catalyst Program (GCP), which plans to allocate 225 million ARB tokens over the next three years. The objective is to enhance the visibility and adoption of Arbitrum and its subprojects Orbit and Stylus, among game developers and enthusiasts.

The proposal that led to this strategic investment initially sought approval from the Arbitrum decentralized autonomous organization (DAO) to allocate 200 million ARB over two years to boost gaming development.

Prominent entities such as L2Beat, Wintermute, and the gaming-centric Treasure DAO supported the proposal. However, opposition came from Blockworks Research and Camelot DAO. Following the approval, Treasure DAO celebrated the decision on X, stating, “Arbitrum is the home of gaming — let’s make some magic happen.”

The funds are primarily earmarked for game publishers and developers. New and emerging game creators could receive grants of up to 500,000 ARB, worth about $483,000. More established developers can seek funding that includes a revenue-sharing model involving tokens, equity, or similar arrangements.

The GCP will be managed by a dedicated team, with a five-member council providing strategic oversight. This council, composed of experts in gaming, venture capital, data analysis, and DAO governance, will also have veto power over financial decisions and appointments within the program.

To ensure accountability and effective use of funds, the GCP has set a financial cap of $25 million on operational expenses. Any spending beyond this threshold will require explicit approval from the DAO.

In other developments, the Arbitrum DAO decided against funding the legal defense for Tornado Cash developers Roman Storm and Alexey Pertsev in March, marking a significant policy decision within the community.

Over the past 24 hours, Arbitrum (ARB) witnessed a slight decline in its market value, closing at $0.9544. This represents a 2.07% decrease from its previous day’s price. The cryptocurrency holds a market capitalization of approximately $2.78 billion, placing it at the 40th position in market rankings.

Can Arbitrum and Injective’s Collaboration Create a More Efficient Blockchain?

The trading volume for ARB over the same period was reported at $285,037,069, marking a 4.79% drop.

ARB/USD daily chart: Tradingview

The daily technical indicators for Arbitrum (ARB) reflect a bearish trend. The Moving Average Convergence Divergence (MACD) is in the bearish zone. It indicates a sustained sell signal as the MACD is below the signal line. This alignment suggests that bearish momentum is still in play, and investors might continue to exercise caution. The Relative Strength Index (RSI) stands at 46.02, indicating neutral.

Notcoin, Injective, Polymesh Signal Potential Bullish Rallies: Analysis Read Previous

Notcoin, Injective, Polymesh Signal Potential Bullish Rallies: Analysis

South Korea's New Law to Regulate NFTs as Virtual Assets from July 19 Read Next

South Korea's New Law to Regulate NFTs as Virtual Assets from July 19