Arbitrum DAO Proposes to Withdraw 225 Million ARB from Game Incentive Program, Questioning Poor Project Management and Lack of Transparency

On March 25th, the Arbitrum DAO is in the process of deliberating a proposal. The proposal aims to cancel the funding for the "Gaming Catalyst Program" (GCP) and reclaim the previously allocated 225 million ARB tokens. The proposer pointed out that the program was approved under "overly optimistic market expectations" and has now been proven to be unsustainable. One of the main supporters, Treasure DAO, has left Arbitrum, and other key contributors have experienced attrition or a decrease in enthusiasm. Additionally, GCP has been accused of having fund opacity, salary increases for the team, and a reduction in reporting obligations, among other issues. The proposal stated that the project has not even established "basic operations and transparency." GCP committee member David Bolger responded by stating that Arbitrum has become a key hub for gaming projects, attracting more than 25 game-related chains, including Ubisoft, Square Enix, and Tap Nation, to build on its tech stack. GCP was launched in March 2024 to drive the development of the Web3 gaming ecosystem on Arbitrum. The original plan was to use the majority of the funds for game project grants over a period of three years. Currently, community governance discussions are still ongoing, and a clear consensus has not yet been reached.