Arbitrum DAO allocated 225 million ARB tokens (worth $120.3 million) to its Gaming Catalyst Program to boost adoption among developers and players.
Arbitrum DAO has allocated 225 billion ARB tokens to the Gaming Catalyst Program (GCP) in order to enhance the adaptability of game developers and participants.
Nevertheless, community members have expressed apprehensions regarding the program’s accountability and public updates in the past four months. 225 million ARB is currently valued at approximately 120.3 million dollars.
Governance-Related Issues
Arbitrum delegate Joseph Schiarizzi published a governance proposal on Friday morning in response to these concerns. The proposal aims to return 220 million ARB from the GCP’s multi-signature wallet to the Arbitrum DAO treasury. Schiarizzi observed that the board has not adhered to its obligations.
“It is disappointing that the board has yet to fulfill its duties and is delayed in meeting the commitments for audits and transparency approved in the original proposal,” said Schiarizzi.
Program Delays
The multi-signature wallet has withdrawn 1.35 million ARB tokens, while 223.65 million ARB tokens are still in the GCP, according to the most recent data.
This proposal assumes that GCP will retain approximately $2 million in funding to sustain its operations. Some activities have not yet been finalized despite a designated timeline for completing the second phase of GCP.
According to A.J. Warner, Strategy Director at Offchain Labs, the program is in the preparation phase and has not yet released a transparency report. Warner stated, “The program is still in the process of being established, so there is no transparency report at this time.” There is no transparency report regarding GCP performance data. They have not yet begun their performance.
Certain consultants affiliated with GCP have submitted their resignations. Schiarizzi stated that this circumstance is a negative indicator for Arbitrum. Krzysztof Urbański, the delegate, observed that the project’s innovative nature has presented challenges, which have raised concerns about the DAO’s ability to manage large token allocations.
Pressure to retrieve ARB tokens from the community is anticipated to rise. According to Carlos Mercado, a data scientist at Flipside Crypto, the absence of sufficient resources for DAOs is the cause of these complications. The value of ARB has decreased by approximately 46% since the ratification of GCP.
The DAO’s capacity to oversee substantial token allocations is called into question by the program’s sluggish advancement. As it advances moderately, the GCP is criticized for its inadequate infrastructure.
The future of Arbitrum’s GCP is uncertain given the ongoing criticisms regarding transparency and accountability.
