Members of the Arbitrum decentralized autonomous organization (DAO) are actively discussing whether to revoke funds allocated to its gaming ecosystem initiative due to concerns over transparency and lack of progress.
The Arbitrum Gaming Catalyst Program (GCP) was launched in early 2024 with the goal of establishing Arbitrum as a leading blockchain network for Web3 gaming. However, DAO contributor Nathan van der Heyden introduced a formal proposal on March 24, 2025, calling for the recovery of unused funds, citing unrealistic expectations and poor execution.
The GCP initially allocated 225 million ARB tokens, valued at approximately $468 million, to support game studios and developers building on-chain games. However, following a $2.2 billion token unlock and market downturn, the value of those tokens dropped to around $215 million by mid-2024.
As of now, ARB trades at just $0.38, marking an 81% decline from its launch price. Critics argue that the program has failed to deliver on its promises, with some DAO members accusing its administrators of reluctance to document activities and provide transparency.
While many DAO members support an immediate clawback of funds, others advocate for a more measured approach. Some suggest phased clawbacks and improved oversight rather than abruptly ending the initiative. One DAO member emphasized that while protecting funds is crucial, an immediate revocation could be counterproductive
The debate highlights broader challenges in Web3 gaming, as other blockchain projects, such as ZKsync, have also discontinued liquidity rewards due to poor market conditions.
The discussion comes amid growing concerns about the sustainability of blockchain gaming investments. Some DAO members argue that the GCP was approved during a period of heightened optimism, which has since proven to be unsustainable. Others believe that the initiative could still be salvaged with better governance and reporting standards.
The proposal to revoke funds has gained traction, with supporters calling for decisive action to restore confidence in the DAO’s capital allocation abilities.
Shogun Lin
