You can also read this news on COINTURK NEWS: Arbitrum DAO Allocates 225 Million ARB Tokens for Gaming Catalyst Program

Arbitrum DAO has allocated 225 billion ARB tokens to the Gaming Catalyst Program (GCP) to increase the adaptation of game developers and players. However, a lack of sufficient accountability and public updates regarding the program over the past four months has raised concerns among community members. At current prices, 225 million ARB is worth approximately 120.3 million dollars.

Concerns Regarding Governance

In light of these concerns, Arbitrum delegate Joseph Schiarizzi published a governance proposal early Friday, aiming to return 220 million ARB from the GCP’s multi-signature wallet back to the Arbitrum DAO treasury. Schiarizzi noted that the board has not fulfilled its commitments.

“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.

Delays in the Program

Current data shows that 1.35 million ARB tokens have been withdrawn from the multi-signature wallet, while 223.65 million ARB tokens remain in the GCP. This proposal anticipates leaving approximately 2 million dollars in funding for GCP to continue its operations. Despite a designated timeline for the completion of the second phase of GCP, some activities have not yet been finalized.

A.J. Warner, Strategy Director at Offchain Labs, indicated that the program is still in the setup phase and a transparency report has not been released yet. Warner remarked, “There is no transparency report yet because the program is being established… Clearly, there is no transparency report on GCP performance data. They are not performing yet.”

“The board’s lack of progress is not meeting the program’s requirements,” said Warner.

Some consultants associated with GCP have resigned. Schiarizzi expressed that this situation is an unfavorable sign for Arbitrum. Delegate Krzysztof Urbański noted that the project’s innovative nature has created challenges, raising doubts about the DAO’s competence in managing large token allocations.

Pressure for the retrieval of ARB tokens from the community is expected to increase. Flipside Crypto data scientist Carlos Mercado stated that the lack of adequate resources for DAOs leads to such issues. Since the approval of GCP, the value of ARB has dropped by approximately 46%.

The slow progress of the program calls into question the DAO’s ability to manage large token allocations. Criticism is directed at the GCP for lacking adequate infrastructure as it progresses at a moderate pace.

In light of ongoing criticisms regarding transparency and accountability, the future of Arbitrum’s GCP remains uncertain.

The post Arbitrum DAO Allocates 225 Million ARB Tokens for Gaming Catalyst Program appeared first on COINTURK NEWS.