Since the launch of the Arbitrum ecosystem Gaming Catalyst Program (GCP), Arbitrum’s local tokened ARB has decreased by 81 percent. DAO members discuss the recovery of funds due to the failure of the program and lack of transparency.
Returning of investments in the arbitrum game ecosystem is discussed
Arbitrum’s decentralized autonomous organization (DAO) members discuss the recovery of the funds allocated to establish a game ecosystem on the network. The main reason for this discussion is the inadequate progress in the project and the problems with transparency.
On March 24, DAO member Nathan Van Der Heyden submitted an offer to the Arbitrum Gaming Catalyst Program (GCP) to reclaim unused funds allocated. This program, which was initiated in 2024, aimed to position Arbitrum as a leading platform in developing game -top game.
Van der Heyden stated that the program was initially based on “extreme optimistic” projections and said that this was “unsustainable”.
We must terminate GCP activities and secure all possible funds. In this way, we can restore DAO’s investor confidence in the ability to allocate capital.
He also stated that Van der heyden was reluctant to document the activities of GCP and failed to fulfill his promises.
DAO’s Disagreement
Nathan van der Heyden’s proposal led to different views between DAO members. Another DAO member, stating that the remaining funds should be protected, said:
DAO must now come into play and secure whatever is there. Then, a good and meaningful way forward should set.
Although many members think that funds should be taken back immediately, some warned that this approach could have an opposite effect. A DAO member said that this harsh approach could be damaging:
The desire to protect DAO funds and the desire to provide transparency is a valid motivation. However, directly with the back of all funds is extremely hard and possibly a move that will have the opposite effect.
This member suggested that the funds be withdrawn gradually and proposed to develop an approach that enables the GCP to have more flexible reporting standards.
Since the launch of GCP, Arbitrum price is melting
Arbitrum’s Gaming Catalyst program was implemented on 12 March 2024 to support web3 games. The 225 million ARB Tokeni, which is worth 468 million dollars, was allocated to invest in the promising studios and games within the scope of this program.
However, this program also coincided with the opening of a token lock of $ 2.2 billion. This may have caused the token price to a significant decrease. In June 2024, the value of the tokens allocated to the program lost more than 50 percent of its original values and fell to $ 215 million.
At the time of writing this article, the ARB token was traded at $ 0.38 and has experienced a decrease of 81 percent compared to the time of the program. Kriptokoin.comAs we have included in their analysis, some analysts expect the decline to deepen.
General Decrease Trend in Web3 Game Investments
Arbitrum DAO’s debate is seen as part of a general decline tendency in web3 gaming investments. Toshiyuki Otsuka, the founder of Gamefi Platform Snpit, said that the surplus of fluctuations and low -quality projects in the market pushed investors more careful.
Many investors want to see projects that can show long -term sustainability before making capital commitment.
In recent years, OTSUKA added that speculative investments have been replaced by a more sustainable investment environment and only the most promising projects can find funds.
Arbitrum DAO’s fund reimbursement debates are considered as an important test for the future of web3 games. What kind of decision DAO will make and how this decision will have an impact on the ecosystem is closely monitored.
