The Arbitrum Decentralized Autonomous Organization (DAO) has recently expanded its involvement in the Ethereum layer-2 gaming sector with a substantial investment. The DAO will invest 225 million ARB tokens, roughly $222 million, to develop the gaming industry over the next three years.

This decision stems from a mission to enhance and consolidate game guilds on Arbitrum, Orbit, and Stylus, achieved through the newly established Gaming Catalyst Program (GCP). On June 7, the Arbitrum community officially approved the funding, reflecting their commitment to advancing these networks.

The Gaming Community Program (GCP) aims to drive positive changes and advancements in the gaming communities associated with Arbitrum. It offers financial incentives to both new and established game developers, promotes new game ideas, and expands the network's user base. A dedicated council of five experts in gaming, venture capital, data analysis, and DAO governance oversees the program’s operations. The program's budget is capped at $25 million, with additional expenditures requiring further DAO approval.

The GCP Council, comprising professionals in gaming, venture capital, grants, web3, and DAO management, serves as an advisory body to the GCP Core Team. Most funding will go to established game publishers, but new developers can apply for grants up to 500,000 ARB. Larger funding requests will require developers to provide equity or tokens in exchange for capital.

Increased network activity on Arbitrum indicates growing engagement with the platform. Daily active addresses have risen by 30% in the past month, reaching 710,000, highlighting strong community involvement. According to DeFiLlama, Arbitrum's total value locked (TVL) exceeds $4 billion, solidifying its status as a leading Ethereum layer-2 solution.

Arbitrum faces stiff competition, particularly from Coinbase-funded Base, which has grown significantly, with over $8 billion in locked assets and the highest transaction per second (TPS) rate among Ethereum L2 solutions, averaging 29 TPS.

This significant investment marks Arbitrum's proactive approach towards the gaming sector. As the network grows, this funding is expected to play a crucial role in shaping the future of blockchain gaming on Ethereum’s second layer.