Arbitrum DAO Weighs Clawback of Funds from $225M Gaming Catalyst Program

The proposal, authored by NathanVDH (Nathan van der Heyden) and GFX Labs, states that GCP’s mission to accelerate Web3 gaming on Arbitrum has faced delays despite receiving 225 million ARB tokens. Additionally, major leadership changes have occurred, with key council members, including Treasury DAO, leaving the initiative.

According to the proposal, GCP recently attempted to increase contributor compensation while lowering its reporting requirements, raising concerns within the community. Given these issues, the proposal seeks to cut losses, reclaim funds from the Arbitrum GCP, and restore community trust.

If approved, GCP would be required to halt any unnecessary expenditures and return all available funds. The proposal also highlights security risks, noting that GCP holds substantial funds in a multi-signature wallet controlled by a small group.

The proposal is still in its early stages. According to Arbitrum Improvement Proposal (AIP) rules, it must undergo a one-week forum discussion for a temperature check before progressing. The next steps would include a formal proposal, a call for voting, an on-chain DAO vote, and potential implementation.

Reactions to the GCP Fund Clawback Proposal 

The proposal has sparked debate within the community. Some members support reclaiming the funds, while others have raised concerns about the potential consequences.

GCP council member David Bolger emphasized the strategic value of the program for Arbitrum and the competitive nature of the Web3 gaming sector. He suggested refining and improving the program rather than shutting it down. Bolger also noted that major gaming companies like Ubisoft and Square Enix are building on Arbitrum, with more than 25 gaming-related chains operating on the network.

Another community member warned that the proposal could harm Arbitrum DAO’s reputation, making it less attractive to potential service providers and business partners. In response, NathanVDH argued that while reputational damage is a concern, the benefits to $ARB tokenholders make the discussion necessary.

The next steps will determine the fate of the Gaming Catalyst Program and reflect the community’s decision on its future.