Arbitrum DAO has designated a substantial allocation of 225 million ARB tokens for its Gaming Catalyst Program (GCP), aimed at boosting engagement among game developers and players. However, community stakeholders have expressed concerns over the program’s lack of accountability and insufficient updates throughout the last four months. Currently, the allocated ARB is valued at approximately $120.3 million.
What Governance Issues Have Emerged?
In response to these governance issues, Arbitrum delegate Joseph Schiarizzi submitted a proposal to return 220 million ARB from the GCP’s wallet back to the DAO treasury. Schiarizzi criticized the board for failing to meet its obligations.
“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.
Are There Delays in Program Execution?
Data indicates that only 1.35 million ARB tokens have been withdrawn from the GCP wallet, leaving 223.65 million ARB still available. The proposal aims to retain around $2 million for the GCP’s ongoing operations. Despite having a timeline, several aspects of the program have yet to be completed.
A.J. Warner, Strategy Director at Offchain Labs, stated that the program is still in its setup phase and no transparency report has been issued. Warner commented, “Clearly, there is no transparency report on GCP performance data. They are not performing yet.”
The recent resignations of some consultants linked to GCP have raised alarms about the project’s direction. Deliberations among delegates suggest that the innovative aspects of the project may pose challenges in managing substantial token allocations.
- Significant ARB token allocation raises concerns over governance.
- Only a fraction of tokens has been utilized, with major funds still in reserve.
- Community pressure regarding transparency and accountability is mounting.
The ongoing scrutiny surrounding the GCP’s transparency and operational progress casts doubt on the future viability and success of Arbitrum’s ambitious initiative.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/arbitrum-allocates-tokens-for-gaming-initiative