Arbitrum DAO member proposes withdrawal of $120 million in ARB from gaming program

Arbitrum DAO member proposes withdrawal of $120 million in ARB from gaming program

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  1. An influential member of Arbitrum’s DAO has suggested withdrawing nearly $120 million earmarked for the Gaming Catalyst Program (GCP) due to delays and lack of transparency.
  2. GCP, which aimed to support the adoption of Arbitrum in gaming with 225 million ARB tokens, failed to achieve its original goals, such as appointing board members and opening grant applications.
  3. The goal of the proposal is to rekindle the dialogue and call for greater transparency, highlighting governance challenges within the DAO and the importance of effective resource management.

Arbitrationscalability solution Layer 2, is currently at the heart of a lively discussion within it DAO. influential member, Josef Schiarizzisuggested withdrawal of nearly $120 million funds allocated to the development program for the video game ecosystem on the platform.

This program, Gaming Catalyst Program (GCP), implemented last June, was designed to support the adoption of Arbitrum in the gaming world. However, several delays and an apparent lack of transparency pushed Schiarizzi submit this proposal and bring it to the attention of the Arbitrum community and developers.

A program whose implementation is slow

THE GCPannounced in March 2023 and ratified by the DAO in June with a 76% vote in favor, aimed to invest 225 million ARB tokens to support the development of the gaming ecosystem on Arbitrum. However, little concrete progress appears to have been made since the vote on this ambitious agenda. Goals to be achieved in the first four months, including appointing board members, creating requests for proposals (RFPs) for infrastructure development, opening grant applications and setting up communication channels, have not was not respected.

This inaction led Schiarizzi condemn the lack of follow-up and suggest withdrawal of 220 million ARB tokens (approximately $119 million) from a multisig wallet managed by GCP officials, with the funds expected to return to the DAO treasury.

The complexity of deadlines and the response of developers

Steven Goldfederco-founder by Offchain Labsdeveloper arbitration courtresponded to this suggestion on X, formerly Twitter. He explained that the implementation of the program is “super complicated” and it takes longer than expected. According to Goldfederindeed there have been two weeks of calls and the delays are justified complex proceduresespecially in terms of legal structure, hiring and monitoring.

AJ Warnerdirector of partnerships and strategy in the company Offchain Labsfor his part, he specified it lack of transparency reporting it is due to the fact that the program is still in the preparation phase. He added that the funds are still under the control of the foundation and no hard data on GCP’s performance can be released yet.

A proposal to restore dialogue and transparency

Although Schiarizzi admitted that he did not expect the acceptance of his proposal, his main goal was spark a debate AND gain more transparency. According to him, it is not about canceling GCP, but about putting it back on track. In an amendment to his motion, he also noted that GCP board members had informed him that a The official start date of the program will be submitted to the DAO soonindicating that the true beginning of the GCP has not yet taken place.

The essence of its approach is therefore to re-establish a transparency framework in line with the original commitments made during the June vote. Schiarizzi he insisted that his aim was not to sabotage GCP, but to sabotage it remind DAO and program managers transparency obligations to which they have committed themselves.

The DAO challenge: governance and accountability

This situation emphasizes challenges associated with managing a DAO. One of the central points of criticism is management of such large funds ($120 million) by a small group within a 3/5 multisig wallet, a structure that allows only three out of five signatories to authorize transactions. The lack of public communication and visibility of progress has deepened the frustration of DAO members who are encouraged to actively participate in decision-making.

IN DAODecentralization of administration is an ideal that must be accompanied by transparency and rigorous monitoring of community-funded projects. Case arbitration court and GCP shows how the success of initiatives depends on the ability to respect these fundamental commitments.

Conclusion: a moment of reflection for the Arbitrum community

Motion to withdraw funds from Schiarizzi at this point it has achieved its main goal: notify the community about GCP delays and the need greater transparency. If the project manages to correct its trajectory by providing the expected clarifications, it could still achieve its initial ambitions. However, this episode highlights the critical importance of communication, transparency and effective resource management in DAO projects, which are key principles for maintaining trust and engagement within the community.

The article Arbitrum DAO Member Proposes Withdrawal of $120 Million ARB from Gaming Program appeared first on Coin Academy

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