Arbitrum’s Gaming Program Faces Scrutiny Over Delays

Arbitrum’s ambitious Gaming Catalyst Program (GCP), which aims to drive gaming ecosystem growth on its Ethereum Layer 2 network. It is under fire from members of its governance DAO. The $215 million initiative, passed in June 2023, was designed to boost awareness and adoption of Arbitrum by developers and players alike. However, the program is now being scrutinized for missed deadlines and lack of communication. Prompting one DAO member to propose a recall of its funding.

Delays and Missed Deadlines

The GCP, funded with 225 million ARB tokens (now valued at $122 million), was intended to roll out several key actions during its first four months—from June 10 to October 10. These included electing permanent council members, issuing requests for proposals (RFPs), opening grant applications, and providing regular updates to the community.

However, according to Arbitrum DAO member and DeFi founder Joseph Schiarizzi (known as @CupOJoseph), the program has fallen short. Schiarizzi claims the GCP has failed to launch a website, issue RFPs, or create grant opportunities as outlined in the original proposal. Additionally, the biweekly updates required by the initiative have not been consistently published. Leading to concerns about transparency and accountability.

Calls for a Funding Recall

Schiarizzi’s frustrations culminated in a proposal to recall 220 million ARB tokens (worth $118.6 million) from the GCP’s multisig wallet and return them to the Arbitrum DAO’s treasury. In his proposal, Schiarizzi stated, “It is unconscionable to continue to allow a 3/5 multisig to hold $120M in ARB when they have failed to meet their agreed-on oversight obligations.”

While Schiarizzi admitted he doesn’t expect the recall proposal to pass. His primary goal is to raise awareness about the GCP’s delays and push for increased transparency. “The ideal solution is the DAO gets the transparency and obligations it set out at the beginning of GCP met,” he said in an interview.

Responses and Justifications

In response, Offchain Labs co-founder and CEO Steven Goldfeder defended the GCP, stating that the biweekly calls have indeed taken place and that the complexity of setting up such a large initiative has led to reasonable delays. “It’s super complicated and won’t happen overnight — legal structure, oversight, hiring, etc. And there are public biweekly status calls,” Goldfeder explained on X.

A.J. Warner, Offchain Labs’ director of partnerships and strategy, added that the program is still being set up and that the foundation is holding all funds until it is fully operational. He clarified that there is no transparency report yet because the GCP has not begun formal performance tracking.

Despite the lack of public updates, GCP council members told Schiarizzi they are planning to formalize a start date soon and will provide updates to the DAO in the coming days.

Pushing for Progress

Although Schiarizzi expressed disappointment in the GCP’s slow progress, he emphasized that his intent is not to cancel the program but to get it back on track. “I didn’t make this post originally because I want GCP to fail or I want to end it; I want it to be a success,” he stated. His goal is to ensure the DAO gets the clarity and commitment originally promised when members voted to approve the program.

As the community awaits further updates from GCP’s council members, Schiarizzi has made it clear that he will not pursue the recall proposal if progress is made soon and updates are posted publicly.