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Members of Arbitrum’s decentralized autonomous organization (DAO) are debating whether to reclaim funds allocated to develop a gaming ecosystem on the platform, citing concerns over slow progress and a lack of transparency.
On March 24, Nathan van der Heyden, a DAO member, proposed recovering unused funds from the Arbitrum Gaming Catalyst Program (GCP). Launched in 2024, the initiative aimed to make Arbitrum a dominant platform for blockchain-based gaming development.
Van der Heyden explained that the GCP was approved based on overly optimistic projections, which have since proven unsustainable. He stressed the need to wind down the program and recover as much capital as possible to protect the DAO’s funds and restore investor confidence in the DAO’s ability to allocate resources effectively.
Additionally, he pointed out that the GCP had been reluctant to document its activities and had not fulfilled its promises.
Another DAO member seconded that the proposal was divided within the DAO. One member agreed with the need to secure the remaining funds, stating,
“The DAO should step in now and secure what is there and then consider the best way forward.”
While many others supported an immediate fund recovery, some argued that such a move might be counterproductive. One member acknowledged the validity of the concerns but suggested a more gradual approach. They proposed implementing phased clawbacks and more flexible reporting standards to better align the program's activities with the DAO’s goals.
This debate within the Arbitrum DAO highlights broader issues in Web3 gaming, such as market instability and the need for more sustainable investment strategies. While some members advocate for a swift clawback, others favor a more measured approach, emphasizing the importance of constructive dialogue.