Arbitrum DAO Proposes Full Clawback of Gaming Catalyst Program Funds
A new proposal seeking to reclaim all unutilized and uncommitted funds from the Arbitrum Gaming Catalyst Program (GCP) has been introduced. The proposal, authored by NathanVDH and GFXlabs, aims to preserve governance funds and restore community trust in the wake of what authors describe as management issues.
The GCP was originally approved during a period of optimistic projections that authors now characterize as unsustainable. One of the program's primary backers, Treasure DAO, has already exited the Arbitrum ecosystem, while other key contributors have either resigned or shown reduced commitment to the initiative.
The proposal cites transparency problems as a central concern. Instead of increasing accountability, the GCP has reportedly sought to increase contributor compensation while reducing reporting requirements. This combination of factors has prompted the authors to call for cutting losses and securing remaining funds.
This conflict reflects broader governance challenges facing DAOs today. Arbitrum previously experienced friction when its committee proposed investing $16.5 million in non-native protocols, drawing criticism from members who felt local builders were being ignored. These disputes highlight growing tensions in how DAOs manage their treasuries.
If passed, the proposal would require immediate cessation of non-essential expenditures and return of all unallocated funds to Arbitrum governance. The only exceptions would be for orderly wind-down activities, including up to six months of severance for non-Council contributors.
The proposal also revokes all unvested compensation packages, directing those funds back to Arbitrum governance. Despite these strict measures, authors note the intent is not to punish GCP employees, as evidenced by the severance provisions.
The rationale points to persistent delays in meeting key milestones despite a substantial 225 million ARB allocation. The program has reportedly struggled with:
- Launching transparent reporting processes
- Establishing grant issuance mechanisms
- Maintaining leadership stability following departures of key council members
Security concerns were also raised regarding the substantial funds held in a multisig wallet controlled by a small group. Authors argue that transferring these funds back to the DAO treasury system would better protect collective assets.
