The Arbitrum Decentralised Autonomous Organisation (DAO) has greenlit a substantial $222 million funding initiative to bolster the gaming ecosystem within the Ethereum (CRYPTO:ETH) layer-2 network.

This move aligns with a surge in network metrics, including a 30% increase in daily active addresses, indicating robust community adoption.

Spearheaded by the Gaming Catalyst Program (GCP), the initiative aims to enhance user engagement across Arbitrum (CRYPTO:ARB), Orbit, and Stylus gaming communities.

A specialised team, overseen by a council of industry experts, will manage the program, allocating funds to publishers, early-stage developers, and infrastructure-related bounties.

Despite Arbitrum's dominance in the Ethereum layer-2 space, competitors like Base, backed by Coinbase, are emerging with significant growth, surpassing $8 billion in total value locked.