The group managing ApeCoin, a decentralized autonomous organization (DAO), has decided to create ApeChain, a gaming-focused platform, on Arbitrum. Arbitrum is a popular Ethereum scaling solution.
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ApeChain will operate as a Layer 3 network and will be controlled by Ape holders. Additionally, the Ape token will serve as a means to pay for transaction fees on the platform.
ApeCoin DAO Chooses Arbitrum for ApeChain Infrastructure
Steven Goldfeder, co-founder of Offchain Labs, expressed their commitment to supporting the ApeCoin DAO in realizing its vision for ApeChain by providing the necessary infrastructure.
The announcement led to a 5% surge in APE token value, offering a welcomed break for a token that had been experiencing a consistent downtrend since its launch almost two years ago. Over the past week, APE has seen a 16% increase in value.
Last month, the ApeCoin DAO embarked on a mission to develop its dedicated blockchain, aiming to boost efficiency and lower transaction costs within the APE ecosystem. Gas fees on the Ethereum mainnet had posed adoption challenges for ApeCoin, which operates as an ERC-20 token.
After considering proposals to build ApeChain on various platforms, including Arbitrum, Optimism, and skSync, the DAO settled on AIP-378, a collaborative proposal by Horizen Labs and Offchain Labs.
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ApeChain will be developed on Arbitrum Orbit, a platform allowing the creation of customized Layer 3 appchains atop Arbitrum’s One and Nova Layer 2 network. The high throughput capabilities of Orbit chains align with the DAO’s vision of establishing a Web3 gaming platform.
Furthermore, the ApeChain roadmap includes plans to implement APE as an omnichain fungible token (OFT) powered by LayerZero, providing the token with cross-chain functionality.
Controversy Surrounds ApeChain Proposal Outcome
Despite the passing of AIP-379 with slightly over half the votes in favor, many community members expressed dissatisfaction with the result, particularly due to the significant influence of Horizen Labs, the primary author of the winning proposal.
Some community members, like Bunny, sarcastically congratulated Horizen Labs for essentially voting for themselves and securing victory in the Ape Chain proposal.
Others went further, accusing the upper ranks of the DAO of engaging in self-serving actions, raising concerns about potential conflicts of interest.
Horizen Labs’ involvement in developing APE staking had previously drawn criticism for its execution, adding to the discontent surrounding its significant influence in the ApeChain proposal.
Despite the outcome, supporters of the competing A-Team, which received 11% of the votes, remain committed to their plan to develop an Optimism-based solution, potentially leading to the existence of two competing ApeChains in the future.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
