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- The ApeCoin community voted to develop the ApeChain network on Arbitrum, supported by Horizen Labs, marking a significant step in expanding the Ape ecosystem.
- APE tokens will serve as gas and governance tokens on the new network, aiming to boost operational efficiency and community governance.
The ApeCoin community has cast its votes, choosing Arbitrum as the foundation for the new ApeChain network. This decision was made following a community vote of approximately 25 million APE tokens, showcasing the majority’s preference for Arbitrum over other contenders, with Polygon being a notable runner-up.
Congratulations to @apecoin DAO on its decision to develop ApeChain utilizing the Arbitrum tech stack!
With $APE serving as both the gas and governance token for ApeChain, Arbitrum Orbit's customizability empowers @ApeCoin DAO with true ownership and control over this…
— Offchain Labs (@OffchainLabs) February 15, 2024
The snapshot vote, identified as #19,095,282, saw a narrow victory, with 50.35% of votes cast in favor of Arbitrum over other contenders, notably Polygon. This decision not only highlights the community’s preference for Arbitrum’s technological framework but also sets the stage for ApeCoin to leverage its dual-role functionality as both a gas and governance token within the new network.
ApeCoin DAO will utilize the Arbitrum technology stack to develop ApeChain, build ApeChain as the Arbitrum Orbit chain developed using AnyTrust technology, and use APE as the gas and governance token. The ApeCoin community will have the option to implement upcoming features such…
— Wu Blockchain (@WuBlockchain) February 15, 2024
Arbitrum, developed by Offchain Labs, is recognized for its compatibility with the Ethereum Virtual Machine (EVM), which facilitates lower transaction fees, enhanced scalability, and censorship resistance. These features are crucial for the ApeChain network’s ambition to support various applications, including NFTs, gaming, and decentralized finance (DeFi), thereby broadening the Ape ecosystem’s appeal and utility.
The collaboration with Arbitrum marks a significant step towards the realization of the ApeChain network. APE tokens are set to undertake a dual role within this new ecosystem, functioning as the gas for transactions and as a governance token. Moreover, this integration underscores the ApeCoin DAO’s commitment to leveraging Arbitrum’s advanced on-chain governance capabilities to further democratize decision-making processes within the network.
Economic Implications and Strategic Partnerships
Horizen Labs, a key player in blockchain development, has pledged its support for ApeCoin through the AIP-378 proposal. With projections suggesting the potential for generating $7 million in annual revenue from transaction fees alone, the network’s financial viability appears promising. However, achieving this goal depends on reaching a daily transaction volume of 1 million, a target underscored by Arbitrum’s transaction data, which has occasionally surpassed this threshold.
The development of ApeChain on Arbitrum has sparked optimism, as indicated by a modest uptick in APE’s market price. This enthusiasm partly stems from the potential for ApeChain to drive increased adoption and transaction volume. The success of this initiative could set a precedent for other DAOs, encouraging the adoption of layer-2 solutions to enhance scalability and efficiency within the crypto ecosystem.
Strategic partnerships play a crucial role in the ApeChain network’s development strategy. The collaboration with NFT marketplace Magic Eden and Darewise Entertainment, a subsidiary of Animoca Brands, expands the network’s ecosystem. These partnerships and Horizen Labs’ commitment to not seek compensation from the ApeCoin DAO lay a solid foundation for sustainable growth. Additionally, the Arbitrum Foundation’s pledge to cover Security Council and Block Explorer expenses for three years further solidifies the network’s financial and operational framework.
As the project progresses, the crypto community’s attention is firmly on the potential for ApeChain to enrich the Ape ecosystem, offering new opportunities for engagement and innovation. This support, coupled with ApeCoin’s recent market performance, showed a 6.39% increase in value, trading at $1.66 at the time of reporting. This underscores the optimistic outlook for the ApeChain network.
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