ApeCoin Has Reportedly Submitted A Proposition Asking If It Should Continue On The Ethereum Network
ApeCoin (APE), an ERC-20 token, has submitted a proposal requesting if it should stay on the Ethereum network weeks after the Otherside failed at launch.
Being a multi-utility and governance token, ApeCoin has served as a means of incentivization and empowerment in its ecosystem for its investors and describes itself as
a decentralized protocol layer for community-led initiatives that drive culture forward into the metaverse.
ApeCoin holders are granted the right to decision-making and governance on the protocol’s DAO, thereby making them active participants in the daily running of the network.
ApeCoin is the native token of Yuga Labs, a crypto firm that houses top NFT collections like Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and the recent addition, Meebits, and CryptoPunks, which was acquired from Larva Labs in March. The ecosystem is run by the coin holders who vote in “the board,” an administrative arm of the protocol that’s in charge of bookkeeping and overseeing the function of the network. This board consists of FTX‘s venture leader Amy Wu, Reddit co-founder and Executive Chairman Alexis Ohanian, Animoca Brands’ Yat Siu, Dean Steinbeck of Horizon Labs, and Sound Ventures’ Maaria Bajwa.
The Otherside and Otherdeeds Catastrophe
The Otherside project, backed by Yuga Labs and Andreessen Horowitz (A16z), is a digital land plot on the metaverse. The launch was highly anticipated, which led to an astronomical increase in gas fees from a bit of cost to more than $3000 and congestion on the Ethereum network by the night of the mint. Otherside investors wasted a little over $100 million during the sale. Yuga Labs later refunded after an apology about “turning off the lights on Ethereum for a while” was tendered on Twitter.
After the incident, the company had proposed migrating to its chain to increase scalability and better network function, which the Ethereum network couldn’t offer the protocol.
Ava Labs, an Avalanche-based firm, had recently proposed to ApeCoin DAO how the ecosystem can benefit from Avalanche’s speedier and cheaper transactions. Also, Along with it comes the network’s unique “subnets” feature, which is already set for game launches.
Moreover, in addition to the network benefits, Ava Labs has also proposed technical support, potential funding, and marketing & educational initiative. Also, with the migration, the coin will have an additional use case helping its market and regulatory stance.
ApeCoin’s Proposal to Remain On Ethereum’s Network
Notwithstanding the scalability issues, Ethereum has proven to be one of the most reliable and secure networks for builders and developers. ApeCoin’s decision to migrate to its network might be a longer route to achieve the sort of growth it is aiming for, especially as Ethereum is set to change from Proof-of-Work to Proof-of-Stake, making it highly versatile and cheaper.
Another alternative is Layer 2 solutions, like Immutable X, which recently submitted a proposal to the ApeCoin DAO offering its network. Immutable X is a layer two platform for NFTs on the Ethereum blockchain and the first of its kind. Its benefits include instant trade confirmation and extremely cheap gas fees for NFT transactions. The chain users can easily design, build and transact NFTs without compromising the security of their assets.
The functionality of Immutable X is based on an engine called Zero-Knowledge Rollup, which it depends on to achieve scalability. It is said to handle up to 9,000 transactions per second. Immutable X has raised over USD 280M at a $2.5B valuation. The many top blockchain games and projects that have been built on Immutable X include Illuvium, EmberSword, Gods Unchained, Guild of Guardians, TikTok, GameStop, DC Comics, etc.
Whether ApeCoin would consider this protocol as it chooses to remain on Ethereum is not a known fact yet, but we look forward to the outcome of their proposition.