The ApeCoin community looks set to stay on Ethereum – for now


The ApeCoin Community is considering a potential departure from Ethereum after a tumultuous token launch in March.

Dubbed ApeCoin Improvement Proposal (AIP) 41, the vote asks token holders, many of whom are also Bored Ape Yacht Club (BAYC) NFT owners, may they agree with Yuga Lab’s comment to launch a proprietary community-only blockchain.

The idea came after the initial fall of ApeCoin. As demand for the token skyrocketed, gas fees on Ethereum skyrocketed, making the number two crypto network prohibitively expensive for many users.

“We are sorry to have turned off the lights of Ethereum for a while,” said the company behind the popular NFT collection tweeted after the ApeCoin airdrop. “It seems quite clear that ApeCoin will need to migrate to its own chain to scale properly. We would like to encourage the DAO to start thinking in this direction.

Yuga Labs’ suite of creations includes the BAYC Collection, Mutant Ape Yacht Club (MAYC), and Bored Ape Kennel Club (BAKC). All of these projects currently exist on Ethereum.

The community now votes on whether they should indeed migrate, as encouraged by Yuga Labs.

What’s in the ApeCoin proposal?

Specifically, AIP-41 states that “at least for now, ApeCoin should remain in the Ethereum ecosystem and not migrate elsewhere to an L1 chain or sidechain not secured by Ethereum.”

Votes are then drawn from ApeCoin holders who agree or disagree with this statement.

“First of all, my main concern is that migrating to another channel is a very complex decision and should not be rushed,” said the co-author of the proposal. Matt Galligan Told Decrypt. “I think staying within Ethereum gives ApeCoin the strongest security model.”

The vote so far has been strongly one-sided, with almost 91% of ApeCoin holders backing the proposal.

Only 9% of holders voted against the proposal, supporting a migration. Voting will close on June 9, 2022.

“Staying in the Ethereum ecosystem is profitable for APE holders. This is because Ethereum is the financial hub of blockchains. R3RUCHIan ApeCoin holder who voted for the proposal said Decrypt. “Since APE aims to be the currency of the metaverse, it needs to be in the hub.”

If passed, this proposal would bar any future Yuga Labs proposals regarding the migration of ApeCoin for a period of three months from the end of this vote.

After that, however, anything is possible.

And with a little more time to discuss such a transition, perhaps the community will have a change of heart.

“This AIP is basically two things,” Galligan said. “[It’s] a temperature control for the DAO’s desire to stay in the Ethereum ecosystem and [secondly] it’s a three-month deadline to put in place a more diligent governance process for important and probably irreversible decisions.

APE is currently trading at $6.1o, up 0.5% in the last 24 hours, according to CoinMarketCap.

Want to be a crypto expert? Get the best of Decrypt straight to your inbox.

Get the biggest crypto news + weekly digests and more!

Source link


About Author

Comments are closed.