- ApeCoin community chooses Arbitrum to develop ApeChain, with 25 million APE tokens voting in favor, marking a shift.
- Horizen Labs pledges long-term support for ApeCoin, proposing a network that could generate $7 million annually.
The decentralized ApeCoin community has made a decision that marks a turning point in its trajectory: to develop the ApeChain network on Arbitrum with the support of Horizen Labs. The vote culminated with around 25 million APE tokens leaning towards this option, representing 50.35% of the participants.
Polygon came in second, capturing 32.5% of the vote. This election not only defines the future direction of ApeCoin but also highlights its community‘s preference for Arbitrum over other alternatives.
The original developers of Arbitrum, Offchain Labs, have shared key details about the dual role of APE tokens within the future network. They will function not only as a gas token but also as a governance token. This implies greater involvement of the ApeCoin DAO community in decision making, thanks to the blockchain governance approach offered by Arbitrum.
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
Horizen Labs, a well-known blockchain developer, has expressed its commitment to support ApeCoin in the long term, both in token ownership and support.
The AIP-378 proposal underscores the importance of this support and lays out a vision where the ApeChain network could generate annual revenues of up to $7 million, assuming a volume of 1 million transactions per day with a per transaction fee margin of $0.02.
However, questions arise as to whether demand will reach these levels, especially given that even Arbitrum has had days with more than 1 million transactions.
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
Horizen Labs’ strategy for developing the ApeChain network has garnered the backing of major crypto companies, such as NFT marketplace Magic Eden and Darewise Entertainment, a subsidiary of Animoca Brands.
The firm has stated that it will not seek any compensation from the ApeCoin DAO for the proposed work, showing a gesture of goodwill and commitment to the project.
In a supportive move, the Arbitrum Foundation has committed to provide grant funding to cover the expenses of the ApeChain Security Council and the block explorer for three years.
At the time of writing, the APE token has seen a 2.5% increase and is trading at $1.58, according to CoinMarketCap data.
This development is a testament to the dynamism and adaptability of the ApeCoin community, which is constantly seeking to strengthen its position in the crypto world. The move to Arbitrum not only promises to improve ApeCoin’s functionality and efficiency but also opens up new possibilities for growth and expansion.
