ApeCoin DAO’s Decision to Build ApeChain on Arbitrum
A Strategic Move for Gaming-Focused Blockchain
The ApeCoin DAO has made a significant decision to develop its gaming-centric blockchain, ApeChain, as a Layer 3 network on Arbitrum, Ethereum’s top scaling solution in terms of total value locked. This initiative aims to leverage APE holders for governance and utilize the ApeCoin token for network transaction fees.
Steven Goldfeder, co-founder of Offchain Labs (the company behind Arbitrum), emphasized their commitment to realizing the ApeCoin DAO’s vision for ApeChain, providing necessary infrastructure support.
Following the announcement, APE experienced a 5% increase in value, marking a 16% rise over the past week, offering a much-needed boost to a token that has seen a downward trend since its inception nearly two years ago.
The Journey to ApeChain’s Inception
Addressing Efficiency and Cost Challenges within the APE Ecosystem
Last month, the ApeCoin DAO initiated plans to establish its blockchain to improve efficiency and lower transaction costs. High gas fees on Ethereum’s mainnet have hindered ApeCoin’s broader adoption, prompting the DAO to explore alternatives for ApeChain’s foundation.
After reviewing proposals from various platforms including Arbitrum, Optimism, and zkSync, AIP-378—submitted by Horizen Labs in collaboration with Offchain Labs—was selected to lead the project.
Arbitrum Orbit will serve as the foundation for ApeChain, offering the capability to create customized Layer 3 appchains. This technology aligns with the DAO’s ambition to develop a Web3 gaming platform, promising high throughput and efficiency.
Additionally, ApeChain’s roadmap features plans to implement APE as an omnichain fungible token (OFT) through LayerZero, enhancing its cross-chain functionality.
Governance Controversy and Community Discontent
Debate Over Voting Process and Proposal Selection
The passage of AIP-379 has sparked controversy within the ApeCoin community, primarily due to Horizen Labs, the proposal’s author, casting the largest vote. Criticism has emerged over perceived self-interest and governance issues, with some members expressing dissatisfaction with the decision-making process.
Despite these challenges, the development of ApeChain on Arbitrum represents a pivotal step forward for the ApeCoin ecosystem. However, with plans from the A-Team to develop an alternative chain on Optimism, the community may see the emergence of competing ApeChains in the future.
