- The ApeCoin community is currently voting on whether to stay in the Ethereum network despite recent gas fee issues.
- The proposal argues leaving Ethereum would separate ApeCoin from the rest of Yuga Labs’ network of products, including the Bored Ape Yacht Club NFTs.
- The debate comes after Yuga Labs’ Otherdeeds land sale cost minters more than $177 million in fees.
A new proposal by the ApeCoin DAO to stay on Ethereum has gained overwhelming community support. It comes as a response to Yuga Labs’ suggestion that ApeCoin should migrate to its own chain for scaling purposes.
Leaving Ethereum Would Be “Catastrophic”
The ApeCoin community is currently voting on a new proposal to stay on Ethereum despite the project’s recent difficulties with gas fees.
The proposal, which was submitted on May 1 by ApeCoin DAO member ASEC, states that “migrating to a different chain is a costly, risky, and complex endeavor with many moving parts that may, if not thoughtfully considered, result in catastrophic loss, or at worst, abandonment by Yuga Labs and other entities that would otherwise [be meaningful] to ApeCoin.”
Yuga Labs, the company behind the popular Bored Ape Yacht Club NFT collection and Otherside Metaverse project, posted on Apr. 30 that it was “abundantly clear that ApeCoin… need[ed] to migrate to its own chain” following the enormous spike in gas prices during the Otherdeeds land mint. While the company raked in over $310 million from the sale of its plots, minters ended up paying over $177 million in fees and clogging up Ethereum.
Avalanche was prompt to respond by offering the ApeCoin community to migrate to an Avalanche subnet, which it claimed would increase speed, reduce gas fees, enable a better user experience, and accrue value to the APE token. The proposal was shared by Avalanche Labs founder and CEO Emin Gün Sirer on Twitter, who commented that “ApeCoin would be fantastic as an Avalanche subnet.”
However, the ApeCoin community doesn’t seem interested. The proposal to stay on Ethereum currently has 99.65% of votes in favor and 0.35% of votes against, though only about 340,000 ApeCoin tokens have been committed so far out of a supply of 1 billion.
The proposal notably suggests using an Ethereum Layer 2 as a solution to gas fees, arguing that moving away from the chain upon which Yuga Labs’ NFT projects reside would be detrimental to ApeCoin in terms of liquidity, security, and network effects. It points to Optimistic Rollups (such as Optimism and Arbitrum) or ZK-Rollups (such as Starknet or zkSync) as potential new ideas to keep ApeCoin in the Ethereum ecosystem.
One possible solution for the ApeCoin community is Immutable X, which officially submitted a proposal on the ApeCoin Governance Forum on May 25 for the project to migrate to its Layer 2. Immutable X specializes in scaling NFTs with strong liquidity and has already attracted top blockchain games such as Illuvium, EmberSword, and Gods Unchained. The proposal was well-received by the community on the ApeCoin Forum.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
Avalanche Wants Otherside to Ditch Ethereum for a Subnet
Avalanche has submitted a proposal to ApeCoin DAO, suggesting it migrates the APE token and builds the Otherside Metaverse on an Avalanche Subnet. Avalanche Suggests Otherside Migration Avalanche has invited…
ApeCoin DAO Reportedly in Talks With Avalanche, Flow
ApeCoin DAO and Yuga Labs are reportedly in talks with both Ava Labs and Flow Foundation as they explore a possible move away from Ethereum. ApeCoin Weighs Scaling Options In…
ApeCoin at All-Time Highs Ahead of Otherside NFT Drop
Yuga Labs’ ApeCoin is trading at all-time highs ahead of the Otherside NFT sale scheduled for Saturday. While unconfirmed, the NFTs are suspected to be land parcels for the Otherside…