ApeCoin DAO formally decides to stay within the Ethereum ecosystem

Following a six-day snapshot voting period, the final results show that 53.62 % of ApeCoin participants choose to stay on Ethereum in the medium term, with 7.1 million APE tokens cast in total.
ApeCoin DAO, a governance system serving the democratic rights of ApeCoin holders — a digital asset linked to the Bored Ape Yacht Club ecosystem — published an official proposal on May 2 to debate whether the asset should remain on Ethereum, transition to a layer-2 alternative, or possibly investigate chain migration.

The ApeCoin improvement proposal (AIP) titled “AIP-41: Keep ApeCoin within the Ethereum ecosystem” was written by BAYC 2491, also known as ASEC, and was inspired by a number of events, including the tumultuous Otherdeed mint and following Yuga Lab’s response.

The disastrous repercussions of Yuga Labs’ Otherdeeds metaverse land sale called into question the financial constraints of Ethereum’s gas price mechanics, prompting ApeCoin’s senior members to express their concerns about ApeCoin’s fixed supply contract and scalability possibilities.

The overwhelming deflation of the gas wars, as well as the lack of financial inclusion or integrity, were then exacerbated by Yuga Labs’ ill-advised tweet  “it seems abundantly clear that ApeCoin will need to migrate to its own chain in order to properly scale”,  insisting that and that “we’d like to encourage the DAO to start thinking in this direction.”

Despite Yuga Labs’ pleading, AIP-41 strongly opposed the relocation from Ethereum, claiming that “such a decision is currently too hard and costly to make,” and that it might jeopardize their deep-rooted presence on the network with the highest volume and cultural adoption of NFTs.

“We, the ApeCoin DAO, feel that ApeCoin should, at least for the time being, remain within the Ethereum ecosystem and not migrate elsewhere to an L1 chain or sidechain that is not secured by Ethereum.”

The proposition received 3.8 million votes in favour and 3.3 million votes in opposition, for a 53.62% split. This conclusion is not final, and additional ideas can be submitted during a three-month grace period to be reconsidered.

ApeCoin DAO formally decides to stay within the Ethereum ecosystem

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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