ApeCoin DAO (Decentralized Autonomous Organization) members voted to stay on Ethereum, instead of moving to another Layer 1 or Layer 2 blockchain.
The vote passed with a narrow margin as 53.62% voted to stay on Ethereum, with 46.38% against the proposal.
– ApeCoin (@apecoin) June 9, 2022
Only 7.1 million ApeCoin (APE) were used in the voting process, less than 3% of the total circulating supply of over 292 million. However, a few members wielded maximum influence during this week-long voting process.
For example, a member of the DAO who goes by the pseudonym ‘Machi big brother‘ on Twitter, used 1.2 million APE to vote against the proposalI. His vote represented about 17% of the total votes and more than 36% of the votes against the proposal.
Following the approval of the AIP-41 proposal, no further proposals to move ApeCoin to another blockchain can be made for the next three months.
What is all this argument about?
‘AIP-41: Keep ApeCoin in the Ethereum ecosystem’ was proposed on May 2 after Yuga Labs, the creator of the Bored Apes ecosystem, hinted at the need to move to another large-scale blockchain. Yuga Labs tweeted that the ApeCoin DAO needs to start thinking about moving away from Ethereum, which is plagued with gas fee issues.
We are sorry to have turned off the Ethereum lights for a while. 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 Laboratories (@yugalabs) May 1, 2022
Yuga Labs’ comments came after it encountered issues with selling plots of land from its yet to be released Otherside metaverse. The creator of the Bored Apes Yacht Club blamed Ethereum for not being able to keep up with demand.
So, different blockchains started offering a move to their network. The avalanche came first, to propose that not only should ApeCoin be moved to an Avalanche subnet, but even Otherside should also be launched there. The proposal said:
“We propose that ApeCoin DAO launch Otherside on an Avalanche subnet to support future growth of the Otherside community through fast transaction processing, higher throughput, greater ability to scale, and lower gas fees. lower.”
NFTstartup Immutable, which operates the Immutable X network, submitted a similar request proposal a little after.
Then came AIP-41, which stated that ApeCoin should remain on Ethereum, which provides better security and liquidity. The argument against switching to another blockchain was that it would be “too complex and expensive”. The proposal said:
“Migrating to a different chain is an expensive, risky and complex endeavor with many moving parts that can, if not thought through, result in catastrophic loss or, at worst, abandonment by Yuga Labs.”
The community remains divided
While the majority voted for ApeCoin to stay on Ethereum, the community is torn in a debate over whether this was the best move.
Some members of the community have expressed concern that the three-month waiting period before another proposal can be made on the subject may impact demand for the token.
One community member, for example, called the decision “shortsighted”.
This AIP does not make sense
Preemptively excluding a future growth option with an arbitrary time limit seems myopic at best.
But it is also contrary to the DAO philosophy: Build
We should dedicate time to growth/adoption
Do not pass proposals where you agree to do nothing https://t.co/Xz6h6ZMuR0
— BradleyZastrow 🦇🔊 (@ZastrowBradley) June 9, 2022
Another member said the decision to stay on Ethereum could “completely destroy the value of APE.”
This is cryptocurrency, and suspending any decisions for a full 3 months PLUS time to actually vote and act is anything but simple. This has the ability to completely destroy the value of the APE. Imagine if the ETH merger happens and completely shits the bed. Game over.
— Mint | Alternate Act #45427 (@mintycollector) June 6, 2022
At the same time, community members in favor of staying on Ethereum hailed the decision as prudent. Some members commented on the proposal expressing that gas fee issues could be resolved with the impending Ethereum merger.
Even those in favor of switching to another channel are divided in their opinions. Some think it would be better to move to a layer 2 solution, while others suggest moving to a layer 1 blockchain.
ApeCoin is currently the 36th largest cryptocurrency with a market capitalization of nearly $1.7 billion. The token’s price has declined by 3.29% in the past 24 hours, trading at around $5.79, more than 70% below its all-time high of around $25.