ApeCoin DAO to develop its own ApeChain network on Arbitrum

The decentralized community of ApeCoin has voted for developing the ApeChain network on Arbitrum with support from Horizen Labs.

According to the results of snapshot #19,095,282, approximately 25 million APE tokens have been cast in favor of advancing the ApeChain network on Arbitrum. This represents 50.35% of the voters, with Polygon emerging as the next preferred option, securing 32.5% of the votes.

In an X post on Feb. 15, Offchain Labs, the original developers of the Arbitrum technology, revealed that APE tokens will serve dual roles as both the gas and governance token for the forthcoming network. Additionally, the team highlighted that the ApeCoin DAO community will have the authority to introduce other features, facilitated by Arbitrum’s on-chain governance approach.

In the AIP-378 proposal, Horizen Labs, a blockchain developer, expressed its dedication to becoming a long-term supporter and holder of ApeCoin, emphasizing its commitment to “being a long-term holder and supporter of ApeCoin.”

The firm further suggested that with ApeChain, the decentralized autonomous organization governing ApeCoin could potentially generate $7 million in annual revenue if the network processes 1 million transactions per day, each with a transaction fee margin of $0.02.

However, it remains uncertain whether the future network will witness such high demand, considering that even Arbitrum itself has experienced days with over 1 million transactions, as per data from Arbiscan.

According to Horizen Labs, their strategy for developing the ApeChain network has garnered support from other crypto companies like NFT-marketplace Magic Eden and Darewise Entertainment (a subsidiary of Animoca Brands). The firm added that it “will not seek any form of compensation” from the ApeCoin DAO for the scope of work outlined in its proposal.

As part of the agreement, the Arbitrum Foundation has committed to providing grant funding to cover ApeChain Security Council and Block Explorer expenses for a duration of three years. As of press time, APE has seen a 2.5% increase and is currently trading at $1.58, according to CoinMarketCap data.