ApeCoin launches testnet for its layer-2 solution ApeChain

ApeCoin’s own network, ApeChain, has launched its testnet, although Yuga Labs co-founder Greg Solano admits there “won’t be much to do” on it initially.

ApeChain, a layer-2 solution incubated by the ApeCoin DAO community, has got its first testnet dubbed Curtis as fans of the Bored Ape Yacht Club (BAYC) collection seek new ways to bring more utility for ApeCoin (APE).

Though no other details were revealed, Greg Solano, the co-founder of Yuga Labs, a firm behind BAYC, said in a follow-up post there “won’t be much to do on testnet yet,” reassuring APE holders though that various decentralized applications that Yuga Labs has been working on for some time now “will all be running on the chain once mainnet is here.”

Amid the news, the price of APE soared by over 3.5% to $0.78, according to data from CoinMarketCap.

The ApeCoin DAO community voted in mid-February to develop the ApeChain network on Arbitrum, with support from Horizen Labs. According to the technical roadmap, APE tokens will serve dual roles as both the gas and governance token for the new network.

The ApeCoin DAO community will also have the authority to introduce additional features, facilitated by Arbitrum’s on-chain governance approach. As part of this initiative, Horizen Labs has pledged to be a long-term supporter and holder of ApeCoin, emphasizing its commitment to “being a long-term holder and supporter of ApeCoin.”

The vision for ApeChain is not only to enhance the utility of the APE token but also to open new monetization channels as Horizen Labs suggests that the ApeCoin DAO 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.

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.