Polygon proposes ApeChain and $3.35m dev fund

Polygon proposed building a dedicated layer 2 network for ApeCoin on the ApeCoin DAO forum on Oct. 10.

According to the proposal, the new network, dubbed “ApeChain”, will leverage zero-knowledge technology to offer fast, cheap, and secure transactions for ApeCoin and its ecosystem.

ApeChain will be developed and maintained by an implementation partner with expertise in web3 infrastructure and tooling products. The proposal also suggests collaborating with Polygon Labs, the innovation arm of Polygon, to access its resources and network.

The proposal also includes creating a development fund of $3.35 million from the ApeCoin DAO treasury to support the growth of APE-related projects, such as experiences, entertainment, games, and consumer applications. The development fund will also be used for public goods beneficial for ApeChain, such as middleware and marketplaces.

The initiative highlights the potential of defi (decentralized finance), a novel way of providing financial services without relying on centralized intermediaries but on automated protocols based on blockchain technology. The proposal notes that defi poses severe challenges to investor protection, market integrity, and financial stability and requires close monitoring and regulation.

The project also emphasizes the role of Polygon in advancing the web3 ecosystem and enabling “Internet-scale” blockchain capabilities across various industries and use cases. Polygon’s architecture has supported gaming, loyalty rewards, digital avatars, self-expression, and Web3-native applications such as DeFi and the open metaverse. Polygon has partnered with leading firms like Starbucks, Square Enix, and L’Oreal.

The proposal is open for discussion and voting by the ApeCoin DAO community. If approved, it will mark a new milestone for Polygon and ApeCoin in delivering world-class entertainment and innovation to fans around the globe.