ApeCoin DAO has decided to develop its own ApeChain network on the Arbitrum platform, which is a significant step towards autonomy and expanding the functionality of APE tokens. This development promises significant revenue and contributes to community governance. Approximately 25 million APE tokens, representing 50.35% of the votes, were allocated for development on Arbitrum, while Polygon received 32.5% of the votes. Thus, Arbitrum was chosen as the platform for this ambitious project.
The creators of Arbitrum, Offchain Labs, announced that APE tokens will serve a dual role in the new network: they will be used as gas for processing transactions and operations on the network, as well as granting voting rights to their owners. This strategic decision leverages advanced blockchain governance mechanisms on Arbitrum, providing the ApeCoin DAO community with significant control over the future and integration of network features.
Horizen Labs, a project partner, stated their intention to be a long-term supporting participant and holder of ApeCoin. They anticipate that the ApeChain network could generate $7 million in revenue per year if it processes 1 million transactions per day at a price of $0.02 per transaction. While these figures are speculative and depend on the network's ability to attract a large volume of transactions, they underscore the financial viability and potential profitability of the ApeChain initiative.
The ApeChain development strategy has already garnered support from prominent entities in the crypto space, including the NFT market Magic Eden and Darewise Entertainment, a subsidiary of Animoca Brands. Additionally, Horizen Labs has pledged not to require compensation from ApeCoin DAO for their work on the project, emphasizing their commitment to the network's success. The Arbitrum Fund has also agreed to provide grant funding to cover ApeChain Security Council and Block Explorer expenses for three years, further ensuring project sustainability.
ApeCoin DAO's decision to develop the ApeChain network on Arbitrum marks a pivotal moment in the organization's history. The use of APE tokens for both transactions and governance promises to enhance their utility, strengthen the community, and potentially unlock significant revenue streams. With the support of Horizen Labs and other key players in the crypto ecosystem, ApeChain is poised to have a substantial impact on the DeFi and blockchain landscape, offering a promising future for ApeCoin holders and the wider community.
