How Arbitrage Wins on ApeCoin DAO—And Why Yuga Labs Is All for ‘ApeChain’

After about two years Boring Monkey Boat Club The creator made Yoga Labs Very public opinion that ApeCoin The DAO – the community of holders that manages the token – should consider starting its own chain to avoid it Ethereum Mainnet payments and hacking, called “ApeChain” is finally coming. And it continues Decision Technology.

Wednesday, ApeCoin Dao Voters chose the Ethereum Layer-2 measurement network proposal from Arbitrum creator Offchain Labs and ally Horizen Labs, the first technical partner behind the token's 2022 launch. Commanding more than 50% of token-based votes, Arbitrum's proposal beat out those from other Ethereum scales. Polygon And zkSync.

The administration's vote ended the decision-making phase of a lengthy process that began with discussions among community members and stakeholders and was preceded by a proposal from Polygon Labs and ultimately rejected. A formal request for proposals followed; This week's victory will be completed By Arbitrum Builders.

Why does the monkey ecosystem need its own size network? In the year The 2022 Yuga crowd stabilization comes after sales demand surged. NFT Groundworks for another upcoming Metaverse game sent shockwaves through the Ethereum mainnet. It cost users 157 million dollars in network gas payments Alone.

Just last week, another NFT related to mint other side-This time the free items awarded to legendary players of the Mara game -caused a small amount of frustration in Yuga. Fraud the effort To soften the anger.

The incident reinforced the notion that the Ethereum network is too expensive and too expensive for games and other mass-market applications. Smaller networks can significantly reduce blockchain transaction costs and speed up interoperability, enabling large-scale crypto applications and games.

Now, ApeChain is coming, Offchain and Horizen are targeting a Q2 2024 launch. Executives of both companies said. Decrypt‘s GG said on Thursday that the ApeCoin community has finer details to finalize, but that they are ready to roll out a customizable and cheap Ethereum scale network in the near future.

What helped Arbitrum to win so many votes than the other three proposals?

Horizen Labs VP of Ecosystem Growth Spencer Soloway believes the key is emphasizing the chain's gaming focus as a pay-as-you-go chain. Builders can start. DeFi protocols and other applications on the chain, but the chain is built with video games in mind.

“We strongly believed that for any chain to be successful, it shouldn't be just another generic chain with Monkey branding slapped on it. This made no sense,” he said. “Because it's game-centric and game-forward chaining.”

Yuga's own Another Metrarus game is the most popular project in the board game space. More than 1.25 billion dollars Today's NFT trading price. The company has ventured into other games, including Last year's Dookey DashThat's it Finding a New free-to-play coming soonOther studios are using Monkey assets to create games. Serum city.

Arbitrum's gaming ecosystem has grown since its launch in recent months. Xai, a “Layer-3” gaming network Developed in partnership with Offchain Labs. Recently, the long-term Arbitrum ecosystem project revealed plans to create Treasury A. A wider treasury chain That allows each of the crypto games to start their own chain embedded in it.

According to Steven Goldfeder, co-founder and CEO of Offchain Labs, the arbitrage setup will allow ApeChain to use itself as the management and network payment token ApeCoin. It also allows the DAO to make modifications like others. Enforcement of the creator's royalty payment Enable future technical updates on NFT sales.

“We can put the ApeCoin DAO in the driver's seat and let it make all the chain's decisions,” Goldfeder said. DecryptGG.

Goldfeder and Soloway said the entire voting process — not just the final result — should be seen as a victory for the Ethereum ecosystem. While Yuga Labs calls for a dedicated ApeCoin chain in 2022, the open comment leaves room for other Layer-1 chains to fill that role. But the Ethereum layer-2 ecosystem has grown significantly since then.

“In the monkey community, it's very important to be connected to Ethereum,” Soloway said.

Yuga Labs, which made the ApeCoin DAO decision itself, will eventually adopt and use ApeChain, but that's never been a given—formally, at least.

Due to the decentralized makeup of the ecosystem, ApeCoin DAO is independent from the creator of Bored Up Yacht Club. But Yuga Labs has effectively put the decision on Twitter in 2022 in the hands of The DAO, and after voting closed on Wednesday, the company confirmed it plans to accept the chain.

“Yuga Labs, like other developers in the APE ecosystem, is excited about what can be built on ApeChain.” The company tweeted. Congratulations to Offchain and Horizen.

Before this week's DAO vote closed, Yuga Labs CEO Daniel Alegre spoke to them. Decrypt About some struggles with the Ethereum mainnet. He confirmed that the vote is ultimately in the hands of The DAO, but the company is looking forward to exploring how to leverage the potential benefits of layer-2 scaling.

“Barriers to participate in the low volume of the transaction Web3It's better for everyone involved in this space,” Alegre said. Decrypt. “We are very interested in what innovation L2 can do, and especially in reducing the friction of participation in Web3.”

Edited by Ryan Ozawa.