The ApeCoin community has made a landmark decision to build its ApeChain network on the Arbitrum platform, following a majority vote in favor of the initiative. This move, supported by Horizen Labs, marks a pivotal step in ApeCoin’s journey towards creating a robust decentralized network.

Community Backs ApeChain on Arbitrum

In a democratic display of decentralized governance, the ApeCoin DAO community cast approximately 25 million APE tokens, with 50.35% voting to develop the ApeChain network on the Arbitrum blockchain. The vote, detailed in snapshot #19,095,282, edged out Polygon, which received 32.5% support, showcasing the community’s preference for Arbitrum’s scalability and innovation.

APE Tokens: Fueling Governance and Operations

Offchain Labs, the creators behind Arbitrum, announced on February 15 that APE tokens are set to play a dual role within the ApeChain ecosystem. They will act as both the transactional gas and a governance token, giving holders a significant say in the network’s future. This aligns with Arbitrum’s ethos of on-chain governance, enabling the ApeCoin DAO to introduce additional features effectively.

Horizen Labs’ Commitment to ApeCoin

Blockchain developer Horizen Labs has made its intentions clear in the AIP-378 proposal: to be a steadfast supporter and holder of ApeCoin. The firm envisions ApeChain as a lucrative venture, with the potential to generate significant revenue given the right transaction volume, while also committing to support the network without seeking compensation from the ApeCoin DAO.

Strategic Partnerships and Financial Projections

Horizen Labs’ roadmap for ApeChain has attracted attention and support from notable players in the crypto space, such as NFT marketplace Magic Eden and Darewise Entertainment. The firm’s strategy could lead to an estimated $7 million in annual revenue if ApeChain achieves 1 million daily transactions with a fee margin of $0.02. Yet, the market’s reception remains to be seen, as even Arbitrum has had days with transaction volumes surpassing 1 million, a figure not consistently maintained.

Arbitrum Foundation’s Grant and APE’s Market Performance

As part of the development agreement, the Arbitrum Foundation has pledged grant funding to cover key operational costs for ApeChain, including the Security Council and Block Explorer, for three years. This financial backing is significant as APE’s market value has recently risen by 2.5%, with the token trading at $1.58 at the time of writing, according to CoinMarketCap.

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