October 11, 2023 at 12:02 GMTModified date: October 11, 2023 at 12:02 GMT
October 11, 2023 at 12:02 GMT

Polygon Labs proposes ‘ApeChain’, ApeCoin’s own L2 powered by Polygon

Polygon Labs co-founder Sandeep Nailwal has proposed the ApeCoin DAO should utilise Polygon’s Chain Development Kit (CDK) to create, deploy, and sustain its own network. 

Polygon. Pic: Unsplash

Polygon Labs co-founder Sandeep Nailwal has proposed the ApeCoin DAO should utilise Polygon’s Chain Development Kit (CDK) to create, deploy, and sustain its own network. 

Coined ‘ApeChain’, the network would be a zero-knowledge based Ethereum Layer 2. This venture would come with an annual price tag of around $200,000 to Polygon ($MATIC) for hosting the network, and a proposed $3.35million for a development fund. 

The ApeCoin DAO oversees the cryptocurrency ApeCoin ($APE) and manages the NFT and Metaverse ecosystem created by Yuga Labs, the company behind the well-known Bored Ape Yacht Club and Mutant Ape Yacht Club NFT collections. 

Nailwal’s Polygon-based ApeChain proposal

Polygon’s CDK is open-source and allows developers to build their Layer 2 solutions that are based on zero-knowledge (ZK). These solutions promise reduced fees and quicker transaction finality, leveraging Ethereum’s security protocols.

Nailwal advocates that the ApeCoin DAO should make use of the CDK to develop a unique chain tailored for the ApeCoin system. 

“The ApeCoin community has been aware that ApeCoin will need to migrate to its own chain in order to properly scale since these very words were tweeted by Yuga Labs nearly 18 months ago,” Nailwal wrote on ApeCoin DAO’s governance forum

ApeChain, according to Nailwal, will offer the ApeCoin DAO community a fitting scaling solution. This will be particularly beneficial for dApps.

Nailwal added: “While ApeCoin DAO voted on AIP-41 to keep ApeCoin within the Ethereum ecosystem, the question of an ApeCoin-specific chain is open and remains ripe for decision.”

A development fund for ApeCoin

A $3.35m development fund, sourced from the DAO treasury, has also been proposed. This is intended to accelerate the growth of projects related to ApeCoin.

The fund breakdown includes $3m for starting a development program, an annual $125,000 for two years to the leader who will guide the growth of the ApeCoin ecosystem, and $50,000 in APE tokens as an annual bonus for two years, subject to a one-year lockup.

The main purpose is to build out and improve the ApeCoin ecosystem. 

The post said: “In order to stimulate the growth of the ApeCoin ecosystem, a Development Program is needed to bootstrap ApeCoin-integrated projects (games, experiences, entertainment and consumer applications) and ApeChain public goods (middleware, marketplaces, SaaS and necessary infrastructure).”

Nailwal mentioned that ApeChain could be up and running in approximately 16 weeks, spanning four phases. After launching, the chain would then focus on promotions and continued development phases.

Community responds to ApeChain

Initial reactions from the community appear positive. Members recognize the potential benefits that ApeChain might bring to the future of ApeCoin. One user said: “Going Ape on ApeChain! Sounds good to me.”

Another posted: “I think this is the very infrastructure for the DAO to consider in this market for future growth.”

Yet, there are those who have reservations. Some members questioned the choice of Polygon for ApeChain, suggesting other platforms like Optimism would offer cheaper solutions. 

However, Naliwal argued: “By deploying ApeChain using Polygon CDK, ApeCoin DAO will continue to execute against its mission to scale into a decentralized protocol layer for community-led initiatives that drive culture forward into the metaverse.”