ApeCoin DAO supports staying in the Ethereum ecosystem

ApeCoin DAO, a governance system that serves the democratic rights of ApeCoin holders — a digital asset tied to the Bored Ape Yacht Club ecosystem — released an official proposal on May 2 to discuss whether the asset should Stay on Ethereum, transition to layer 2 alternatives, or explore the possibility of a chain migration.

The ApeCoin Improvement Proposal (AIP), titled "AIP-41: Keeping ApeCoin in the Ethereum Ecosystem," was written by BAYC 2491 (known as ASEC) and draws inspiration from a series of events, including the tumultuous Otherdeed minting and Subsequent Yuga Labs response.

The disastrous aftermath of Yuga Labs’ Otherdeeds metaverse land sale cast a strong scrutiny on the financial constraints of Ethereum’s gas mechanism and prompted key members of the ApeCoin community to express their concerns about ApeCoin’s fixed supply contracts and scalability potential.

The massive deflationary effects of the gas wars, and lack of financial inclusion or integrity, then furthered Yuga Labs' poor calculations, insisting that "it is clear that ApeCoin needs to migrate to its own chain to scale properly," and that "our Hopefully encouraging DAOs to start thinking in this direction."

Despite Yuga Labs' pleading proposal, AIP-41 strongly opposes migrating from Ethereum, saying that "such a decision at present is too complex and costly" and may harm their network on the largest number of NFTs and cultural adoption ingrained existence. .

“We at ApeCoin DAO believe that, at least for now, ApeCoin should stay in the Ethereum ecosystem instead of migrating to L1 chains or sidechains that are not secured by Ethereum.”

The total number of votes for the proposal was 3.8 million in favor and 3.3 million against, accounting for 53.59%. This result is not entirely conclusive, and new proposals can be submitted for further consideration within a three-month grace period.