On May 2, ApeCoin DAO, a governance system that protects the democratic rights of ApeCoin holders – a digital asset linked to Bored Ape Yacht Club Ecosystem – Published an official proposal. This Discussed whether the asset should remain on Ethereum, migrate to a layer-2 option, or consider on-chain migration.
The final findings show that 53.59% of ApeCoin participants prefer to stay on Ethereum in the medium term future. It is based on 7.1 million APE tokens cast during the six-day snapshot voting period.
Votes dropped from a high level of support (in favor of the Apekcoin DAO being on Ethereum) to less than 60%. At press time, 45.10% of Apcoin holders opposed the plan to remain exclusively on Ethereum instead of migrating to other networks.
Ethereum gas fee is giving worry
“AIP-41: Keep Appcoin within the Ethereum Ecosystem” was written by Apcoin Improvement Proposal (AIP) BAYC 2491, also known as ASEC. It was inspired by the turbulent Atherdid Mint and Yuga Labs’ reaction.
Following the launch of Otherside NFT, Era Labs began a network outage on Ethereum, with sky-high gas charges reaching $175 million. This prompted the BAYC developer to indicate that ApeCoin would need to be moved to its chain.
On the other hand, the community is ready to stay on Ethereum for some legitimate reasons, as well as the fact that The DAO does not want to be separated from the profitable Era Labs. Especially since its NFTs are mainly stored on Ethereum. This is why AIP-41 passionately advocates against migration from Ethereum, saying –
“Migrating to a different series is a costly, risky and complicated endeavor with many moving parts that, if not treated carefully, can result in catastrophic losses, or at worst, Era Labs and other entities.” We ApeCoin DAO believe that, at least for the time being, ApeCoin should remain within the Ethereum ecosystem, and elsewhere in the L1 chain or sidechain Should not migrate that is not secured by Ethereum.”
The motion for a 53.59% split received 3.8 million votes in favor and 3.3 million votes against. This result is not final and may be reconsidered by submitting fresh suggestions within the grace period of three months.
Other Alternatives to Apcoin
While the proposal only seeks votes to keep AppCoin on Ethereum, it does not rule out the option of moving to the Ethereum layer two network. It will still benefit from the security of the mainnet.
According to the proposal, few projects succeed in transitioning away from the Ethereum blockchain. And, future AIPs could be used to scale such a transition to L2.
While the Apcoin community is still in limbo, Avalanche was recommended last month That the ApeCoin DAO be added as a subnet to their blockchain. While Avalanche subnets promised infinite scalability as well as other benefits such as reduced gas rates and transaction throughput, Ethereum’s inertia reigns supreme.
After the sell-off panic subsided on May 12, ApeCoin hit a low of $4.93. Buyers jumped briefly as a result of the severely oversold area, leading to a 104% recovery to $9.82.
This swing from $4.93 to $9.82 became a trading range that ApeCoin has been in for over three weeks. The APE has recorded consistent low highs during this consolidation, with no bulls to counter the free rein of the bears.
As a result, the APE broke the midpoint of the range at $7.37, turning it into a resistance level. This action prompted consolidation, which resulted in the formation of a new support level at $6.01. It was violated only on 8 June.
Now that ApeCoin price is hovering below the above level, expect it to go down and go down to the $4.93 range before any buyers enter the market. Consequently, investors can expect a 15% decline in APE over the next few days.
