Polygon Labs Co-founder Proposes ApeCoin DAO to Build its Own Ethereum Layer 2 Network
Sandeep Nailwal, co-founder of Polygon Labs, has put forward a proposal for the ApeCoin DAO governance community to develop, deploy, and maintain its own zero-knowledge powered Ethereum Layer 2 network using Polygon’s Chain Development Kit (CDK). The plan involves launching a dedicated network called “ApeChain” with an annual cost of around $200,000 from the ApeCoin DAO. Additionally, a development fund worth $3.35 million would be created from the DAO treasury to support ApeCoin-related projects with assistance from Polygon Labs.
The ApeCoin community has recognized the need for ApeCoin to migrate to its own chain in order to scale effectively. While the community voted on keeping ApeCoin within the Ethereum ecosystem, the decision of having an ApeCoin-specific chain is still open for discussion.
ApeCoin and its Relationship with NFTs and Yuga Labs
ApeCoin (APE) is a cryptocurrency associated with a DAO that oversees the NFT and metaverse ecosystem created by Yuga Labs. This includes popular NFT collections like Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC). Initially, ApeCoin was distributed through an airdrop to BAYC and MAYC members. While it has connections to these NFT collections and Yuga Labs, it operates under the governance of the ApeCoin DAO.
ApeChain Benefits for the Ecosystem
Nailwal believes that ApeChain would provide the ApeCoin DAO community with an appropriate scaling solution for games and consumer applications. It would also offer sequencer fees and staking rewards for validators on the network. ApeChain would gain interoperability with Polygon’s suite of solutions, including Polygon PoS, zkEVM, and Miden, enabling it to be used by various dApps across the Polygon architecture.
Costs and Timeline
In addition to the $200,000 annual costs for deploying and maintaining ApeChain, the proposal seeks $3.35 million in funding for an ecosystem development fund. This fund includes $3 million for a development program, $125,000 annually over two years for an ecosystem development lead, and $50,000 in APE tokens as an annual bonus. The implementation of ApeChain could take up to 16 weeks, followed by promotional and ongoing development stages.
Other Layer 2s using Polygon’s CDK
Polygon’s CDK is already being used to develop other Layer 2 solutions such as Immutable zkEVM, IDEX, Palm Network, and Astar zkEVM. Nailwal has recently proposed that Polygon Labs could also assist in Celo’s migration to an Ethereum Layer 2 using the CDK.
Hot Take: ApeCoin DAO Explores Building its Own Ethereum Layer 2 Network
The ApeCoin DAO is considering the development of its own Ethereum Layer 2 network called ApeChain. With support from Polygon Labs and utilizing Polygon’s Chain Development Kit (CDK), this initiative aims to provide scalability and interoperability benefits to the ApeCoin ecosystem. By creating a dedicated chain, ApeCoin can better cater to games and consumer applications while offering rewards for validators. The proposal also includes a significant funding plan for ecosystem development. This move highlights the growing interest in Layer 2 solutions and showcases the potential of blockchain technology in facilitating community-led initiatives.
By
By
By
By
By