Development of ApeChain Network on Arbitrum
The decentralized community of ApeCoin has voted to develop the ApeChain network on Arbitrum, with support from Horizen Labs. In a recent snapshot, around 25 million APE tokens were cast in favor of advancing the network on Arbitrum, representing 50.35% of the voters. The next preferred option was Polygon, securing 32.5% of the votes.
Role of APE Tokens and On-Chain Governance
APE tokens will serve as both the gas and governance token for the forthcoming ApeChain network. The ApeCoin DAO community will have the authority to introduce additional features through Arbitrum’s on-chain governance approach, according to Offchain Labs, the developers of Arbitrum technology.
Horizen Labs’ Commitment and Revenue Potential
Horizen Labs expressed its dedication to becoming a long-term supporter and holder of ApeCoin in the AIP-378 proposal. The firm suggested that with ApeChain, the decentralized autonomous organization governing ApeCoin could generate $7 million in annual revenue if the network processes 1 million transactions per day with a transaction fee margin of $0.02.
Support from Crypto Companies and Funding
Horizen Labs’ strategy for developing the ApeChain network has received support from other crypto companies like Magic Eden and Darewise Entertainment. As part of the agreement, the Arbitrum Foundation will provide grant funding to cover ApeChain Security Council and Block Explorer expenses for three years.
Conclusion: Positive Outlook for ApeChain
The development of the ApeChain network on Arbitrum signifies a positive outlook for APE tokens and their potential utility within the decentralized community. With support from Horizen Labs and other crypto companies, the network has the opportunity to generate substantial revenue. However, it remains to be seen whether the network will experience high demand, considering the transaction volumes of Arbitrum itself. Nevertheless, this partnership sets a promising path for ApeChain’s growth and development.
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