Recently, there has been a voting process on whether the ApeCoin DAO (Decentralized Autonomous Organization) needs to stay on the Ethereum blockchain in the highly volatile cryptocurrency market. Approximately, 7.1 million ApeCoin tokens were used in the entire voting process. The NFT marketplace has been experiencing multiple problems in projects developed on the Ethereum blockchain. Thus, one of the top NFT collections known as BAYC (Bored Ape Yacht Club) and the MAYC (Mutant Ape Yacht Club) has decided to shift ApeCoin from the Ethereum blockchain network. But the result of the voting process showed that investors want to stay on the existing blockchain network in the NFT marketplace.
There is a number of issues related to the Ethereum blockchain on this ApeCoin project of BAYC— transaction speed, gas fees, and many more. ApeCoin does not want to suffer from these problems for a long period of time. This may affect the overall performance of the BAYC club in the NFT marketplace. The voting process showed that 1.4 million ApeCoin tokens were in favor of shifting the NFT to a new blockchain as well as 1.1 million tokens were in favor of the Ethereum blockchain.
Millions of APE token holders want this NFT to stay on the existing blockchain network despite all kinds of problems due to the respect towards the legacy as well as the flourishing future. Meanwhile, the Ethereum blockchain is known for shifting from a Proof-of-Work consensus mechanism to a Proof-of-Stake mechanism. These investors want to reap the benefits of the new additional features of Ethereum 2.0 for the NFT to flourish.
Staying on the Ethereum blockchain network seems to be a risky venture for ApeCoin because of the existing issues such as the high cost of transactions on the current blockchain. It does not want an L1 chain and a sidechain that are not secured by the Ethereum blockchain. the transfer will be too expensive as well as risky with the complicated endeavor. Meanwhile, it has been speculated in the NFT marketplace that the current blockchain network can gradually destroy ApeCoin in the nearby future. There is no guarantee that these current issues such as transaction costs, gas fees, scalability, and others will disappear from the blockchain. It will continue to affect transactions based on the NFT— showing failed transactions during the mint as well as the sale of Otherdeed NFT. Thus, voters who were in favor of staying in the same network should have considered the future of ApeCoin.
It must be noted that the Avalanche blockchain network ensured infinite scalability with decreased transaction and gas fees, unlike Ethereum.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.