Quick take:
- Yuga Labs’ ApeCoin DAO is in talks with layer 1 blockchain platforms as it prepares for migration from Ethereum.
- Popular L1 platforms Avalanche and Flow are among the most likely destinations.
- ApeCoin DAO first alluded to a potential migration to a layer1 blockchain on May 1 via a tweet, which attracted a massive reaction from fans.
ApeCoin could soon migrate to a Layer 1 blockchain following the Otherdeeds land sale debacle, which saw investors lose $100 million in gas fees. The oversubscribed NFT sale crashed the Ethereum blockchain prompting backlash from the community.
On March 30, ApeCoin had hinted it might migrate off the Ethereum blockchain to an L1. Although the DAO is yet to confirm reports claiming it is considering offers from leading L1 platforms, CoinDesk pointing out sources familiar with the matter said Avalanche and Flow blockchain, were among the potential destinations.
According to the source, the ApeCoin DAO board had not previously considered migrating to L1 until the May 1 tweet triggered a discussion from the community that leaned towards migrating from Ethereum.
The source clarified that the DAO is not actively looking for a new home for ApeCoin, but will take the wishes of the community into account before deciding on the future. As a result, if the DAO members voted for chain migration, then the board will be obligated to comply.
The ApeCoin DAO board is composed of Reddit co-founder Alex Ohanian, Animoca Brands chairman Yat Siu and FTX’s head of gaming, Amy Wu. Since its creation in March 2022, the DAO has voted on 11 different proposals.
Avalanche, which invested $290 million in subnets in March would allow Yuga Labs’ ecosystem to exist independently on its own subnet, avoiding drawbacks related to clogging of the network.
This would allow massive NFT sales to occur without crashing the network, whilst also lowering gas fees. Kevin Sekniqi, co-founder and chief operating officer at Ava Labs, the parent organisation of Avalanche said: “We’ve had some early discussions with [ApeCoin DAO] about subnets, and we’ve certainly got our pitch ready to go,” CoinDesk reported.
If Yuga Labs pursues the option to move to its own blockchain, this will allow users to transact in its ecosystem token $APE.
However, with a portfolio of about $1 billion worth of Ethereum assets, this could create other problems, like having to rely on bridging protocols, which have recently proved to be hot targets for hackers.
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