A post-Ethereum future? – Following the catastrophic mint of the NFTs of the lands of Yuga Labs’ “Otherside” metaverse, the team is considering a migration. Indeed, the board members of the ApeCoin DAO linked to the Bored Ape Yacht Club study the offers for the migration of ApeCoin. It is currently running on the Ethereum blockchain. The mint of the “Otherdeed” plots had cost over $100 million in transaction costs to investors.
ApeCoin will catch up to branches on another blockchain
According to the managers of the companies concerned, the two main contenders are Avalanche and Flow. Both blockchains consider themselves suitable to host an ecosystem NFT like the one Yuga is building. Yuga Labs first hinted at a potential ApeCoin migration in a May 1, 2022 Twitter thread. In this tweet, they encourage the Decentralized Autonomous Organization (DAO), made up of APE holders, to seriously consider this possibility.
Initially, the board did not consider migrating to another layer 1. However, the tweet reportedly sparked a discussion among DAO members about a potential move. These talks are still ongoing. The DAO board does not “actively seek” new blockchains. However, he wants to implement the wishes of users. Therefore, if a migration were to be voted, they will have to comply with it.
The benefits if Yuga Labs moves its ecosystem to its own blockchain are obvious. Lower transaction costs, a faster network and the ability to pay gas fees in APE are valid arguments. Unfortunately, the potential problems that could arise in the event of migration are just as obvious. What would the company do with all of its existing assets on Ethereum ? They total over $1 billion in market capitalization at present.
Even with its own blockchain, many complications could persist. The popular play-to-earn Axie Infinity is a perfect example. No need to come back the $625 million feat on his Ronin network. Finally, the decision regarding the migration of this entire ecosystem will be made by the members of ApeCoin DAO. While Yuga Labs arguably influences decisions, the company says it doesn’t control the DAO.
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AVAX or FLOW for new less expensive antics
In case of moving to Avalanche, the Yuga Labs ecosystem could have its own subnet. On this blockchain, a system makes it possible toisolate single application transactions without clogging the overall network. Avalanche committed $290 million to attract new subnets in March. However, discussions with the project are, for the moment, only at the preliminary stage.
“We had some discussions with [ApeCoin DAO] on the sub-networks and we had prepared our pitch well (…) We have all seen it with the sale of plots, NFT ecosystems of this size must have an evolving environment. »
Kevin Sekniqi, Co-Founder and COO of Ava Labs
Flow’s blockchain offers a similar service. Flow has proven its ability to handle high transaction volumes with NBA Top Shot. The app actually records tens of thousands of transactions every day. Dapper Labs, the company behind Flow, also created the blockchain by necessity. The case is similar to the sale of the Otherside land. The blockchain was born following the famous CryptoKitties debacle which had temporarily choked Ethereum.
“We have had conversations with members of the board of directors [d’ApeCoin DAO]. I think it will come down to a vote (…) CryptoKitties faced similar challenges. I think Flow would be a great home for [ApeCoin]. That being said, there are still plenty of assets on Ethereum and things to consider. »
Mik Naayem, Commercial Director of Dapper Labs
In case of blockchain migration, the ecosystem around Bored Ape Yacht Club could be more fluid. Yuga Labs could also make a good figure and avoid some mishaps. On April 30, 2022, the company had refunded gas costs to anyone who failed to mint an “Otherdeed” NFT.
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