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Divided ApeCoin Community Narrowly Approves Proposal to Stay on Ethereum

In a hotly-contested round of voting, the ApeCoin community has voted to stay on Ethereum. But not everyone’s happy.

3 min read
Crypto governance is a key portion of running a Web3 community. Image: Shutterstock.

Following a week-long voting period, ApeCoin DAO’s proposal to stay within the Ethereum ecosystem dubbed AIP-41 has been approved by a fine margin. 

Just over half of all voters supported the proposal, while 46.38% voted against the proposal. A total of 7.1 million ApeCoin (APE) were used in the voting process.

Voting results of AIP-41. Source: Snapshot.

A day after the proposal was launched, only 9% of the votes were against it. 

One member, Machi Big Brother (machibigbrother.eth), voted against the proposal using 1.2 million ApeCoin, representing ~30% of the total votes against the proposal.

Following the approval of AIP-41, no ApeCoin Improvement Proposal (AIP) on the migration of ApeCoin from Ethereum can be proposed for three months.

“Now it’s time for the DAO to get to work on an amendment to the proposal process that is better suited to the complexity of moving ApeCoin to another chain,” Matt Galligan, who co-authored the AIP, told Decrypt.

Divided ApeCoin community

Given the hotly-contested decision, not everyone in the ApeCoin community is content with the outcome. 

Many are worried about the three-month gap until the next proposal, as it may dampen the demand and curiosity surrounding the ecosystem.

This is a cryptocurrency, and pausing any decisions for 3 full months, PLUS the time to vote and actually take action, is anything but simple.tweeted a community member. “This has the ability to completely destroy the value of APE.”

This AIP doesn’t make sense. We should spend time on growth/adoption” tweeted Bradly Zastrow, a community member. “Not passing proposals where we agree to do nothing.”

“I have to admit I’m rather concerned that we, The ApeCoin DAO, collectively voted to preemptively disregard ideas that have not yet been presented” tweeted another community member.

But other users supported the move to stay within Ethereum, including any layer-2 scaling solution associated with the number two crypto network.

“As you said ser! Voted to stay on Eth” tweeted a user who supported the proposal. “Why moving away from liquidity and possibly security?” tweeted another community member.

ApeCoin price action

APE, the governance token underpinning the ApeCoin ecosystem, currently trades at $5.90, down 1.2% over the past 24 hours, according to CoinMarketCap.

The 36th-largest cryptocurrency with a market capitalization of $1.7 billion has shed over 85.21% from its all-time high of $39.40 recorded in March 2022.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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