Key Takeaways
- The ApeCoin group is presently voting on whether or not to remain or migrate away from the Ethereum ecosystem.
- Because of the voting energy of three massive APE token holders, the poll is now nearly evenly cut up between these in favor and in opposition to the proposal.
- With three days left till voting closes, ApeCoin’s future on Ethereum stays unsure.
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Voting for the AIP-41 proposal to maintain ApeCoin on Ethereum is now neck and neck after a number of sizeable ApeCoin token holders voted in opposition to the proposal.
ApeCoin Group Cut up On Migration Problem
ApeCoin DAO’s proposal to remain on Ethereum has confirmed far more contentious than it initially appeared.
The vote to maintain ApeCoin on Ethereum is being challenged by just a few whales who need the venture emigrate to its personal blockchain. The poll considerations AIP-41, an APECoin DAO governance proposal created on Might 2 by DAO member ASEC. The proposal suggests ApeCoin ought to keep throughout the Ethereum ecosystem somewhat than migrating to a different blockchain with increased transaction throughput and decrease charges. “Yuga Labs acknowledged in a tweet that they believed ApeCoin wanted to maneuver to its personal chain in an effort to scale,” the proposal learn. “We the ApeCoin DAO consider that, a minimum of in the meanwhile, ApeCoin ought to stay throughout the Ethereum ecosystem, and never migrate elsewhere to an L1 chain or sidechain not secured by Ethereum.”
Whereas the matter initially appeared considerably settled, with an amazing 99.65% of the group supporting the proposal shortly after it went stay on June 3, the vote is now far more balanced three days in. At press time, round 48.22% of APE holders have voted in opposition to the concept of maintaining ApeCoin throughout the Ethereum ecosystem, indicating, a minimum of on the floor, a major shift in sentiment regarding the concern. Nevertheless, beneath nearer inspection, 63% of the votes in opposition to the proposal seem to come back from simply three massive ApeCoin holders, every submitting 404,000, 153,000, and 151,000 APE out of the 1.1 million APE votes in opposition to the proposal.
The ApeCoin DAO votes on governance proposals utilizing its native governance token APE, whereby each token held counts as one vote. Because of this members holding massive quantities of APE have outsized affect over the governance course of creating the chance for a small variety of holders to vote in opposition to the broader group majority.
That being mentioned, Nansen knowledge signifies that the APE token is somewhat evenly distributed amongst holders, with no explicit pockets holding a large quantity of the circulating provide. Solely 4 wallets have greater than 1% of the provision, two of them belonging to the crypto trade Binance. Nevertheless, it’s value noting that even token distribution between wallets doesn’t essentially point out an excellent distribution amongst precise group members, as one entity might management a number of wallets and due to this fact maintain de facto management over the venture by proxy.
At press time, the votes supporting the proposal are main solely by a slight margin, and with three extra days till the poll closes, the venture’s future on Ethereum appears removed from sure.
Disclosure: On the time of writing, the creator of this piece owned ETH and several other different cryptocurrencies.
