Is Bored Ape Yacht Club ecosystem migrating to other Layer 1s plausible? Avalanche and Flow both show keen interest.
Bored Ape Yacht Club's Otherside land auction initially saw gas fees skyrocketing to as high as $100 million due to overwhelming demand during its minting. In response to this phenomenon, Yuga Labs has indicated that they will urge ApeCoin DAO to consider the possibility of establishing their own dedicated chain for the ecosystem, with recent developments in this matter.
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Bored Ape Yacht Club Explores Moving to Other Layer1 Chains
The hope was that those challenges would be assuaged via a rigorous gating mechanism in the form of an on-chain KYC, a max mint of 2 per KYC'd wallet, and a significant clearing price at 305 ApeCoin.
— Yuga Labs (@yugalabs) May 1, 2022
According to a report by CoinDesk, the board of ApeCoin DAO did not consider moving to other Layer 1 blockchains before this event. It was only after a call from Yuga Labs that discussions among DAO members began. However, the board was not very proactive about it. If the relevant proposal is passed within the DAO, the board will responsibly handle the matter.
According to CoinDesk, two blockchains, Avalanche and Flow, have been discussed with ApeCoin DAO:
1. Avalanche
Kevin Sekniqi, CEO of Ava Labs, has stated that they have had preliminary discussions with ApeCoin DAO regarding a subnet and are prepared to make a proposal.
If ApeCoin DAO chooses Avalanche, it would allow its entire ecosystem to operate within its own subnet without affecting the entire network due to heavy transaction activity. Avalanche also launched a $290 million subnet incentive program in March this year.
2. Flow
With experience from NBA Top Shot, Flow has demonstrated the ability to process tens of thousands of transactions daily. Mik Naayem, CEO of Dapper Labs, the company behind Flow, has mentioned some communication with the ApeCoin DAO board, but the outcome will depend on the DAO's proposal vote.
Pros and Cons of Moving to Other Chains
If ApeCoin DAO's proposal to migrate to other Layer 1 blockchains is approved, it will undoubtedly enjoy faster transaction speeds and lower fees. However, one drawback is that its assets worth hundreds of millions of dollars are currently on Ethereum, and adapting and migrating to other chains will be a significant challenge.
In addition, last year's popular play-to-earn game Axie Infinity moved to the Ronin sidechain due to network congestion issues, resulting in a $625 million loss from a hack. If the Bored Ape ecosystem moves to other chains, it will be crucial to develop strategies to prevent similar problems.