ApeChain, a Layer 2 solution developed by the ApeCoin DAO community, has launched its first testnet, dubbed Curtis.
This initiative seeks to enhance the utility of ApeCoin, particularly for enthusiasts of the Bored Ape Yacht Club (BAYC) collection.
Though no other details were revealed, Greg Solano, co-founder of Yuga Labs, the firm behind BAYC, noted that while there isn’t much to do on the testnet yet, various decentralised applications Yuga Labs has been working on will eventually run on the chain once the mainnet is operational.
In mid-February, the ApeCoin DAO community voted to develop the ApeChain network on Arbitrum, with support from Horizen Labs. The vision for the Layer 2 network was to boost the utility of the APE token and open new monetization channels.
According to the technical roadmap, APE tokens will function as both the gas and governance tokens for the new network. The ApeCoin DAO community will have the authority to introduce additional features, facilitated by Arbitrum’s on-chain governance approach.
As part of this initiative, Horizen Labs has committed to being a long-term supporter and holder of ApeCoin. The company projected that the ApeCoin DAO could generate $7 million in annual revenue if the network processes one million transactions per day, each with a transaction fee margin of $0.02. As part of the agreement, the Arbitrum Foundation will provide grant funding to cover the expenses of the ApeChain Security Council and Block Explorer for three years.
This development comes on the heels of significant advancements in the Layer 2 space. Notably, TNA Protocol has established itself as a pioneer in the cryptocurrency sector by becoming the first naming protocol supported on a Bitcoin Layer 2 solution. This achievement, through its strategic partnership with Bitlayer Labs, positions TNA to directly support Bitlayer’s extensive network of over 150 ecosystem partners. TNA’s ability to map human-readable ‘Tapnames’ to Bitcoin-native addresses is expected to simplify transactions and enhance user interaction with the Bitcoin network. This aligns with the broader trend of Layer 2 solutions enhancing the usability and functionality of blockchain networks.
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