Polygon price dips while co-founder outlines ApeChain improvement proposal

Polygon co-founder Sandeep Nailwal has put out an "ApeChain" proposal to address ApeCoin's scalability challenges. At the time of writing, the ApeCoin DAO proposal received 18 votes that could initiate the development of a dedicated zero-knowledge powered Layer-2 (zk-L2) chain on the Polygon network. In the past, however, not all community members have been in agreement about the need for ApeCoin's own chain.

Polygon proposes collaboration with ApeCoin

Polygon co-founder outlined zero-knowledge technology to supercharge the ApeCoin ecosystem in the AIP proposal.

The primary objectives include a dedicated ApeChain built in collaboration with Polygon Labs using the Polygon Chain Development Kit (CDK). The proposal boasts of Polygon CDK 3, an open-source developer toolset for zk-powered Layer-2 solutions on Ethereum.

The executive proposes a development fund from ApeCoin DAO treasury for the growth of ApeCoin-integrated projects in entertainment, gaming, and consumer applications.

Nailwal notes motivation for this improvement proposal, or AIP, stems from last year's discussion within the ApeCoin community about migrating to its dedicated chain, a move that some members say is essential for scalability.

NFT creator and ApeCoin contributor Yuga Labs suggested that ApeCoin should operate on its own chain to handle the surging demand effectively. Nailwal circled that ApeCoin DAO previously voted to remain within the Ethereum ecosystem in AIP-41."The question of an ApeCoin-specific chain is open and remains ripe for decision," he said.

AIP awaits votes as MATIC price dips

In the past, the ApeCoin community has been divided on whether the Ethereum network can handle demand after the minting of Otherdeed non-fungible token (NFT) was interrupted by the Etherscan crash last year. Yuga Labs said Ethereum's infrastructure struggled to cope with the high demand during the minting, which remains a point of contention.
 

As ApeCoin DAO contemplates the AIP, the fundamentals of Polygon (MATIC) appears to be in a bearish trend as per IntoTheBlock analysis. The In the Money indicator, which breaks down holders making profit at current price levels, is at a mere 4%.

The price of MATIC at the time of writing is around $0.51, marking a 2% decrease in the daily time frame based on CoinGecko figures. MATIC lost around 12% value over the past week.

Sandeep Nailwal's proposal for ApeChain could present a scaling opportunity to the ApeCoin ecosystem on Ethereum. While Polygon boasts of its zero-knowledge technology, the broader crypto market weakness will keep penetrating the market valuation of the project.