Polygon Faces Cost Challenge in ApeCoin DAO ETH L2 Pitch

Polygon Labs’ effort to convince ApeCoin DAO to transition to an Ethereum Layer 2 faces a cost hurdle.

An ape on the phone in the Polygon (MATIC) space.
Created by Kornelija Poderskytė from DailyCoin
  • Polygon Labs has submitted a proposal for ApeCoin DAO to transition to an Ethereum Layer-2 using the CDK.
  • The cost of the proposed move has raised concerns within the ApeCoin community.
  • Polygon Labs maintains that the transition aligns with ApeCoin DAO’s mission.

Following the Chain Development Kit (CDK) launch in August 2023, efforts to expand the Polygon ecosystem in line with the 2.0 roadmap have entered into high gear as Polygon Labs continues to proposition promising and popular projects. 

In the latest instance, Polygon Labs Executive Chairman Sandeep Nailwal has proposed that ApeCoin DAO transition to a zero-knowledge powered Ethereum Layer-2 using the CDK. But, the proposal faces a significant hurdle as community members take issue with the cost.

ApeCoin DAO Community Counts the Cost

In a proposal on Tuesday, October 10, Nailwal tipped an ApeCoin DAO transition to a ZK Ethereum Layer 2 powered by the CDK as the perfect salve for scaling issues observed during the Otherside Otherdeed mint.


Nailwal further argued that the proposed “ApeChain” will allow the ApeCoin ecosystem to offer a more comprehensive range of experiences and enjoy tremendous growth through interoperability with the entire Polygon ecosystem.

While many in the ApeCoin community agree on the proposal’s technical merits and potential benefits, the estimated cost has raised concerns. The Polygon Labs executive noted that building, deploying, and maintaining the proposed ApeChain will cost the ApeCoin DAO an estimated $200k annually. 

"Why do we need to be paying Polygon $200K per year for this, when we can go to any other chain (AVAX, Arbitrum, Optimism etc) and do it - cheaper?" one user quipped.

Another asserted:


"Makes no sense to pay $200k a year for $ APE's own chain when $APE could just use polygon chain or a similar tech for free. Also being on a chain that's already built will have more users."

It is necessary to understand how the proposed migration will work amid these concerns.

How the Polygon Labs Proposal Will Work

The first step in the proposed Ethereum Layer 2 transition plan is for ApeCoin DAO to choose an “implementation partner” to build the ApeChain architecture with technical support from Polygon Labs. Nailwal noted that Polygon Labs will collaborate with the ApeCoin DAO on ecosystem development and support. Per the proposal, all of these would be funded with a development fund from the ApeCoin DAO treasury.

Nailwal estimated that the migration process should take about 16 weeks or four months, including steps like alignment, strategy, scoping, integration, and promotion.

The Polygon Labs executive maintained that deploying an Ethereum Layer 2 with the CDK aligned with ApeCoin DAO’s mission to “serve as a decentralized protocol layer for community-led initiatives that drive culture forward into the metaverse.”

On the Flipside

  • The development fund Nailwal’s proposal relies on is enshrined in a proposal that has yet to be approved.
  • ApeCoin DAO decided against leaving the Ethereum ecosystem in 2022 despite congestion issues.
  • Several prominent projects are already being built with the Polygon CDK, including Canto, Astar, Immutable, and Gnosis Pay.

Why This Matters

The concerns raised about Polygon Labs’ ApeChain proposal highlight that pricing plays a key role when projects choose between scaling solutions and could be a deciding factor as these solutions fight for dominance.

Read this to learn more about Polygon’s CDK:
How Polygon’s Chain Development Kit Enables the 2.0 Vision

Caroline Ellison has taken the stand in the SBF trial. Learn more about her testimony here:
Caroline Ellison: SBF Called the Shots in Alameda, FTX Fraud

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.