The Role of ApeCoin in Boosting BAYC’s Growth
The world of crypto is a buzzing hive of activity, with a multitude of tokens representing a vast array of domains. Among them, NFTs have captured the attention of investors, and the Bored Ape Yacht Club and its affiliated collections have taken center stage.
These unique creations feature apes that seem to be suffering from boredom, but their every detail can be customized to the buyer’s preferences. Despite their seemingly mundane nature, many investors have been captivated by their charm.
Some of these NFTs have sold for hundreds of thousands of dollars, with the likes of Justin Bieber and Eminem among the illustrious buyers.
The most expensive BAYC NFT to date, Bored Ape #8817, even fetched a staggering $3.4 million at a Sotheby’s auction.
Bored Ape Yacht Club #8817
Apecoin is the cryptocurrency created by the Bored Ape Yacht Club, which has grown in popularity rapidly.
What is ApeCoin?
ApeCoin is an ERC-20 token based on the Bored Ape Yacht Club NFT project, with governance as its primary design goal.
Apecoin launch tweet
ApeCoin allows all holders to participate in the DAO (decentralized autonomous organization), allowing them to vote and have a voice on community-led proposals that can shape the coin’s future and how the Ecosystem funds are used. ApeCoin functions as a decentralized protocol layer explicitly designed for community-driven initiatives with the primary goal of delivering power to the APE community.
Furthermore, ApeCoin Dao is the official DAO for the BAYC, the largest NFT project ever. While different people founded the ApeCoin DAO and BAYC, APE also serves as BAYC’s governance token.
Ownership of BAYC has become a status symbol, with celebrities including Neymar and Madonna owning pieces. BAYC NFT ownership can provide access to exclusive events and premium spaces.
Holders of a BAYC were airdropped – given free digital assets – ApeCoins – in March 2022. They were given free money solely for holding the BAYC NFT.
History of ApeCoin
ApeCoin was officially launched on March 16, 2022, as a “token for culture, gaming, and commerce,” It is the primary cryptocurrency in the Bored Ape Yacht Club ecosystem.
The ApeCoin DAO created ApeCoin. This DAO is open to all APE holders. The higher your APE, the more power you have in making decisions. Furthermore, Yuga Labs, the creator of BAYC, is involved in the funding and leadership of the ApeCoin DAO.
A board of advisors has been formed to represent the ApeCoin DAO to serve it best. The DAO elects the board, and the board is in charge of putting DAO proposals into action.
The board is comprised of the following:
- Alexis Ohanian (Reddit – co-founder),
- Amy Wu (FTX – head of ventures and gaming),
- Dean Steinbeck (Horizen Labs – President & general counsel),
- Maaria Bajwa (Sound Ventures – Principal),
- Yat Siu (Animoca Brands – co-founder & chairman)
How Does ApeCoin Work?
ApeCoin is a governance and utility token based on ERC-20 used within the APE ecosystem. To this day, the token’s utility is increasing.
ApeCoin ownership allows for four primary purposes, which are as follows:
- Governance: APE owners can join the ApeCoin DAO to vote on protocol-related proposals such as fund allocation and project ideas. For example, there was recently a proposal for the community to remain on the Ethereum network. The ApeCoin community voted to stay on Ethereum in a close vote.
- Access: The token also enables access to parts of the APE ecosystem that otherwise wouldn’t be available such as games, exclusive merchandise, events, and services. Purchasing ApeCoin is also a perfect opportunity to open up the APE ecosystem for those that believe in the vision but can’t afford the expensive NFTs.
- Incentivization: ApeCoin is also used to encourage third-party developers to include ApeCoin in their projects, games, and services. For example, Benji Bananas, a mobile game, uses $APE as an in-game currency. PRIMATE tokens (game tokens) can be earned by owners and exchanged for ApeCoin.
- Unification of Spend: ApeCoin’s structure allows token holders to use ApeCoin as an open currency without centralized intermediaries. Gucci and TAG Heuer have recently added ApeCoin to their crypto payment options.
Tokenomics of ApeCoin
ApeCoin’s total supply is one billion tokens. The contract interface prevents the creation of additional tokens, trying to impose a cap. Because there is no burning mechanism, the supply won’t go down.
The available tokens are distributed as follows:
- 14.00% is allocated to Launch Contributors
- 15.00% is allocated to BAYC/MAYC NFT Holders
- 47.00% is allocated to Treasury/Resources
- 15.00% is allocated to Yuga Labs
- 1.00% is allocated to Charity (JGLF)
- 8.00% is allocated to BAYC Founders
To ensure a fair ApeCoin launch for BAYC and MAYC NFT holders, the allocation is informed by the difference in floor price between each collection of NFTs, roughly a month before the token claim launch (02/07/22 to 03/08/22).
ApeCoin Crypto Governance
While APE crypto holder voting via the APE DAO is intended to be the primary vehicle for community-based ecosystem direction, other processes are also involved:
- APE DAO: Open to all APE holders, the DAO allows for votes on DAO rules, projects, APE payments, and third-party partnerships.
- APE Foundation: The APE Foundation is responsible for weekly project management and operations. It uses ecosystem funds directed through APE DAO governance and is accountable for fulfilling the DAO’s decisions.
- ApeCoin Board: The board oversees the APE Foundation’s administrative processes. Composed of five people, the first board serves a six-month term. Following this allotted time frame, APE DAO members vote for new board members annually.
What is the APE Ecosystem?
The APE ecosystem is made up of APE holders as well as any products and services that use APE.
Individual token holders and a wide range of cryptocurrency-powered products and services contain the ApeCoin ecosystem.
Bored Ape Yacht Club is the ecosystem’s first NFT series, with 10,000 unique digital avatars featuring colorful cartoon apes.
Mutant Ape Yacht Club (MAYC), a collection of 20,000 “mutated” BAYC apes with varying traits, and Bored Ape Kennel Club (BAKC), a collection of dog-themed NFTs that can be “adopted” by Bored Ape NFT holders, are also included.
Aside from BAYC, another notable project in the ecosystem is the Otherside metaverse, which Yuga Labs, Improbable, and Animoca Brands created. Decentraland, like other metaverse projects, will be a platform for developers to create various games and experiences. Otherside also includes virtual land, with each plot having its distinct characteristics.
So, their NFTS make up a large portion of the APE ecosystem:
- BAYC
- Mutant Ape Yacht Club
- Bored Ape Kennel Club
- Otherside Metaverse
ApeCoin : the Currency of an Entire Metaverse Economy
There isn’t much information available about the projects that will accept ApeCoin. However, Yuga Labs has high hopes for incorporating ApeCoin into its plans, stating on its website that holders can use ApeCoin to access exclusive merch, events, and services.
ApeCoin will also be the de facto currency for all new projects, including the play-to-earn aspect of Benji Bananas, a popular mobile game owned by Animoca Brands, according to Yuga Labs.
In even more exciting news, the token will serve the same purpose in Otherside, Yuga Labs’ upcoming metaverse game that appears compatible with other leading NFT collections such as Mutant Ape Yacht Club, CryptoPunks, World of Women, and Cool Cats.
In addition to Yuga Labs, Time Magazine has announced that it will soon accept ApeCoin for digital subscriptions.
On the other hand, Rappers Snoop Dogg and Wiz Khalifa have released eight songs together that can only be purchased with ApeCoin.
ApeCoin News
The most recent big news in the ApeCoin world has been the introduction of staking, which went live on December 5, 2022.
ApeCoin also launched its NFT marketplace, which became operational on November 23. The DAO chose Snag Solutions, an NFT infrastructure company, to build the marketplace in the summer of 2022 rather than notable industry brands like Rarible or Magic Eden.
This new marketplace enables NFT investors to purchase and sell tokens from Yuga Labs’ collections. BAYC, Bored Ape Kennel Club, and Mutant Ape Yacht Club are among them.
Conclusion
In the future, the metaverse will play a more significant role in virtual goods. The fact that ApeCoin (APE) is directly tied to the biggest, most profitable, and culturally influential NFT project ever means it has likely been adopted as the metaverse token. Because of BAYC’s dominant position in the NFT world, artists, athletes, and other cultural icons are drawn to this project, providing it with a solid narrative to drive forward with.
ApeCoin also performs well regarding investors’ ability to access tokens on major exchanges such as Binance and Coinbase. Its rising popularity attracts interest from smaller exchanges aimed at younger retail traders.
ApeCoin’s long-term success is dependent on its widespread adoption. In the future, the token is poised to benefit from an increased utility in Web 3.0, mainly when projects from Animoca Brands, NWayPlay, and other game developers are released.