What is ApeCoin? Exploring The Bored Ape Yacht Club Native Token

In addition to protocol governance, APE can be used to purchase items in the ecosystem and is also used as an in-game currency for APE-compatible blockchain-based games. It can also be used to gain access to exclusive BAYC events as well as Bored Ape’s network of stakeholders. The APE ecosystem is governed by a decentralized autonomous organization (DAO) called the APE DAO, which lets APE crypto holders vote on the direction of ApeCoin projects. It works in tandem with the APE Foundation to carry ape meaning crypto out governance decisions that must be implemented in the real world. It allows holders to participate in the ApeCoin DAO as a governance token. APE holders can also access exclusive features of the APE ecosystem, including games, merch, events, and services.

What Is ApeCoin (APE) and How Does It Work?

Many of the total supply of tokens will vest gradually over the next few years. The APE ecosystem comprises the holders of the token and all the products and services that use the cryptocurrency for any purpose. Let’s take a look at the https://www.xcritical.com/ projects that are part of the APE ecosystem. Holders of the token get to make their opinions heard in decisions concerning the ecosystem. And they also get members-only features that include access to games and events, among other things. You can use ApeCoin to gain entrance to physical or digital events held by the APE community, purchase BAYC merchandise, and spend it within the APE ecosystem’s suite of products and services.

Why don’t those with only BAKC NFTs get a token allotment?

All told, 15% of the token supply will be allocated to NFT holders. Another 47% of the total supply will be granted to the DAO treasury and resources, with much of that tally vesting over the next 48 months. Every holder of ApeCoin is eligible to become a member of the ApeCoin DAO. $APE serves as a governance token, being a member of the DAO allows you to vote on every major decision, shaping the future of the token. The weight of your votes will be based on the share of tokens you own, so the more tokens — the more voting power one has.

What Is ApeCoin? The Ultimate Guide for Beginners

One Bored Ape could generate one Mutant Ape for each serum, after which the serum would disappear. This one launched in June 2021, and members of the BAYC got immediate access to it. It is a collection of dog NFTs, and holders of Bored Ape NFTs could “adopt” one.

• Anything that is somewhat tied to apes has received a lot of speculative trading.
• Somnium Space is a virtual reality application built on the Ethereum blockchain that allows you to create, experience, and trade digital worlds and NFT assets.
• It’s affiliated with a non-fungible token (NFT) project known as the Bored Ape Yacht Club (BAYC), a massively successful and valuable collection launched by Web3 company Yuga Labs.
• ApeCoin DAO is a decentralized autonomous organization (DAO) for all APE token holders to participate in governance decisions.
• ApeCoin debuted on March 17, 2022, highly anticipated by the Bored Ape and the NFT community in general.
• The same principle applies to blockchain tokens as well—higher supply dilutes the demand, which devalues the token.

How was the Foundation Board selected?

While the company that launches blockchain tokens doesn’t directly affect its price, it does so indirectly. For example, Yuga Labs’ development of the Otherside platform increases ApeCoin’s utility value. This is assured in perpetuity by the Ethereum-based smart contract responsible for the cryptocurrency’s creation, which does not allow for minting (creating) or burning (destroying) of tokens. Holding APE makes users part of the Ape decentralized autonomous organization (ApeDAO), enabling them to vote on system improvement proposals and govern the community surrounding the token. YugaLabs announced that the token will also be used as the governance token for the ApeCoin DAO.

ApeCoin and the Otherside Metaverse

Yuga Labs is the creator of the trending Bored Ape Yacht Club (BAYC) NFT collections. It also owns the IP of another two popular NFT projects, CryptoPunks and Meebits. Consequently, there will never be a situation in which an oversupply of tokens dilutes their value, as with fiat currency. In charge of APE distribution is the ApeCoin DAO, a decentralized autonomous organization. In the previous section, it is important to take the second point with a grain of salt.

What will the charitable donation to the Jane Goodall Legacy Foundation be used for?

15%, or 150 million $APE, went to Yuga Labs and was locked for a 12-month period, ending in March 2023. The 150 million $APE are now released over the course of 36 months. Every owner of a Bored Ape Yacht Club or Mutant Ape Yacht Club NFT was eligible to claim their share of $APE. The companion for these two NFT collections — the Bored Ape Kennel Club (BAKC) NFTs —served as a multiplier for the number of tokens that could be received.

Bored Ape Kennel Club (BAKC) is a collection of dog NFTs that were made available to every single member of the BAYC. For each Bored Ape NFT they own, holders could “adopt” a random Club Dog NFT for free, only paying a gas fee. Like the Apes, the 10,000 BAKC NFTs have various attributes and rarities. The MAYC was also a means to welcome more new members to the APE community. This is why 10,000 mutant Apes were also minted for a public sale in August 2021 following the mutant serum airdrop. Let’s look at the NFT collections that are related to the APE ecosystem.

Step 3: Select ApeCoin among the available assets and buy the token

Overall, 15% of the maximum supply was ready to be claimed by holders on launch day. An administrative council within the APE Foundation (the “Board”), will carry out the decisions of ApeCoin DAO members. The Board is responsible for the day-to-day administration, bookkeeping, project management, and other tasks that ensure the Community’s ideas have the support they need to become a reality.

If something bad happens to the centralized exchange where you keep your crypto, your crypto will vanish as well. In line with the standard practice, a portion of the tokens for contributors tothe project will be initially locked. Locked tokens will be unlocked over aperiod of 48 months, in accordance with the predetermined unlock schedule in thechart below, starting on launch day, March 17, 2022. Culture has found new expression in web3 through art, gaming,entertainment, and events. The possibilities for blockchain’s impact on cultureare so endless that they can’t possibly all be predicted yet.

ApeCoin is an ERC-20 governance and utility token used within the APE ecosystemto empower a decentralized community building at the forefront of web3. If you would like to know where to buy ApeCoin at the current rate, the top cryptocurrency exchanges for trading in ApeCoin stock are currently Binance, BTCC, Hotcoin, Bybit, and OKX. If you elect to hold your assets in your own custody, it is important to use a cold storage wallet.

YugaLabs plans to take it even a step further and create an entire community based around web3 and blockchain technologies. ApeCoin is an Ethereum-based cryptocurrency created by Yuga Labs, the $4 billion company famous for its collection of eccentric and colorful Bored Ape Yacht Club NFTs. The virtual real estate raised $320 million dollars within an hour. You must’ve heard of the Bored Ape Yacht Club (BAYC), the insanely popular NFT collection. And you definitely must’ve seen at least one of those bored ape NFTs.

The odds are stacked against ApeCoin, especially if the bear market is prolonged. While its survival is trivial, those on the inside of the DAO have the ability to guide it through this crypto winter. Just as Axie Infinity players earn tokens in tactical arenas, so will they earn APE coins for all upcoming games within the APE ecosystem. It will then be up to Yuga Labs to forge partnerships with other companies to integrate their coin, alongside developing their own Otherside experience. The “metaverse” bit in that equation just means that people can use their MetaMask wallet to import their NFTs. As for the Otherside gameplay itself, not much has yet been revealed (at the time of writing), except it will be “immersive and supported by AI and physics.”

Investing in cryptocurrencies, decentralized finance (DeFi), and other initial coin offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.

Holders will be able to vote on relevant topics ranging from the allocation of funds to what future endeavors the DAO should embrace. ApeCoin will be the default currency for all things related to the Bored Ape community. In late April 2022, YugaLabs launched an auction for “land” in the Otherside. As Bored Apes became mainstream, the company behind them, YugaLabs, used the momentum to launch new web3 applications. It has already launched its own metaverse, dubbed the Otherside.