ApeCoin (APE) is an Ethereum-based governance and utility token in the APE ecosystem. As stated on the ApeCoin website, the token is intended to serve as a "decentralised protocol layer for community-led initiatives that drive culture forward into the Metaverse".
In brief
- ApeCoin is the native ERC-20 token of the APE ecosystem.
- Three organisations manage the ApeCoin protocol.
- Token supply is capped at 1 billion, which can't be burned nor inflated.
- The token is used for protocol governance, unification of spend, access to certain ecosystem parts, and incentivisation.
- Staking will be implemented at a later date.
- ApeCoin is in the top 30 on coin ranking sites.
Who created ApeCoin?
ApeCoin was launched by the ApeCoin DAO, a governing organisation open to all ApeCoin holders.
Along with the DAO, there are two organisations that manage the ApeCoin protocol – the APE Foundation and the ApeCoin Board.
The APE Foundation handles day-to-day administrative work, proposal management and "other tasks that ensure the DAO community's ideas have the support they need to become a reality". Essentially, the APE Foundation is the legal support of the ApeCoin DAO.
The ApeCoin Board oversees various proposals. The initial Board members included high-profile investors, namely:
- Alexis Ohanian - Co-founder of Reddit; General Partner & Founder of Seven Seven Six
- Amy Wu - Head of Ventures & Gaming at FTX
- Maaria Bajwa - Principal at Sound Ventures
- Yat Siu - Co-founder & Chairman of Animoca Brands
- Dean Steinbeck - President & General Counsel at Horizen Labs
The idea is that the initial Board serves a term of six months. After that, DAO members will vote annually on new Board members.
This policy is set to be implemented at a later date.
What is the ApeCoin token?
ApeCoin is an ERC-20 utility token of the APE ecosystem, branded as a Web 3.0 project that empowers the building of decentralised communities.
Token holders are able to vote on decisions and governance proposals, as well as make suggestions on possible additions. These include games, events and services within the ecosystem.
Yuga Labs, the creators of the popular NFT collection Bored Ape Yacht Club (BAYC), adopted ApeCoin as the main token underpinning products and services. The company also owns the intellectual property rights of two popular NFT projects, CryptoPunks and Meebits.
APE tokenomics
The token's maximum supply is capped at 1 billion, with the DAO ensuring that there is no technical capability to mint additional tokens using the ApeCoin smart contract.
Token burning is also not implemented, meaning the supply will neither increase nor decrease.
150 million tokens of the supply go to BAYC/MAYC members.
470 million tokens are kept for the DAO treasury and resources - 117,500,000 are unlocked on launch, and 7,343,750 are released per month over the course of 48 months.
160 million tokens go to Yuga Labs and charity. These tokens are distributed as follows:
- For Yuga Labs, 150 million tokens (with an initial 12-month lock-up period and 4,166,666.67 unlocked per month for 36 months)
- For the Jane Goodall Legacy Foundation, 10,000,000 tokens (with an initial 12-month lock-up period and 277,777.78 tokens unlocked per month for 36 months)
Launch contributors, each with a different lock-up schedule, are also awarded 140 million tokens.
Finally, 80 million tokens go to Yuga Labs and BAYC founders with an initial 12-month lock-up period and 2,222,222.22 tokens unlocked per month for 36 months.
How does it work?
The ApeCoin protocol follows the footsteps of other NFT and crypto projects.
Its ERC-20 token serves four main functions – incentivising users to join, protocol governance, unification of spend, and allowing access to the ecosystem.
Incentivisation
The APE token serves as a tool allowing developers to use the ecosystem by incorporating the token in their games, services, and other projects.
Governance
As noted previously, APE is a governance token, allowing holders to participate in the future development of the protocol and the DAO.
Unification of spend
The token serves as a shared and open currency for all ecosystem participants that is not controlled by any centralised intermediaries.
Access
The token enables access to parts of the ecosystem which are otherwise unavailable. Think of it as a ticket which grants access to exclusive merchandise, events, games, services, and more to holders of the ticket.
There are also plans to enable holders to stake the token and thus earn an income from GameFi applications.
What is the risk associated with APE?
When it comes to volatility, you could say that it is no stranger to APE, making it quite a risky asset.
That being said, this volatility is a clear sign of one thing - APE is yet to establish a sustainable rise and gain the support of its investors. So if you are thinking of becoming one, be aware that you will be putting money in an asset very susceptible to price drops.
We can only speculate about its future and advise to always invest with caution.
Putting it all together
APE, the governance and utility token of the APE ecosystem, was built to support "what's next" while empowering the building of decentralised communities.
As explained in the article, it serves multiple purposes, along with doubling as a membership to a BAYC swamp club for apes - a versatile token, without a doubt.
If you are interested in making APE part of your portfolio, head on over to the SwissBorg app and complete the purchase in one tap!
