The Bored Ape Yacht Club collection has been front and center of the NFT story ever since it was first minted back in the summer of 2021. The BAYC community has grown steadily as more and more celebrities aped in and bought their own bored primate to flex their wealth and understanding of ‘the culture’. The creators behind the notorious NFT collection have kept the momentum going by extending the universe and narrative of the Apes with projects such as the Mutant Ape Yacht Club and Bored Ape Kennel Club (depicting dogs rather than apes), collaborating with Animoca Brands to explore ventures into the metaverse and even producing an animated film series together with Coinbase.
The latest addition to the BAYC world is APE Coin, the native monkey currency designed as the decentralized protocol layer for various initiatives that are supposed to be led by the community.
What Is APE Coin?
In March 2022, it was announced that members of the BAYC collection would be getting their very own cryptocurrency, ApeCoin. The coin was created to enable community members to govern the ApeCoin DAO – a newly formed organizational unit created to drive the culture forward into the metaverse. While APE was airdropped to all holders of BAYC NFTs, being part of the community was more accessible: all you need is to simply hold APE.
APE supply is fixed at 1 billion tokens, so there are no capabilities to mint further tokens and there is also no burning capability meaning the supply won’t decrease either. In total, 150 million tokens were airdropped to holders of BAYC-related NFTs: BAYC holders got 10094 tokens, MAYC holders 2042 tokens, and Kennel Club holders got extra supply as well.
470 million APE tokens are reserved for the DAO treasury and resources where 117,500,000 from these were unlocked at launch and 7,343,750 will be unlocked monthly for 48 months.
So what does it mean to participate in the governance of a DAO? Well, holders will have the ability to vote on community-led proposals that determine the future of the token. For example, there are already governance proposals regarding things like ecosystem fund allocation and staking rewards. These proposals promise future benefits for APE holders.
Currently, there is a live proposal for a staking program for ApeCoin. It’s written by Animoca Brands whose founder is on the board of ApeCoin. The goal of the proposal is to make ApeCoin the preferred token of web3 by incentivizing early NFT adopters and existing ecosystem participants to engage in activities benefitting the APE Ecosystem.
A decentralized token like APE can also be used for payments and transactions within Web3 apps of all sorts, even those not created or controlled by Yuga Labs – the creators behind the BAYC collection – or related to the Bored Ape Yacht Club directly. For example, developer nWay announced that it will use APE in an upcoming play-to-earn game based on the Bored Ape Yacht Club, while Animoca’s unaffiliated Benji Bananas game will implement APE for token rewards. ApeCoin DAO has said that some future functionality will be reserved exclusively for APE holders, such as upcoming games and services.
Even when you’re done with exploring the metaverse and need some time away from the screen, APE coin can be used in meatspace as well. Florida-based brewery SaltWater Brewery has announced people can buy its beer at a discount if they pay with APE.
Many coins tend to launch first on small exchanges before arriving at top-tier marketplaces. During that initial phase, the price swings can be dramatic as the community is still forming. The story of APE is quite different though. The coin was immediately available on AAX and many other top crypto exchanges, and while the price action did see the expected pop at first, it has since traded in a healthy and sustainable way.
Perhaps that can be attributed to a large, genuinely involved community supporting the BAYC universe.