Bored Ape Yacht Club Announces The Launch of $APE Token

Bishal Kumar Chanda
17.03.2022

Among the fastest-growing crypto startups, Yuga Labs seems to be at the very top. Launched in April 2021, Yuga Lab's Bored Ape Yacht Club has grown to become one of the most valuable NFT projects by market cap. Only days after acquiring CryptoPunks and Meebits, the Yuga Labs team announced the launch of ApeCoin ($APE) on BAYC's official Twitter handle

Having announced the token back in October 2021, the BAYC team has disclosed full details about the hotly anticipated token. In short, it seems like the $APE token will serve as a governance token in the broader BAYC ecosystem. Yuga Labs CEO Nicole Muniz said, "The community's been wanting ApeCoin for a long time now, so we're excited to see it come to life through community ownership." He added, "Yuga Labs will continue to be builders of products and experiences that bring new ideas and energy to the community." 

What is ApeCoin ($APE) and ApeCoinDAO?

As described by Yuga Labs, $APE will be a "token for culture, gaming, and commerce used to empower a decentralized community building at the forefront of web3." $APE further facilitates the expansion of the BAYC metaverse. However, Yuga Labs or BAYC is not behind the $APE token launch. While Yuga Labs plans to "adopt ApeCoin as the primary token for all new products and services," it will remain a product of the new organizational unit, ApeCoin DAO. 

Presumably, for legal reasons, Yuga Labs took great pains to distance ApeCoin DAO's token launch from the BAYC project. Club Style NFTs with long-term benefits are starting to resemble investment contracts overseen by the Securities and Exchange Commission (SEC) in the US. From its previous actions, we know that the SEC isn’t favorable towards cryptocurrencies and NFTs. After imposing a $100 million fine on crypto lending platform BlockFi, the SEC has initiated an NFT probe to regulate this space. 

To be a member of the ApeCoin DAO, the only requirement is to hold ApeCoins ($APE). The DAO exists to give $APE holders the voting rights for fund allocation, governance rules, projects partnerships, etc. 

While the token utility is still unclear, it is apparent that $APE will be used as an in-game currency for projects Yuga Labs is working on. It includes the previously announced play-to-earn game that'll be released in partnership with Animoca Brands. The company also revealed that the token could be utilized in Benji Bananas, an existing Animoca title. In addition, Yuga Labs has also partnered with nWay game studio for an unannounced title. 

But it doesn't end there. The company is planning a separate gaming title called MetaRPG, which will be compatible with multiple NFT projects. Further ahead this year, BAYC fans can also expect virtual land sales, which will further increase the $APE token utility and the company's net revenue. 

The Ape Foundation

The Ape Foundation supports the ApeCoin DAO. While the Ape Foundation is not an overseer for $APE, it'll act as a base layer for $APE coin holders to build upon. In addition, the Ape Foundation will use the Ecosystem Fund to pay for expenses as directed by the ApeCoin DAO. A multi-sig wallet controls the Ecosystem Fund, which provides an infrastructure for $APE holders to participate in an open and permissionless governance process. 

Moreover, the Ape Foundation will have a special council called the Board to oversee the foundation administrators. Additionally, the Board will administer DAO proposals and serve as a vision of the $APE community. Under ApeCoin DAO's rules, the Board meets on proposals that require an administrative review. 

Currently, the Board consists of: 

  • Alexis Ohanian (Reddit co-founder)
  • Yat Siu (Animoca Brands co-founder and chairman) 
  • Dean Steinbeck (Horizen Labs president and general counsel)
  • Maaria Bajwa (Sound Ventures principal)
  • Amy Wu (FTX head of ventures and gaming)

The present Board will serve a six-month term, after which the ApeCoin DAO will annually select new members. 

ApeCoin Tokenomics

With a total supply of 1 billion, $APE is an Ethereum-based token that will be allocated as follows: 

  • 8% will go to the BAYC founders.
  • 16% will go to the Yuga Labs team.
  • 14% will go to launch contributors, including Yuga Labs partners and investors.
  • 14% will be airdropped to Bored Ape and Mutant Ape holders.
  • 47% will see an overtime release as the DAO's Ecosystem Fund.

For all NFT enthusiasts without a BAYC NFT, $APE will be available for everyone soon. Although there is no official statement yet, the team revealed that $APE would "soon" start trading on major crypto exchanges, including Coinbase, Kraken, FTX, eToro, OKX, Gemini, and Binance. You can find additional announcements on the ApeCoin Twitter account and the official ApeCoin website. For more such NFT updates and NFT Guides, stay tuned with NiftyHype.

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