At the beginning of 2023, it was announced that the members of the Bored Ape Yacht Club NFT collection would be releasing their own cryptocurrency, Apecoin. Apecoin is closely associated with Yuga Labs, the firm that manages the intellectual property for the Bored Apes and is directly tied to these renowned expensive non-fungible tokens. However, a meticulously planned marketing effort has gone to considerable lengths to separate Ape Coin from any one traditional company.
In this guide, we will be taking a closer look at the long-awaited APE coin by Yuga Labs and everything you should know about it.
What is APE Coin?
ApeCoin (APE) is a cryptocurrency launched on March 16, 2022, designed to enhance the Bored Ape Yacht Club (BAYC) ecosystem, one of the most popular NFT collections in the world. As an ERC-20 token, APE serves multiple purposes, including governance and utility for its community members. Governed by the ApeCoin DAO, it empowers holders to participate in decision-making processes and access exclusive opportunities.
With a total supply of 1 billion tokens, APE aims to foster a decentralized culture that bridges the gap between digital art, gaming, and commerce, making it a pivotal player in the evolving Web3 landscape.
Who Created APE?
ApeCoin was developed by a team behind the Bored Ape Yacht Club, including many developers and artists known as Yuga Labs. The developers Yuga Labs always wanted to develop a community on their Bored Ape NFT project. They found a DAO and governance token to empower the ones involved in the community and give them a say in the future of the project.
APE Tokenomics
The total supply of APE is 1 billion tokens. This supply will not increase since there isn’t anything to mint further tokens via its contract interface. Since there aren’t any burning capabilities, they wouldn’t decrease.
150 million tokens were airdropped to users of BAYC-related NFTs in the below-mentioned proportions:
- Bored Ape NFT = 10094 tokens
- Mutant Ape = 2042 tokens
- Bored Ape + Kennel Club = 10950 tokens
- Mutant Ape + Kennel Club = 2898 tokens
The APE tokens will be distributed as follows:
- 25% will go to the community treasury
- 20% will go to the team and advisors
- 5% will go to liquidity provision
- 50% will go to holders of Mutant Ape and Bored Ape
Bored Ape NFT and Mutant Ape NFT holders were the first to receive the token, which was airdropped to them. By voting on ideas or giving others the ability to vote, APE coin holders can take part in the Bored Ape Yacht Club DAO’s governance. Because it allows holders to directly influence the project’s destiny, the APE coin is an essential part of the BAYC community.
The APE Coin Protocol
As we discussed above, APE is an ERC-20 token that serves the purpose of governance. However, it also brings utilities when utilized within the APE ecosystem.
Below are some of the few purposes served by the open-source protocol layer of the whole ecosystem:
Incentivization
APE can be used by developers to participate in the ecosystem by integrating it into their products, games, services, and so forth.
Governance
As discussed above, governance is one of the primary purposes of APE since it allows users to participate in the DAO.
Access
The cryptocurrency enables users to access the unavailable parts of the ecosystem, including merch, events, games, etc. exclusive to holders.
What Makes APE Coin Different from Others?
Many advantages of APE Coin make it unique from other cryptocurrencies.
It is being included in the Metaverse of Otherside
APE Coin might become this year’s most sought-after metaverse coin due to its connection with the impending metaverse Otherside. Thus, APE Coin will be used on the metaverse marketplace as a transaction token. Players may also receive rewards if P2E elements are incorporated into the metaverse. Additionally, APE Coin is expected to work with other well-known NFT collections, such as Cool Cats, Mutant Ape Yacht Club, World of Women, and CryptoPunks.
The currency used for Yuga Labs’ upcoming initiatives will be APE
Yuga Lab claims that APE Coin will be the common money for all future initiatives, including the play-to-earn element of Animoca Brands’ popular smartphone game Benji Bananas.
It is widely used
Rappers Snoop Dogg and Wiz Khalifa collaborated to make eight songs that are exclusively available for purchase with APE Coin outside of Yuga Labs, while Time Magazine has declared that it would soon accept APE Coin for digital subscriptions.
Conclusion
APE Coin stands at the forefront of the convergence between cryptocurrency and digital art, particularly, through its association with the Bored Ape Yacht Club (BAYC). As a community-driven token, APE not only facilitates governance and decision-making among its holders but also serves as a versatile medium for transactions within an expanding ecosystem. Its strategic distribution and diverse use cases position it as a vital asset in the rapidly evolving landscape of Web3.