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What is Apecoin (APE)?
Luis Clark
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Luis Clark
What is ApeCoin (APE)?
ApeCoin is the governance and utility token of the APE ecosystem, which includes the Bored Ape Yacht Club BAYC and Mutant Ape Yacht Club NFTs. The ERC-20 token serves as a decentralized protocol layer that empowers a decentralized community building web 3.0 initiatives that seek to drive culture towards the Metaverse.
ApeCoin is governed by the APE DAO (Decentralized Autonomous Organization), which functions on a base layer called the APE Foundation, which allows Ape token holders in the APE DAO to build projects.
Who is the Founder?
There are 5 co-founders or initial board members of the APE DAO; Alexis Ohanian (Reddit Co-founder), Amy Wu (Head of Ventures and Gaming at FTX), Dean Steinbeck (President and General Counsel at Horizon Labs), Maaria Bajwa (Princip at Sound Ventures), and Yat SIU (Co-founder and Chairman at Animoca Brands). These board members are voted to stay or be removed every 6 months by the APE DAO community.
How does ApeCoin (APE) Work?
APE token holders take governance decisions collectively. They decide and cast their votes on issues such as project selection, allocation of funds, partnerships, rule formations, and much more. These governance decisions chosen by the community are then implemented by the ApeCoin Foundation.
The ApeCoin Foundation is the legal representative of the DAO and it exists to facilitate the growth of the ecosystem. Within the ApeCoin Foundation, there’s a special body called the Board that it’s responsible for executing the vision of the community. The board, commonly known as the APE Board, consists of 5 members from the crypto and tech community. Every 6 months holders can vote for new board members.
Key Features
APECoin DAO
APECoin Decentralized Autonomous Organization (DAO) is a decentralized governance framework that supports the APECoin ecosystem fund and uses the APECoin token as its governance token. APECoin’s DAO votes on proposals regarding future projects related to the coin and also governs the expenses of the DAO’s treasury. It ensures that the funds are distributed in a way that promotes a diverse and self-sustaining ecosystem.
Membership to APECoin DAO is open to anyone who buys the APECoin token. Even though membership is open to all, there is a board of 5 top-tier crypto investors that oversee specific proposals related to APECoin DAO. The board meets on proposals that require administrative review under DAO rules.
Each board member has a 6-month term, after which the DAO community members vote for a new board. A proposal process is used to vote in the DAO.
APECoin DAO members are expected to participate in idea submission, proposal submission, and commentary. DAO members make contributions to the ecosystem through the APE Improvement Proposal (AIP) Process. This enables DAO members to make decisions regarding funds allocation in the APE ecosystem, partnerships, projects, rules, and governance of the ecosystem.
All APE Improvement Proposals (AIP) are submitted as a post in a discourse. For the proposal to appear in the community, it must be confirmed by a moderator. The confirmation is done to ensure that the proposal complies with the DAO guidelines. If the proposal passes the approval process, it becomes available for voting on Snapshot. For an APECoin holder to vote, post ideas or comment on ideas, they must go through a wallet authentication process.
APE Foundation
The APE Foundation was designed to facilitate APECoin’s decentralized government. It does not control APECoin DAO or the APECoin ecosystem. The APE Foundation also does it decide the future of the coin. The major aim of the APE Foundation is to oversee the decisions of the APECoin DAO. It also acts as a third-party project management team that ensures that decisions made by the APECoin DAO are implemented.
The APE Foundation is supported by 2 groups; the Special Council and the Administrators.
The Special Council
This council comprises leaders and accomplished experts in the Web3 space. The council oversees the administration of the foundation. A weekly meeting is held to discuss AIPs and to ensure that every proposal presented to the DAO for approval is carefully thought out and given the appropriate consideration.
The initial appointment to the Special Council is for a 6-month term. After this, the Special Council will be elected yearly by the APE community.
The Administrators
The Administrators are a third-party group that specializes in administering Web3 organizations. They perform the fundamental work that is needed to support the DAO governance structure. While the administrators do not make decisions for the DAO, they are tasked with ensuring that the DAO abides by the rules and processes put in place by the DAO.
The Administrators also ensure that discourse posts are open and closed at the right time and that they abide by community guidelines. They review AIP drafts to ensure that they are detailed and also prepare AIP analysis reports for the Special Council. The Special Council helps the Administrators to review and assess drafts.
Administrators also support the drafting and amplification of APE community ideas.
Weaknesses of ApeCoin (APE)
Just like most cryptocurrencies, ApeCoin is highly volatile. The price can fluctuate spontaneously. While an upward growth in the price can benefit investors, a sudden fall in the price can result in serious loss. The volatility of APECoin also makes it impossible for the price to be precisely predicted.
Another weakness of ApeCoin is that it is not an independent blockchain, it is dependent on the Ethereum network. While there are some benefits attached to being a part of the Ethereum ecosystem, there are also some disadvantages. The major problem with its dependence on the Ethereum blockchain is that they are losing potential decentralized applications. ApeCoin also does not have control over vital aspects like scalability. If it doesn’t move to an independent chain in the nearest future, the growth of the APE ecosystem and its token could be negatively affected.
ApeCoin is also yet to have real-world utility. No mainstream company has accepted it as a payment method. This is because it is held in the Ethereum blockchain and Ethereum, even after its successful transitioning to a Proof-of-Stake network, is not an accepted payment form.
The ApeCoin system is quite new, and APE hasn’t been around for a long time in trading. With so many other tokens in the crypto world, the ApeCoin team must make big changes to protect the future of the APE system and its tokens, so they don’t get left behind.
How is ApeCoin (APE) Created?
ApeCoin has been pre-mined with a total fixed supply of 1 billion tokens. There is no minting capability exposed via the contract interface. This means that the total supply of the ApeCoin token will never increase. The contract interface also does not allow any token burning capability so the overall supply can never decrease.
That said, in line with the typical practice, a portion of the tokens for project contributors was initially locked but was unlocked on the token’s launch day, the 17th of March 2022.
The token was distributed as follows:
62% of the unlocked tokens are allocated to the ApeCoin DAO community where 15% of the available tokens are given to NFT holders of Mutant Ape Yacht Club (MAYC) and Bored Ape Yacht Club (BAYC). Holders of Mutant Ape Yacht Club are entitled to 2,042 APE while holders of Bored Ape Yacht Club can claim 10,094 APE for the NFT they own. What’s left will be released as part of the DAO’s ecosystem fund.
16% of the tokens will flow to Yuga Labs. A part of this allocation will go toward the primatologist Jane Goodall’s charity foundation. 14% of the tokens are for the people who contributed to the launch of the ApeCoin protocol.
8% of the tokens have been set aside for the 4 founders of Yuga Labs and Bored Ape Yacht Club. ApeCoin follows the concept of locked tokens to prevent Yuga Labs, the founders of Bored Ape Yacht Club, and other launch contributors from selling their holdings. ApeCoin allocations to Yuga Labs and Bored Ape Yacht Club aren’t unlocked for at least 12 months. After this duration, a specific allotment of tokens becomes accessible to them every month.
Mining ApeCoin (APE)
You cannot mine ApeCoin as the token’s supply is fixed at 1 billion APE. This means the tokens cannot be burned or mined. However, there are some options for ApeCoin mining, which do not mine the token. Instead, they mine Ethereum and then change it into ApeCoin.
Which Blockchain does ApeCoin (APE) Use?
ApeCoin is an ERC-20 token, which means it uses the Ethereum blockchain.
How to Use ApeCoin (APE)?
ApeCoin is an ERC-20 token and it is the utility token of the APE ecosystem. It is the governance token of the APE ecosystem. ApeCoin holders are automatically qualified to be members of the ApeCoin DAO where they can vote on governance decisions within the APE ecosystem.
ApeCoin holders are also granted access to exclusive games, events, and other parts of the Ape ecosystem. Being the utility token of the APE ecosystem, APECoin can be used as a shared and open currency that can be used without centralized intermediaries to purchase goods and services within the APE ecosystem.
Since APECoin is an ERC-20 token, it is accepted by most merchants as a means of payment. It is also used as an NFT reward. ApeCoin holders in the Bored Ape Yacht Club (BAYC) get free APE which can be converted to cash.
Third-party developers also use APE as a tool for participating in the APE ecosystem. ApeCoin can be incorporated into their services, projects, and games. Some of these third-party developers use ApeCoin as an incentive for their players.
ApeCoin is also set to be integrated into the metaverse. When this happens ApeCoin will be used as a transaction token in the metaverse marketplaces.
How to Buy ApeCoin (APE)?
To purchase ApeCoin you will need an exchange that supports the trading of ApeCoin. Exchanges like Binance, FTX Exchange, and Coinbase support the trading of ApeCoin. For a comprehensive list of where to buy ApeCoin check the ApeCoin page on Coinmarketcap.
You can buy ApeCoin on most exchanges with the following steps:
- Choose your preferred exchange.
- Create and verify your account with the exchange.
- Fund your wallet
- Navigate to the ApeCoin page, and input the amount you wish to purchase.
- Confirm your order
How to Store ApeCoin (APE)?
Since APECoin is an ERC-20 token, it can be stored in Ethereum wallets like Trustwallet, Metamask, Argent, Brave Wallet, Infinity wallet, etc. ApeCoin can also be stored on hardware wallets like Ledger Nano S and X and the Trezor hardware wallet.
Hardware wallets are recommended for storing large volumes of ApeCoin and long-term storage of the token as they are less susceptible to hacking attacks and phishing scams.
If you trade ApeCoin often, using a hardware wallet may not be so convenient, especially for instant transactions. You should get a software wallet or a wallet on an exchange that is secure. Ensure you do a proper search when considering a software wallet for your ApeCoin.
Pay attention to vital information like the reputation and credibility of the exchange, whether they have been hacked in the past and if the exchange is insured.
By checking this, you’ll understand how safe your tokens are on the platform. Additionally, it helps determine if you’ll receive compensation in case the exchange gets hacked and your tokens go missing.
Best Place to Stake ApeCoin (APE)?
As of now, ApeCoin does not officially permit APE staking but this is about to change due to community proposals. In May 2022, APE holders voted to have Horizon Labs develop a staking platform that will offer token rewards to APE holders who hold or stake ApeCoin, Mutant Ape NFTs, and Bored Ape NFT.
At the start of September 2022, Horizon Labs provided a snippet of the community-requested staking program’s user interface and features. The future staking platform has gained a lot of acceptability in the crypto space as the price of APE nearly doubled as the launch day gets closer.
What You Need to Know about the Future of ApeCoin (APE)?
ApeCoin was built with the future in mind. The project focuses on the evolution of blockchain technology and web3 to facilitate entertainment, art, gaming, and numerous other possibilities beyond those.
Now, while it is quite early to predict the potential rise of the ApeCoin ecosystem and its native token, the community is actively engaging in the NFT space and has built relationships for the integration of the project on other decentralized platforms.
For example, Benji Bananas, Animoca Brands’ game utilizes ApeCoin in its play-to-earn game. Plus, the ApeCoin DAO States that in the future there will be access to BAYC-styled services, further possible airdrops, and games. Yuga Labs and Animoca Brands have also mentioned a future Bored Ape project that would be powered by APE.
So the possibilities with ApeCoin will grow as the proposals and infrastructure keep getting improved by the community.
That said, ApeCoin is a project you would want to keep an eye on as far as the future of art, entertainment, and culture is concerned.
Conclusion: Should You Put Money in ApeCoin (APE)?
ApeCoin is one of the cryptocurrencies to watch out for as the project releases new updates. Plus, if you’re interested and knowledgeable in NFTs and the Metaverse, ApeCoin would make a quality investment.
Risk in Investing in ApeCoin (APE)?
ApeCoin has an exciting future, however, it is a cryptocurrency and cryptocurrencies are extremely volatile. This implies that you can lose all your investment in the worst-case scenario. So only invest what you’re willing to lose.
Our extensive analysis of the different Cryptocurrencies doesn’t stop here. You can also check out our “What is Monero?” guide to know more about another huge project.
FAQ
Most frequent questions and answers
ApeCoin has a fixed total supply of 1 billion tokens.
The initial board of ApeCoin consists of 5 notable crypto investors: Amy Wu, Alexis Ohanian, Maaria Bajwa, Dean Steinbeck, and Yat Siu.
ApeCoin is an ERC-20 token governed by the ApeCoin DAO. The ApeCoin DAO is a decentralized autonomous organization with the vision of making decisions like governance rules, partnerships, ecosystem fund allocations, etc.
Yuga Labs is the startup behind Bored Ape Yacht Club.
Yuga Labs was started by 2 individuals under the pseudonyms of Gordon Goner and Gargamel.
ApeCoin is a great investment as it has a ton of potential in the rapidly furrowing Metaverse ecosystem. Currently, ApeCoin already is used as an in-game currency for a popular play-to-earn game.
Yes, ApeCoin is the cryptocurrency of the APE ecosystem.
The APE ecosystem consists of a wide range of services and products and individual APE holders that utilize the cryptocurrency. Some top members of the APE ecosystems include Yuga Labs and Horizon Labs which have adopted the token for their projects.
Though ApeCoin doesn’t yet have a huge following, it is backed by a couple of big names. The major company connected to the project is Yuga Labs. Yuga Labs is one of the most popular brands in the NFT space.
The Bored Ape Yacht Club (BAYC), commonly called Bored Apes or Bored Ape is a collection of bored ape NFTs. The bored ape NFT is a profile picture of cartoon apes generated by an algorithm.
Mutant Ape Yacht Club is an NFT project that was created by Yuga Labs as an extension of Bored Ape Yacht club. Yuga Labs created the MAYC to expand on the Bored Ape Yacht Club ecosystem.
The Bored Ape Kennel Club (BAKC) is an NFT collection of over 9,000 outlandish cartoon dogs on the Ethereum blockchain. Bored Ape Kennel Club was created by Yuga Labs.
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Yuga Labs is based in Miami.
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