ApeCoin APE

A Comprehensive Guide to Ape Coin: Everything You Need to Know

Ape Coin (APE), a digital currency associated with the Bored Ape Yacht Club (BAYC) community, aims to empower its members and drive the metaverse's growth. In this article, we'll delve into the origins of Ape Coin, its connection to BAYC, tokenomics, and various use cases within its ecosystem.

Bored Ape Yacht Club

The Bored Ape Yacht Club (BAYC) is a collection of unique, hand-drawn NFTs (non-fungible tokens) representing membership in an exclusive digital club. Each BAYC NFT features a distinct cartoon ape with varying traits and backgrounds. 

Owners of these NFTs gain access to special events, collaborations, and digital experiences within the BAYC community. Since its launch, BAYC has gained immense popularity and has become a symbol of status and influence in the NFT and broader crypto world.

The Origins

Ape Coin, an ERC-20 token built on the Ethereum blockchain, was developed by Yuga Labs, the creators of the popular Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) NFT collections. Launched in March 2023, Ape Coin was airdropped to BAYC and MAYC NFT holders, making it one of the most valuable airdrops in crypto history at that time.

Ape Coin's development was guided by the ApeDAO, with the Ape Foundation Board, which includes Reddit co-founder Alexis Ohanian and Yat Siu of Animoca Brands, ensuring the implementation of decisions made by the ApeDAO. The ApeDAO was established through ApeCoin Improvement Proposal-1 (AIP-1), submitted by the co-founder of Cartan Group LLC, a consulting firm based in the Cayman Islands.

What is Ape Coin?

Ape Coin is a digital currency designed to serve as the native fungible token of the Bored Ape Yacht Club (BAYC) community. The token is built on the Ethereum blockchain and is intended to power a variety of transactions and activities within the BAYC ecosystem and the broader metaverse.

Who is it for?

• BAYC Community Members: Ape Coin is primarily tailored for BAYC members, who can use the token to access various features, products, and services within the BAYC community and partner platforms.
• Metaverse Participants: As the metaverse continues to expand, Ape Coin aims to serve users engaged in virtual worlds and digital platforms, providing them with a versatile currency to facilitate transactions and interactions.
• NFT Enthusiasts and Collectors: Ape Coin caters to NFT enthusiasts and collectors by offering a native currency that allows them to buy, sell, and trade NFTs within the BAYC ecosystem and beyond.
• Developers and Creators: Ape Coin supports developers and creators by enabling them to build innovative projects and platforms that leverage the token's utility and the growing BAYC community.

Ecosystem and Features

ApeDAO Governance

Ape Coin holders have the ability to participate in the ApeDAO, which governs the ecosystem surrounding the token. Through the ApeDAO, users can vote on system improvement proposals and contribute to the direction of the community.

Web3 Utility and Incentivization

Ape Coin is designed to function as a utility token in Web3 projects, including games, metaverse worlds, and blockchain projects. Developers can incorporate APE into their projects, and users may access exclusive opportunities such as additional airdrops or real-world events. 

The integration with projects like Otherside and Benji Bananas showcases APE's adaptability and potential as an incentive in the expanding metaverse and play-to-earn markets.

Integration with BAYC and MAYC

Ape Coin is closely associated with the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) NFT collections. Holders of these NFTs were among the first recipients of Ape Coin, linking the token's utility and value to the success of these popular NFT projects.

Otherside Metaverse

Yuga Labs' metaverse project, Otherside, connects with BAYC and has chosen APE as its transactional currency for digital real estate NFTs called "Otherdeeds." The $300 million revenue generated from the sale of these NFTs demonstrates the potential of Ape Coin in metaverse marketplaces and play-to-earn rewards.

APE Tokenomics

Capped Supply and Distribution

ApeCoin, with its capped total supply of 1 billion tokens, ensures a predictable and limited token circulation. The contract interface prohibits further minting, and there's no burning mechanism, maintaining a consistent supply. This fixed supply plays a significant role in the token's value and scarcity in the long run.

Allocation to DAO Community and NFT Holders

The distribution of ApeCoin is as follows: 62% is allocated to the ApeCoin DAO community, with 15% going to Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) holders. BAYC holders can claim 10,094 APE for each NFT they own, while MAYC holders are entitled to 2,042 APE. The remaining portion will be released as part of the DAO's ecosystem fund.

Founders' Allocation and Token Lockup

The four founders of Yuga Labs and BAYC are allocated 8% of the tokens. To prevent these parties from selling their holdings, ApeCoin follows a locked tokens concept. The allocations remain locked for at least 12 months, after which a specific allotment of tokens becomes accessible to them on a monthly basis.