Anyone familiar with the NFT space knows about the expensive monkey profile pictures known as Bored Ape Yacht Club (BAYC). Even someone who has no idea what an NFT is has seen a Bored Ape somewhere on the internet. However, lesser known is the governance token for the BAYC community, ApeCoin.
ApeCoin is an ERC-20 token used for governance and utility in the APE ecosystem. The APE Foundation, started by BAYC creator Yuga Labs, facilitates the ecosystem, however they do not control decisions made by the community. The ApeCoin Decentralized Autonomous Organization (DAO) controls all decisions and proposals. DAOs are an extremely important aspect of DeFi.
As an ERC-20 token, ApeCoin was launched on the Ethereum blockchain. It is secured by Ethereum’s proof-of-work mechanism.
How Many ApeCoins Exist?
The total supply of ApeCoin is permanently set at 1 billion tokens. These were all minted at once. However, not all of the tokens are in circulation. On March 17, 2022, the launch day , about 30% of the tokens were released.
As time goes on, this percentage will increase over a 48 month period. However, it is not a fixed number of tokens that get added into circulation. This is determined by market factors, as well as how the DAO decides to vote.
Additionally, owners of BAYC and Mutant Ape Yacht Club NFTs were given a fixed token allotment. You were required to own a Bored Ape or Mutant Ape in the month prior to the token launch.
What Does ApeCoin Do?
By owning ApeCoin, you are given the ability to participate in the APE web3 ecosystem. This includes posting on the forums and creating and voting on APE Improvement Proposals (AIPs).
APE Improvement Proposals are created and voted on by members of the DAO. This includes new initiatives for the ecosystem as well as changes to the existing tokenomics.
It is this voting power that gives the token value. Since Bored Ape is one of the most famous brands in the web3 and NFT space, many people want to participate in the APE ecosystem.
Owners of ApeCoin also can participate in exclusive games, like Mutant vs Ape.
Can You Buy Things with ApeCoin?
Recently, different companies and retailers have begun accepting ApeCoin as currency!
Gucci and TAG Heuer both started accepting ApeCoin as a form of payment this year. Luxury brands have begun aligning with the Bored Ape brand, as it is one of the most expensive NFT collections.
Do You Need to Own a Bored Ape to Buy ApeCoin?
Even though they are related, you do not need to own a Bored Ape in order to buy ApeCoin. It is available on many different exchanges, including Decentralized Exchanges like UniSwap and SushiSwap.
What is the Future of the APE Ecosystem?
The value of ApeCoin is the access it gives users into the APE ecosystem. This ecosystem is completely decentralized, so the members of the DAO control its future. This is good news for the project, as members of the DAO want the ecosystem to grow and thrive in the future.
If you are thinking about buying ApeCoin, it is a good idea to look at the proposals listed on the APE forums to determine if the project is a good fit for your portfolio.