19 Feb 2025

light mode

ApeCoin DAO In a Nutshell

ApeCoin DAO In a Nutshell

ApeCoin DAO is a hot topic in the crypto community. Launched on March 16, the coin is the crypto extension of the fabled Bored Ape NFT collection built on the Ethereum blockchain.

On this page

Just six days after being listed on major global cryptocurrency exchanges, the media reported that the coin became a favorite among crypto whales, reaching a holder count of over 36,500 wallets.

Described as a “token for culture, gaming, and commerce used to empower a decentralized community building at the forefront of web3”, its white and blue logo depicts the skull of a monkey, reflecting the Bored Ape’s design concept.

Here is a round-up of the project.

Apes taking over

In 2021, the Bored Ape Yacht Club, owned by the YugaLabs, launched the Bored Ape NFT collection, a series of automatically generated profile pictures of cartoon apes with a twist.

Each monkey wears a unique outfit and has a distinct element (signs, accessories, etc) to it. All Bored Ape NFT owners are part of a private online club, exclusive in-person events, and intellectual property rights for the image, all of which shed light on why the project became wildly successful.

According to estimates, it has generated 145,000%+ profits for anyone who bought at the minimum price less than a year ago, a rare return in the world of cryptocurrencies.

Celebrities like Eminem, Snoop Dogg, Steve Aoki alongside the famous investor Mark Cuban, who once compared Bitcoin with bananas, are among those who own the Bored Ape NFTs.

Madonna has recently joined their ranks, becoming the proud owner of a Bored Ape Yacht Club NFT — Bored Ape No. 4988. She is estimated to have paid a whopping 180 ETH for the NFT, i.e. around $600,000 at the time of writing.

To expand its success, YugaLabs is already working on other projects and has recently bought the rights to CryptoPunks, Meebits, and others and raised $450 million in equity funding from a16z’s crypto fund and others.

ApeCoin’s nuts and bolts

The coin also has an extensive description of the ApeCoin’s gist and mode of governance on its site, noting that “the ApeCoin community governs itself via the ApeCoin DAO, the decentralized governance framework that supports the Ecosystem Fund. The DAO follows a proposal process to vote on how the Ecosystem Fund will be distributed by the APE Foundation to promote a diverse and self-sustaining ecosystem. This governance guide is an overview of the proposal process. It’s a living document that will evolve and improve with the DAO community’s input.”

Being a community-led project, it also has a proposal process, based on the one implemented and proven out over time by Ethereum’s EIP system. The community may submit a structured Ape Improvement Proposal relating to three categories: Core, Process, or Informational. Core proposals have two subcategories, Brand Decision and Ecosystem Fund Allocation.

Each proposal is subject to vote, with ApeCoin spelling out the procedure in detail while also stating that ApeCoin DAO’s consensus mechanism aims to make placing votes fair, transparent, and low-cost so that ApeCoin holders can participate in the decision-making of the DAO.

It also promises to transition the proposal and voting mechanisms into a full, on-chain platform in a form determined by the community over time.

Value and use cases

Like its parent NFT project, ApeCoin looks like a promising venture.

Although ApeCoin’s value decreased since its release (it hit the market at a value of just over $40), it is still trading at a solid price of $14.76 with a market cap of $4,099,141,302.

ApeCoin’s total supply stands at 1 billion tokens. The number is fixed with no burning option available. Minting beyond that number is likewise unavailable.

Considering the limited supply and popularity, ApeCoin has a good chance of increasing its value over time as the crypto market evolves.

The Bored Ape Yacht Club is also on its way to creating the first use cases for the ApeCoin, increasing its utility. Recently, it has teamed up with the Hong Kong-based Animoca Brands to develop a play-to-earn blockchain game featuring ApeCoin with built-in play-to-earn mechanics.

The trailer is available on YugaLab's official Twitter handle.

But how decentralized is it?

ApeCoin prides itself on being a decentralized project built on DAO, essentially a group of people pursuing a shared goal, using a blockchain to make decisions transparently and efficiently.

However, that claim is yet to be fully verified as there seems to be some trouble in ape paradise.

Following its launch, ApeCoin received critique for its decision to allocate 38% of the supply to reward all of YugaLabs’ earliest backers, including YugaLabs, YugaLabs’ founders, and the VCs who backed the project, including Andreessen and Horowitz, and Bored Apes owners.

This decision might spell trouble for ApeCoin, especially since these 38% allows its holders to potentially impact the coin’s price, which undermines the concept of decentralization.

Some media outlets took a step further, describing it as “awfully” centralized. Not least because the holders seem to be relying very heavily on “the efforts of others.”

Other reservations pertain to regulatory issues.

The crypto-verse is no stranger to the Security and Exchange Commission’s (SEC) continuous scrutiny of crypto projects big and small. Just ask Ripple Labs which has been fighting off the SEC for over two years with the lawsuit's end nowhere in sight.

So ApeCoin may yet to prove that it is not a security in line with Hinman’s test.

Per the test, “if the network on which the token or coin is to function is sufficiently decentralized — where purchasers would no longer reasonably expect a person or group to carry out essential managerial or entrepreneurial efforts — the assets may not represent an investment contract.”

Accordingly, if there is no investment contract, it is not a security. But some other factors and nuances need to be taken into consideration.

Simply put, ApeCoin has to make sure that its launch is not regarded as a veiled IPO, a big no-no for every coin looking to become a major crypto player.

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

Articles by this author
MEMX Files for SEC Approval to List XRP ETF from 21Shares

MEMX Files for SEC Approval to List XRP ETF from 21Shares

The U.S. market is seeing a wave of altcoin ETF applications, and MEMX is the latest player to join in. The exchange has filed a request with the SEC to approve the listing of the XRP ETF introduced by 21Shares, a major name in crypto investment products.

The Coinomist
Bitcoin Bull Run Is Just Starting as Institutions Buy In

Bitcoin Bull Run Is Just Starting as Institutions Buy In

A recent Bernstein report suggests that Bitcoin could soon see strong upward momentum, driven by increasing institutional investments.

Anton Kryshtal
Mystery Coder Burns $7M in ETH—Calls Out Brain-Tech ‘Weapons’

Mystery Coder Burns $7M in ETH—Calls Out Brain-Tech ‘Weapons’

A mysterious figure, Hu Lezhi, has publicly burned millions in ETH, alleging the existence of an underground organization manipulating human consciousness.

Anton Kryshtal
Lawmaker Attacks Trump’s Meme Coin, Musk’s DOGE

Lawmaker Attacks Trump’s Meme Coin, Musk’s DOGE

Democratic Congresswoman Ayanna Pressley has criticized the DOGE agency and Trump’s meme coin, arguing they represent a dangerous shift in financial oversight.

Anton Kryshtal
Weekly Analysis of BTC, ETH, and the Stock Market (Feb 18, 2025)

Weekly Analysis of BTC, ETH, and the Stock Market (Feb 18, 2025)

An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.

Artem Khomenko
Weekly Analysis of BTC, ETH, and the Stock Market (Feb 10, 2025)

Weekly Analysis of BTC, ETH, and the Stock Market (Feb 10, 2025)

An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.

Artem Khomenko
Weekly Analysis of BTC, ETH, and the Stock Market (Feb 3, 2025)

Weekly Analysis of BTC, ETH, and the Stock Market (Feb 3, 2025)

An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.

Artem Khomenko
How to Bump a Transaction in the Bitcoin Network

How to Bump a Transaction in the Bitcoin Network

Sometimes, Bitcoin transactions can get “stuck,” especially if a low fee was set. In such cases, you might wonder: Why is my Bitcoin transaction stuck?

bitOn
Inside Cryptocurrency Farms: How Digital Coins Are Mined

Inside Cryptocurrency Farms: How Digital Coins Are Mined

Cryptocurrency farms and mining have evolved significantly since Bitcoin launched in 2009. To understand their growth, it helps to look at the broader history of resource extraction.

The Coinomist
From Bulls to Ballers — Why Celebrities Are Flocking to Crypto

From Bulls to Ballers — Why Celebrities Are Flocking to Crypto

Trump’s meme coin isn’t an outlier—it’s part of a broader trend. Back in 2021, celebrities were minting NFTs, and by 2024, they had moved on to personal token launches. The connection between fame and crypto has been growing for years, even if many failed to see it.

Vlad Vovk
Which Macroeconomic Factors Make Crypto Rise or Fall? 

Which Macroeconomic Factors Make Crypto Rise or Fall? 

It happens when you check the market and crypto prices are up or down for no obvious reason. Then you do some research and find out that there are actually reasons outside the crypto space.

Anahit Avetisyan
How Blockchain Helps Combat Disinformation

How Blockchain Helps Combat Disinformation

Fake news has become a global issue, shaping public opinion, fueling social tensions, and even influencing political decisions. With the rise of social media, the spread of misinformation has accelerated, making it increasingly difficult to regulate. However, blockchain technology offers a promising solution in the fight against fake news.

Daryna Nesterenko
Trading Psychology: How to Avoid Falling Victim to Your Own Biases

Trading Psychology: How to Avoid Falling Victim to Your Own Biases

The most successful traders aren’t always the smartest. More often, those who excel are the ones who understand psychological traps, manage their emotions, and maintain rationality under pressure.

Vlad Vovk
Pantera’s Tax Probe: A Wake-Up Call for Crypto Investors

Pantera’s Tax Probe: A Wake-Up Call for Crypto Investors

Dan Morehead, the founder of Pantera Capital, is under investigation by the US Senate Finance Committee (SFC) over $850 million in crypto profits. The key issue is whether he avoided U.S. taxes by moving to Puerto Rico, a well-known tax haven for crypto investors.

Anahit Avetisyan
The Bitcoin Kid’s 2011 Prediction – How Right Was He? 

The Bitcoin Kid’s 2011 Prediction – How Right Was He? 

In May 2011, an unusual video surfaced on YouTube. A 12-year-old boy explained Bitcoin – how it works and what its future might hold.

Anahit Avetisyan
MORE
«Mass Adoption Isn’t About Tech – It’s About Perception». Bitmedia Founder Matvii Diadkov – About RWA, Web3, And Marketing

«Mass Adoption Isn’t About Tech – It’s About Perception». Bitmedia Founder Matvii Diadkov – About RWA, Web3, And Marketing

Matvii Diadkov, founder of Bitmedia, shared with us in an exclusive interview his expert insights on Web3 adoption, impact of GameFi and community-centering tendencies in the market.

The Coinomist
“Satoshi is CIA”: Swedish crypto bro opens up about his Bitcoin journey

“Satoshi is CIA”: Swedish crypto bro opens up about his Bitcoin journey

The first crypto craze took place almost a decade ago. Overnight, many people found out about Bitcoin and its underlying technology, blockchain.

Lesia Dubenko
MORE