ApeCoin: a token created by the BAYC collection authors
ApeCoin is Yuga Labs’ virtual product governance token, which is also used in the Otherside metaverse. APE is its own ticker symbol. The token was launched on the Ethereum network in 2022 based on the ERC-20 standard.
Token holders are eligible to become members of ApeCoin DAO, its community that determines the direction of Yuga Labs' projects along with voting on various innovations. It also requires ApeCoin to buy NFT terrain or other digital goodies in the Otherside firmament.
Additionally, the asset provides owners with access to exclusive content (online games, branded products, live community meetings).
By and large, the APE represents a keystone token among existing and future Yuga Labs ventures. Moreover, it is possible for developers of decentralized applications to incorporate the token into the functionality of dApps.
Among APE's rivals are mainstream governance tokens alongside assets that are used in blockchain games and meta-universes. These are SAND, MANA, BIT, AXS, to name but a few.
ApeCoin home page
The Origins of the ApeCoin Token
Let's go back to the year 2021. In a non-fungible token market, the Bored Ape Yacht Club (BAYC) collection by Yuga Labs emerged on NFT's market. A pop-culture symbol, within a mere six months, it had become a cult icon. Bored Ape's value hovered around $200 for not long before rapid growth began. Eventually, not only the crypto community, but also TV stars, brands and musicians became interested in the collection, making BAYC even more prominent. APE coins sold for $2.7 million and $1.4 million, respectively, were two of the most expensive.
NFT collection Bored Ape Yacht Club at OpenSea Marketplace
Identities of a few Yuga Labs founders were revealed in 2022. Greg Solano and Wylie Aronow, both Americans, are unveiled visionaries.
Once the hype surrounding a novelty died down, NFT club members were delighted to announce the development of the Otherside metaverse game space as well as the release of an ApeCoin token. Yuga Labs has raised $450 million in investment to develop those projects along with other products to be developed later. Among the major beneficiaries were Andreessen Horowitz, Animoca Brands, Sound Ventures, Thrive Capital and more.
Likewise, two new collections were launched in 2022: Mutant Ape Yacht Club (mutant apes) and Bored Ape Kennel Club (four-legged ape chums). In both cases, holders of previous NFTs were given the new, non-fungible tokens virtually free of charge.
ApeCoin DAO: What is it?
As previously mentioned, APE holders are able to join the ApeCoin DAO – a decentralized, autonomous organization that participates in the governance of all Yuga Labs projects via a special voting platform. For every ApeCoin owner, there is a right to express their opinion regarding any decisions taken: website redesign, release of the latest collection, meta universe updates.
ApeCoin DAO is handled by the ApeCoin Foundation, which provides financial support for the development of the ecosystem and holds responsibility for bookkeeping.
APE Tokenomics
This token occupies the 35th position in the ranking of cryptocurrencies on the CoinMarketCap website in terms of market value. Its capitalization equals $1.8 billion. Currently, the market has 368 million APE tokens in circulation. The maximum supply is limited to 1 billion coins. Since the project's smart contract does not outline the ability to burn ApeCoin, their total supply will never decrease.
APEs allocation illustrated:
- 62% belongs to the ecosystem fund, with 150 million held by BAYC and MAYC NFT holders & 470 million in the project's treasury;
- 6% are held by Yuga Labs, of which $10m is donated to charities;
- 14% are destined for investors;
- 8% are kept in the accounts of Yuga Labs' co-founders.
ApeCoin token allocation pattern
As per established tokenomics law, some funds have been locked up, with the possibility of gradual unlocking over a 4-year period.
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
