ApeCoin (APE): Cryptocurrency for the APE-BAYC Ecosystem

What Is ApeCoin?

Launched in March of 2022, ApeCoin (APE) is the primary token of the ecosystem emerging around watershed non-fungible token (NFT) collection Bored Ape Yacht Club (BAYC) and its founding organization Yuga Labs. BAYC launched as an NFT collection in April 2021. Its success has led to many associated projects — both official and unofficial. The official Bored Ape ecosystem is a multifaceted one anchored in web3, encompassing NFTs, collectibles, art, and gaming.

The Bored Ape ecosystem merges digital economies with live events, material goods, and a physical community. ApeCoin has been created to harness the economic potential of this ecosystem, which has grown into a billion dollar USD market in a little over a year since its launch in 2021. ApeCoin is positioned to fuel this economy as a utility token to create value, and dovetails as a governance token to ensure a decentralized future.

APE has wide-ranging use cases. In addition to protocol governance, APE can be used to purchase items in the ecosystem and is also used as an in-game currency for APE-compatible blockchain-based games. It can also be used to gain access to exclusive BAYC events as well as Bored Ape’s network of stakeholders. The APE ecosystem is governed by a decentralized autonomous organization (DAO) called the APE DAO, which lets APE crypto holders vote on the direction of ApeCoin projects. It works in tandem with the APE Foundation to carry out governance decisions that must be implemented in the real world.

Connection Between ApeCoin and Bored Ape Yacht Club

Yuga Labs is the company that developed BAYC, and went on to release the successful Mutant Ape Yacht Club (MAYC) and Bored Ape Kennel Club (BAKC) NFT collections. The company also acquired the intellectual property (IP) rights of the popular CryptoPunks and Meebits NFT collections in March 2022. So while APE will be used as the primary token within the BAYC crypto ecosystem, it can also be used with other Yuga Labs-related projects.

In keeping with values of equitable participation sought after in the growth of BAYC, ApeCoin is designed to be run in an inclusive and democratic way via the APE DAO. To help guide the project’s direction, the Ape Foundation will provide stewardship during the project’s early stages. The Foundation is tasked with fulfilling and handling DAO procedures that cannot be handled online or on-chain.

Use Cases of ApeCoin

Like many tokens native to a platform or network, ApeCoin offers an array of core functions within its ecosystem. While long-term tokenomic development is managed via APE DAO governance, ApeCoin launch functions include:

Decentralized governance: Through the APE DAO, APE crypto holders can vote on protocol decisions within the APE ecosystem. In this case, APE functions as a governance token. Proposals are supported by an APE DAO treasury, and overseen by the APE Foundation, which is tasked with growing and developing the ecosystem rather than directing it.

Ecosystem cryptocurrency: APE functions as a utility token and cryptocurrency. It is intended to serve as a shared currency within the APE crypto ecosystem of products, games, and services; the project refers to this architecture as “Unification of Spend.”

Ecosystem incentivization and access: In addition to potential Yuga-helmed projects in the pipeline, APE can be integrated into third-party projects — including games or new NFT collections, for example — to incentivize participation in the ecosystem and benefit from its network effects and notoriety. In addition, APE crypto holders gain access to ecosystem perks such as rare merchandise, games, products, and invitations to in-person events.

ApeCoin Tokenomics

While its name may nod to Bitcoin, the ApeCoin asset itself is more specifically a digital token built according to the Ethereum ERC-20 tokenization standard. ERC-20 is a popular token framework for creating the multi-functional, highly fungible tokens found throughout the Ethereum blockchain ecosystem. ApeCoin launched with a hard-capped supply of one billion APE tokens. No mechanism currently exists to further mint (create) or burn (destroy) these tokens, so its supply is expected to remain constant. At time of launch, roughly 30% of the ApeCoin supply was in circulation, with the rest scheduled to be released over the next several years.

You can buy or sell APE on various centralized exchanges (CEXs) and decentralized exchanges (DEXs).

ApeCoin Crypto Governance

While APE crypto holder voting via the APE DAO is intended to be the primary vehicle for community-based direction of the ecosystem, there are also other bodies and processes involved:

• APE DAO: Open to all APE holders, the DAO allows for votes on DAO rules, projects, APE payments, and third-party partnerships.

• APE Foundation: The APE Foundation is responsible for weekly project management and operations. It uses ecosystem funds as directed through APE DAO governance and is responsible for fulfilling the DAO’s decisions.

• ApeCoin Board: The board is tasked with overseeing the APE Foundation’s administrative processes. Composed of five people, the first board serves a six-month term. Following this allotted time frame, APE DAO members vote for new board members on an annual basis.

ApeCoin’s Ambitious Vision

The vision behind ApeCoin is to combine web3, gaming, internet culture, ecommerce, and NFTs in a way that also incorporates the physical realm, including branded physical goods such as clothing, books, and beverages. In the online realm, Yuga Labs has partnered with gaming company Animoca Brands to build out a library of play-to-earn (P2E) gaming titles that feature APE crypto payments and rewards systems.