ApeCoin (APE), the Ethereum-based token built for the Bored Ape Yacht Club’s (BAYC) non-fungible token (NFT) ecosystem, launched this past March. The project’s contributors will receive more than $115 million worth of APE tokens, but BAYC NFT holders wonder how that will affect the price. According to the ApeCoin website, 25 million APE tokens will be released to “launch contributors” on Saturday, which refers to unnamed “companies and people who helped make this project a reality.” There are 1 billion ApeCoins in total, with 62% going to the ecosystem fund, 16% to Yuga Labs, 8% to the Bored Ape Yacht Club (BAYC) founders, and 14% to launch contributors. New research from Delphi Digital suggests that this list of contributors could include Yuga Lab’s backers, which raised $450 million at a $4 billion valuation in March. The Yuga and BAYC founder tokens are scheduled for next March, and this weekends tokens from the token supply are allowed to contributors.
What Is Apecoin
ApeCoin is a token for culture, gaming, and commerce to empower a decentralized community building at the forefront of web3. By aligning incentives and giving users skin in the game, they can build a community that is both strong and agile enough to take on the challenges of building a new internet. The response from the community has been overwhelmingly positive, with over $1 million worth of ApeCoins already sold in the presale. Back in March and according to Twitter, the airdrop claim consisted of 15% of the total supply of ApeCoin was made available to @BoredApeYC NFT holders, and 8% went to the founders of BAYC, while 47% will be released over time as part of DAO’s ecosystem fund.
In addition to its current use as a utility token, it has been used as a governance token by ApeCoin DAO, the decentralized autonomous organization that governs the token and its roadmap. However, its most interesting application to date appears to be as a utility token inside the Otherside metaverse platform which is themed around Bored Apes.
How does staking work?
Crypto staking is the process of holding crypto assets in order to earn rewards. It usually involves delegating one’s crypto holdings to a validator, which then uses them to help secure a blockchain network. In return for their service, validators receive rewards in the form of new coins or tokens. For crypto investors, staking can be an attractive way to earn passive income, as it typically requires little effort beyond setting up the initial delegation. Furthermore, crypto assets that are being staked typically remain under the investor’s control, allowing them to easily sold or transferred if desired. As such, staking can be a popular way to generate returns on one’s crypto holdings without having to sell them.
The Motivation Behind Staking For ApeCoin
As part of the announcement, ApeCoin will launch a staking program. The ApeCoin community voted in May to pick Horizen Labs to build ApeCoin, Bored Ape, and Mutant Ape NFT staking platforms that will offer token rewards to users.
According to the ApeCoin website:
Staking models should seed the growth of the related token and NFT ecosystem. They can do this by expanding the audience while incentivizing early adopters and existing ecosystem participants. One core goal of this AIP is to ensure that the staked BAYC ecosystem NFTs remain tradable regardless of a specific NFT’s status in relation to a stake, so that the growth of the ecosystem isn’t constrained by the lockup of staked assets. This allows new users to always have the opportunity to participate in staking after the launch of any staking period (each, a “Period”), by continuing to grant access to any BAYC ecosystem NFTs.
Who Qualifies To Stake:
According to the ApeCoin website, these are the qualifications to Stake: Those who qualify to stake are the holders of ApeCoin, BAYC, MAYC, and BAKC NFTs. Staking ApeCoin directly can be up to any amount during the Period, but staking it in association with an NFT can be up to the following caps:
BAYC NFT: 10,094 ApeCoin
MAYC NFT: 2,042 ApeCoin
BAKC NFT: 856 ApeCoin
ApeCoin Stake: The Good and The Bad
Here’s the good stuff:
Staking gives early adopters of NFTs the ability to earn passive income! So if you got into ApeCoin early on, you could be rewarded as a coin holder without any heavy lifting.
Before selling your NFT, you will need to unstake your ApeCoin because forgetting means the new buyer will get all your ApeCoin and the interest you made.
The company is hosting a Twitter space on October 31st to update the community on the latest developments.