ApeCoin is a cryptocurrency that functions as the native and utility token of the Bored Ape Yacht Club (BAYC) ecosystem, as well as the governance token of the ApeCoinDAO. Yuga Labs introduced the token to decentralize the administration of the BAYC community, establish a financial stronghold to support the ecosystem’s growth, and provide benefits and privileges to its holders.
ApeCoin offers various benefits and privileges to its holders within the Bored Ape ecosystem, especially when used with Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), or Bored Ape Kennel Club (BAKC) non-fungible tokens (NFTs). It allows holders to participate in decision-making processes related to the BAYC ecosystem and acts as a store of value and a reward token in decentralized gaming applications. These incentives encourage users to engage with the applications and contribute to the growth of the BAYC ecosystem.
ApeCoin is an ERC-20 token built on the Ethereum blockchain with a finite total supply of 1 billion tokens. The contract interface ensures that no additional tokens can be minted, creating a cap. ApeCoin does not have a burning mechanism, meaning the token supply will remain constant and not decrease.
The token distribution is divided into several categories, with the largest allocation of 62% going to the ApeCoin DAO community. Out of this allocation, 15% is reserved for Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) NFT holders. BAYC NFT holders can claim 10,094 ApeCoin tokens for each NFT they own, and MAYC holders are entitled to 2,042 ApeCoin tokens. The remaining portion of the 62% allocation will be released as part of the DAO’s ecosystem fund.
16% of the total supply is allocated to Yuga Labs, the creators of ApeCoin. A percentage of this allocation is dedicated to the Jane Goodall Foundation, a charitable organization that supports wildlife conservation. 14% of ApeCoin tokens are reserved for individuals who contributed to the ApeCoin protocol’s launch.
Finally, 8% of the total supply is set aside for the four founders of Yuga Labs and BAYC. To prevent Yuga Labs, the founders of BAYC, and other launch contributors from selling their holdings, ApeCoin uses the concept of locked tokens. The tokens allocated to them are not accessible for at least 12 months, and after this duration, a specific allotment of tokens becomes available to them on a monthly basis.
The APE ecosystem is a decentralized network of NFT collections and services that use ApeCoin as their primary token. Yuga Labs, a company based in Miami, Florida, is a member of the ApeCoin DAO and supports the ecosystem by using ApeCoin in its projects.
The Bored Ape Yacht Club (BAYC) is one of the main NFT collections in the APE ecosystem, featuring 10,000 unique algorithmically generated cartoon apes residing on the Ethereum blockchain, each with distinct appearances, styles, and rarities.
Another NFT collection in the APE ecosystem is the Mutant Ape Yacht Club (MAYC), which comprises up to 20,000 mutated versions of the BAYC apes. The MAYC aims to onboard new members to the Ape community. Original BAYC NFT holders received 10,000 mutant serums in three tiers via airdrop to add rarity to the traits.
Lastly, the Bored Ape Kennel Club (BAKC) is a collection of dog NFTs launched in June 2021 and is available to every BAYC member. Similar to BAYC and MAYC, BAKC NFTs have their own unique rarities. Bored Ape NFT holders can easily adopt a random Club Dog NFT by paying only for gas.
Yuga Labs is currently working on developing Otherside, a gamified metaverse that combines the features of MMORPGs and web3-enabled virtual worlds. Otherside will feature high-end 3D graphics and virtual reality technologies, as well as NFT technology and decentralized payment systems. The company plans to introduce ApeCoin as the primary payment method within Otherside. Players will be able to buy in-game NFTs and pay for character upgrades and benefits using ApeCoin.
ApeCoin serves as the native token for projects within the Ape ecosystem and is expected to become the primary mode of exchange for purchases in new projects that join the ecosystem. Amonicabrands has already integrated ApeCoin into its GameFi platform, Benji Bananas, allowing players to earn in-game tokens that they can exchange for ApeCoin.
ApeCoin has emerged as a promising governance and utility token. Its adoption by other GameFi and NFT projects, as well as its crucial role in the Otherside metaverse project, demonstrate its potential beyond the initial hype. As the landscape of Web3 and blockchain continue to evolve, the expanding utility and relevance of ApeCoin present exciting opportunities for growth and development.