What is ApeCoin and how does it work?

The first quarter of 2022 was filled with discussions about ApeCoin (ape), an adopted cryptocurrency Boring Ape Yacht Club’s local coin (BAYC), developed by Yuga Labs. BAYC has been one of the top non-fungible token (NFT) collections with an active community since the inception of the ApeCoin DAO in April 2021.

The BAYC series showcases seemingly boring apes. Depending on your mood and choice, you can choose these apes down to the smallest detail.Investors around the world have put money into these artworks Buyers include the likes of Justin Bieber and Eminem.

As the ERC-20 governance and utility token of the APE ecosystem, ApeCoin is owned by Decentralized Autonomous Organization, or DAO. Anyone who holds tokens can vote on relevant governance decisions.

related: Types of DAOs and How to Create a Decentralized Autonomous Organization

The fact that Yuga Labs adopts APE gives it importance because it also There are CryptoPunks and Meebitsand two other first-line NFT projects.

What is the APE Ecosystem?

You might be interested in who’s behind ApeCoin. The community holders of ApeCoin and the various products/services that use the cryptocurrency together constitute the APE ecosystem. Yuga Laboratories, established Founded in 2021 and headquartered in Miami, Florida, it is a well-known name in NFTs and digital collectibles.

Yuga Labs, credited as the creator of the Boring Ape Yacht Club, is a community member of the ApeCoin DAO.they have Adopt ApeCoin as their main token in their projects. Let’s have a quick look at the collection of NFTs that are part of the APE ecosystem.

BAYC

The Boring Ape Yacht Club (BAYC) launched in April 2021 Home to 10,000 unique apes Residing on the Ethereum blockchain. Each of these unique digital collectibles has a different look, style and rarity. This series showcases algorithmically generated profile pictures of cartoon apes.

Mutant Ape Yacht Club (MAYC)

As an NFT basket of up to 20,000 variant versions of BAYC Apes, MAYC helps you get on board New to the Ape community. Initial BAYC NFT holders were given 10,000 triple-layer mutant serums via airdrop to increase the rarity of the feature.

Boring Ape Kennel Club (BAKC)

Launched on June 25, 2021 at 6:00 PM EST, Bored Ape Kennel Club (BAKC) is a variety of dog NFTs offered to every member of BAYC. Each Boring Ape NFT holder can take a random Club Dog NFT and only pay gas fees. BAKC NFTs also have their own rarity.

Metaverse

April 2022, Yuga Labs starts Casting Otherside Metaverse LandIn 45 minutes, the virtual real estate was valued at $100,000 and a total of $320 million was raised, making BAYC the largest NFT sales ever.

How does APE work?

APE token holders collectively make governance decisions, vote and decide on issues such as fund allocation, rulemaking, partnerships, project selection, and more. The ApeCoin Foundation enforces governance decisions made by the community.

as Legal representative of the DAOApe Coin Foundation beneficial to Growth of the ecosystem. The foundation has a special body called the board of directors that is responsible for implementing the community’s vision. The APE Board of Directors consists of five members from the technology and crypto communities. ApeCoin holders vote for new board members every year.

related: The Influence and Rise of DAOs in the Legal Industry

What will ApeCoin be used for?

As a governance and utility token, ApeCoin has multiple uses in the ecosystem. ApeCoin use cases include enabling holders to participate in the governance of the DAO and giving them access to the ecosystem’s proprietary features such as games, events, goods and services.

The design is the same as any other Web3 coinApeCoin can be used for payment. ApeCoin is technically accepted by most merchants Because it is a common ERC-20 token. The token has also been used as an NFT reward, and holders of BAYC can get free APE, which they can cash out immediately.

Third-party developers use ApeCoin to function in the ecosystem and integrate the token into their services, games, and various projects. For example, in Animoca Brands’ Benji Bananas, a pay-to-play (P2E) mobile game, Coins are used as incentives for players. They will be able to earn special tokens and exchange these tokens for ApeCoin while playing the game.

With ApeCoin set to integrate with the upcoming Metaverse Otherside, this could make it the most in-demand Metaverse coin this year. This will make ApeCoin a trading token on the Metaverse market. If Metaverse contains P2E elements, it may also be used to reward players.

ApeCoin Token Economics

The total supply of ApeCoin is 1 billion tokens. The contract interface does not allow any more tokens to be minted, so a cap is set.Have no combustion mechanism, so the supply will not decrease. The distribution of available tokens is as follows:

62% of the tokens are allocated to the ApeCoin DAO community. Of these, 15% found their way to BAYC and MAYC holders. BAYC holders can get 10,094 APE for each NFT they hold, while MAYC holders are entitled to 2,042 APE. The rest will be released as part of the DAO Ecosystem Fund.

16% Tokens will flow to Yuga LabsA portion of this grant will go to the charitable foundation of primatologist Jane Goodall. 14% of the tokens go to those who contributed to the launch of the ApeCoin protocol.

8% of the tokens have been reserved for the four founders of Yuga Labs and BAYC. ApeCoin Follow The concept of lock tokens Prevent Yuga Labs, BAYC founders and other release contributors from selling their assets. The ApeCoins allocated to them will not be unlocked for at least 12 months. After this duration, they have access to a specific token allocation each month.

How to buy ape coins?

You can buy ApeCoin on a cryptocurrency exchange, usually in three steps:

  • Register: On the registration page, enter your email address, contact number and username. Your email ID will be verified and you will be prompted for a strong password.
  • Full KYC: Most regulated domains require users Complete Know Your Customer (KYC) process. You will need to upload your ID and other required documents and your account will be activated within minutes.
  • Buy ApeCoin: You can now deposit your fiat currency and buy any amount of ApeCoin.

Is ApeCoin a good investment?

The fact that ApeCoin is issued by a dynamic online community like the Boring Ape Yacht Club has given it a large number of recipients from the start. Lovers of arts, culture, games and entertainment are more likely to use cryptocurrencies.Metaverse Land Sale also boost coins.

There are several reasons to buy ApeCoin, such as using APE as a payment option, NFT rewards and access Exclusive Features of the APE Ecosystem Buyers are offered several reasons to buy it. Despite all these factors, tokens are inherently associated with NFT-related volatility and you need to be careful.

the way forward

then NFTs are still hitting the crypto space, ApeCoin has successfully grabbed the limelight since its appearance. Token creators use a variety of incentives to boost their utility, such as allowing third-party developers to integrate cryptocurrencies into their projects and establishing an ecosystem fund to support projects that use the token.

The company has a range of supporting components for use cases ranging from decentralized payments to Metaverse land sales. With the development of the APE ecosystem, the value gained by ApeCoin exceeds actual expectations.