What is ApeCoin and how does it work?

What is ApeCoin and how does it work? – Mail Bonus

The first quarter of 2022 was buzzing with talks about ApeCoin (APE), a cryptocurrency used to be the native currency of the Bored Ape Yacht Club (BAYC), developed by Yuga Labs. Since the creation of ApeCoin DAO in April 2021, BAYC has been one of the top inflexible symbol collections (NFT) with a vibrant community.

The BAYC Museum shows monkeys that seem bored. Depending on your mood and choice, you can choose this monkey down to the smallest detail. Investors around the world have invested their money in these works of art and buyers include Justin Bieber and Eminem.

As an ERC-20 management and utilization symbol of the APE ecosystem, ApeCoin is managed by a decentralized independent organization, or DAO. Anyone holding the currency is allowed to vote on the relevant government decisions.

Connected: Types of DAOs and how to create a distributed independent organization

The fact that APE is approved by Yuga Labs gives it a lot of power, as it also has CryptoPunks and Meebits, two other frontline NFT projects.

What is the APE ecosystem?

You may be interested in who is behind ApeCoin. The community owners of ApeCoin and various products / services that use the cryptocurrency form the APE ecosystem. Yuga Labs, established in 2021 and headquartered in Miami, Florida, is a prominent name in NFT and digital collectibles.

Yuga Labs is praised as the author of the Bored Ape Yacht Club and serves as a community member of ApeCoin DAO. They have adopted ApeCoin as their main brand in the projects they undertake. Let’s learn concise information about the NFT libraries that are part of the APE ecosystem.

BAYC

Bored Ape Yacht Club (BAYC) was launched in April 2021 and offers 10,000 unique monkeys living on the Ethereum blockchain. Each of these unique digital collectibles has a different look, style and rarity. The collection shows algorithms produced profile pictures of cartoon monkeys.

Mutant Ape Yacht Club (MAYC)

As an NFT basket with up to 20,000 mutant versions of BAYC Apes, MAYC assists new members of the Ape community on board. The original BAYC NFT holders were delivered 10,000 mutations in three batches of serum through air droplets to add rare properties.

Bored Ape Kennel Club (BAKC)

The Bored Ape Kennel Club (BAKC) was launched at 18:00 EST on June 25, 2021 and is a selection of NFT dogs that are accessible to every single member of BAYC. Holders of each Bored Ape NFT can pick up a random Club Dog NFT, while paying only for gasoline. BAKC NFTs are also rare.

Otherside metaverse

In late April 2022, Yuga Labs began hitting Otherside metaverse countries. Within 45 minutes, the virtual property was valued at $ 100,000 and raised a total of $ 320 million, making BAYC the top-selling NFT.

How does APE work?

APE holders make joint management decisions, cast their ballots, and decide on issues such as allocation of funds, rules, collaboration, project selection, and more. The ApeCoin Foundation implements community-made governance decisions.

As a legal representative of DAO, the ApeCoin Foundation facilitates the growth of the ecosystem. The agency has a special agency called the government that implements the future vision of the community. The APE Board consists of five members from the technology and cryptocurrency community. ApeCoin owners elect new board members annually.

Connected: Impact and rise of DAOs in the legal industry

What will ApeCoin be used for?

As a management and leverage symbol, ApeCoin serves many purposes in the ecosystem. ApeCoin uses include enabling owners to participate in DAO management and enabling them to access the exclusive features of the ecosystem, such as games, events, merchandise and services.

Designed like any other Web3 currency, ApeCoin can be used for payments. ApeCoin is technically acceptable to most traders because it is an extended ERC-20 token. The coin is also already in use as an NFT prize and holders with BAYC receive a free APE which they can pay immediately.

Third-party developers use ApeCoin to play a role in the ecosystem and incorporate the symbol into their services, games and various projects. For example, in Benji Bananas from Animoca Brands, a mobile game that can be played to earn (P2E), the coin is included as an incentive for players. They will be able to earn special tokens when they play and swap these tokens for ApeCoin.

With ApeCoin designed to be integrated with the upcoming Metaverse Otherside, which could make it a sought-after metaverse currency this year. This will make ApeCoin a trading symbol in metaverse marketplaces. If Metaverse includes P2E elements, it could also be used to reward players.

ApeCoin tokenomics

ApeCoin has a total availability of 1 billion tokens. The negotiation interface means that it is not possible to enter more symbols and thus put an end to it. There is no incinerator either, so the supply will not decrease. The distribution of available symbols is as follows:

62% of the tokens are allocated to the ApeCoin DAO community. In between, 15% find their way to the owners of BAYC and MAYC. BAYC holders can claim APE 10,094 for each NFT they own, while MAYC holders are entitled to 2,042 APEs. The remainder will be released as part of the DAO Ecosystem Fund.

16% of the tokens will go to Yuga Labs. Part of this allocation will go to the charity of primatologist Jane Goodall. 14% of the tokens are for the people who contributed to launching the ApeCoin protocol.

8% of the tokens have been set aside for the four founders of Yuga Labs and BAYC. ApeCoin follows the concept of locked tokens to prevent Yuga Labs, the founders of BAYC, and other promotional participants from selling their property. ApeCoin allocation to them is not opened for at least 12 months. After this duration, a certain allocation of symbols will be available to them on a monthly basis.

How to buy ApeCoin?

You can buy ApeCoin in cryptocurrency, usually through a three-step process:

  • Sign up: On the registration page, enter your email address, contact number and username. The system will verify your email address and ask you to enter a strong password.
  • Complete KYC: Most regulatory domains require users to complete the Know Your Customer (KYC) process. You will need to upload your ID and other required documents and your account will be up and running in minutes.
  • Buy ApeCoin: You can now deposit your fiat and buy as many ApeCoin as you want.

Is ApeCoin a good investment?

The fact that ApeCoin has been released by a powerful online community like the Bored Ape Yacht Club has given it a stream of takers right from the start. Fans of art, culture, games and entertainment are more likely to use the cryptocurrency. Metaverse’s land sales will also increase the currency.

There are several reasons to buy ApeCoin such as using APE as a payment option, NFT rewards and accessing exclusive rights in the APE ecosystem gives buyers some reasons to buy it. Despite all these factors, the currency is inherently linked to NFT-related fluctuations, which you need to take care of.

The road ahead

At a time when NFTs are still storming into the cryptocurrency arena, ApeCoin has managed to steal the spotlight since its inception. The token authors have used several incentives to promote its usefulness, such as allowing third-party developers to integrate the cryptocurrency into their projects and set up an ecosystem fund to support the projects that use the currency.

With use cases ranging from distributed payments to the sale of land on metaverse, the company has various support components available. As the APE ecosystem grows, ApeCoin gains more value than can be expected.