The world of blockchain is starting to reach much further than just investing or speculation. With the coming of Web3, the Metaverse and NFTs you are now able to create an online presence that is completely based on your interest in blockchain technology. With a new blockchain culture focused around art, music, gaming, events and entertainment, whole new communities have grown completely focusing on these new types of blockchain innovation.
One of the most well-known communities taking part in this revolution is the ApeCoin DAOand in this deep dive, you’ll read everything you need to know about them!
ApeCoin (APE) is the governance and utility token of the APE ecosystem. The ApeCoin is an ERC-20 token on the Ethereum blockchain, build to control and govern the ApeCoin DAO and ecosystem. It is currently the 2nd largest DAO with a market cap of ~$4.7B and the current token price is $4.67 (1–9–22). The ApeCoin DAO is a decentralized organization that allows all APE holders to vote on governance decisions related to the token and the organization. In the DAO the community decides what happens regarding events, merchandise, promotion and how the DAO itself is running. The APE tokens are also used to pay holders of Bored Apes (BAYC) and Mutant Apes (MAYC) NFTs.
So, what gives ApeCoin its value?
The Bored ape and Mutant ape NFTs belong to one of the most well-known collections currently available, with floor prices of 80 and 14 ETH respectively. As ApeCoin is the currency of this well-respected project it receives much attention and therefore gains much of its value. Next to the governance and voting rights holding the APE token gives you, the token also grants you access to a whole ecosystem based and built upon ApeCoin. Projects are incorporating APE in games, merchandise, and events which increase the exposure and value of the token holds.
Yes, you heard it right. ApeCoin is so big that it even starts to flow into the real world! Recently, Eminem and Snoop Dogg performed at the MTV VMA awards using their Bored Ape NFTs as the main video clip characters. Even crazier is the in April 2022 opened Bored Ape Yach Club restaurant “Bored & Hungry”, located in California. The restaurant sells fast food that is themed after the Bored APE#6184, accepting payments in APE!
The ApeCoin community governs itself via the ApeCoin DAO. The DAO follows a proposal process to vote on how the APE treasury will be distributed by the APE Foundation with the goal to promote a diverse and self-sustaining ecosystem. The only requirement for participants to participate in the governance of the DAO is to hold APE tokens. Next to the DAO there also exists the APE Foundation, responsible for managing the DAO and its community, as well as a board that’s responsible for administering the proposals. Curious about how this all works together? Read on!
The ApeCoin Foundation
The APE Foundation is the steward of ApeCoin. It is not an oversightr, but the base layer on which ApeCoin holders in the ApeCoin DAO can build. The Foundation facilitates community-led and decentralized governance, whilst also managing the community and projects running in the DAO. This involves project management, administration, bookkeeping and other tasks to ensure the DAO functions as it should. The Foundation is responsible for paying and managing projects and incentives accepted through APE Improvement Proposals (AIP) using the Multsig wallet helping the growth and development of the APE ecosystem.
The role of Yoga Labs
Yuga Labs is a Web3 company best known for the creation of the BAYC and MAYC NFT collections. Part of ApeCoins’ circulating supply (about 16%) is flowing towards Yuga Labs to support their business and its developments. Part of the holdings are donated to the Jane Goodall Legacy Foundation as a charity incentive to fight for a better world. Yuga Labs is also a community member active in the ApeCoin DAO.
The role of the board
The board in ApeCoins DAO is responsible for administrating the improvement proposals submitted by the community. If a proposal is submitted, the board will check if it meets the requirements and is not ambiguous. They make sure no proposals are executed that could harm the DAO. Every year the community votes on who may enter the board, so if you feel ambitious you may want to run for a spot!
To participate in the DAO you want to actively suggest Ape Improvement Proposals (AIP) and vote on active proposals. Every Thursday the foundation releases a batch of new AIPs for the community to vote on. The primary source for sharing is their website, as well as their Twitter. If you want to start contributing as well keep on reading!
Ape Improvement Proposals
Anytime you have an idea that could benefit the APE community, you’ll need to create an AIP. This could be anything from creating new merch, changing the structure of the DAO or even collaborating with a partner. You will need to propose the idea by creating a draft and presenting it to the rest of the community. Once the moderators approve the AIP draft it will be reviewed by the Foundation, before it will be posted for the community to vote on. If during the review or during the draft the AIP does not meet the requirements, either for creating a proposal or for what the proposal implies, it will be returned to the submitter to improve it. You can find all the rules for submitting a successful AIP on the ApeCoin governance page!
ApeCoin DAO’s consensus mechanism aims to make placing votes fair, transparent, and low-cost. To enable this, ApeCoin employs the gasless voting technology built by Snapshot. Although gasless, Snapshot still ensures transparency. The voting process requires all active community members to vote on the AIPs. The AIPs are open for 6 days, and after it has been accepted the community will start working on them as specified in the initial proposal. DAO members also have the ability to delegate their voting power to others.
ApeCoin, its DAO and their NFTs have been revolutionizing the space since the start of the NFT era, and they have been making headlines for quite some time now. Their DAO follows the core concept of running a decentralised organisation, giving the whole community a fair chance to contribute to the APE ecosystem. Large names like Eminem and Snoop Dogg promoting their Bored Apes in their music makes that the ApeCoin DAO is more alive than ever and that’s what ultimately gives the ecosystem its value. ApeCoin is definitely worth checking out if you want to be part of a big and active community, and it will most certainly make more headlines in the future!
Note; This article was written for DAOHQ as part of their deep-dive DAO program. I don’t earn anything from posting this to my own blog. 🙂
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