Understanding ApeCoin: The BAYC Ecosystem Token, Economic Model, and Airdrop Rules
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Understanding ApeCoin: The BAYC Ecosystem Token, Economic Model, and Airdrop Rules
A cultural, gaming, and business token for building decentralized communities at the cultural frontier of Web3.
Navigating Web3 tides with focused insightsAuthor: TechFlow Freelancer
Waking up to the news: Bored Ape Yacht Club has launched its token—ApeCoin. Exchanges like Coinbase and FTX quickly listed it. According to Yuga Labs, ApeCoin serves as the primary cryptocurrency for the Bored Ape Yacht Club ecosystem and future Yuga products and services.
On the official website, a prominent tagline reads: APECOIN IS FOR THE WEB3 ECONOMY.
“Culture has found new expressions in Web3 through art, gaming, entertainment, and events. The possibilities of blockchain’s impact on culture are so vast and limitless that they cannot yet be fully predicted. APE is a token built to support the next frontier, controlled and developed by the community. It will serve as a decentralized protocol layer for community-led initiatives driving culture into the metaverse.”
Cultural folks express themselves uniquely. Though I’m still not entirely sure what it all means, at least now I know it’s the official token of the Bored Ape Yacht Club—a cultural, gaming, and commercial token designed to build decentralized communities at the forefront of Web3 culture.
Currently, ApeCoin is owned and operated by the ApeCoin DAO. Each token holder can vote on governance and usage of the ecosystem fund. Holding ApeCoin is the prerequisite for participating in the ApeCoin DAO. This DAO is supported by the Ape Foundation, established to act as the legal steward of ApeCoin and to implement decisions made by the ApeCoin DAO community (someone needs to sign the checks). Additionally, a high-profile foundation board provides oversight.
In terms of token distribution, 62% of the total ApeCoin supply is allocated to the ApeCoin community, with 15% of the total supply going directly to BAYC/MAYC holders.
The Three Key Organizations Behind ApeCoin
Behind ApeCoin are three main organizations: the Ape Foundation, the ApeCoin DAO, and the Board of Directors.
The Ape Foundation governs ApeCoin. It is not a supervisory body but rather the foundational layer upon which ApeCoin holders in the ApeCoin DAO can build. Its mission is to manage decisions made by the ApeCoin DAO and handle day-to-day operations, record-keeping, project execution, and other tasks to ensure that ideas from the DAO community are supported and realized.
The ApeCoin DAO exists because decentralized governance is crucial for building and managing a globally distributed community. The APE Improvement Proposal (AIP) process allows members of the ApeCoin DAO to make decisions regarding the allocation of the ecosystem fund, governance rules, projects, partnerships, and more. Membership in the ApeCoin DAO is open to all ApeCoin holders.
The Board of Directors is a special committee of the Ape Foundation, tasked with overseeing the foundation's managers at the request of ApeCoin DAO members, managing DAO proposals, and serving the community. The initial term for the board is six months, after which DAO members will vote annually on board membership.
Current board members include:
Alexis Ohanian
Co-founder of Reddit; Founder of 776 (VC)
Amy Wu
Head of FTX Ventures & Gaming
Maaria Bajwa
Principal at Sound Ventures
Yat Siu
Co-founder of Animoca Brands
Dean Steinbeck
President and General Counsel of Horizen Labs
So, Web3 remains the playground of the elite.
Apecoin
ApeCoin is an ERC-20 governance and utility token used within the APE ecosystem, functioning as an open-source protocol layer. ApeCoin serves several key purposes:
Governance: ApeCoin is the governance token of the ecosystem, allowing holders to participate in the ApeCoin DAO.
Unified Spending: ApeCoin acts as a utility token, providing a shared and open currency for all participants across the ecosystem.
Access Rights: ApeCoin grants access to certain exclusive parts of the ecosystem otherwise unavailable, such as special games, merchandise, events, and services.
Incentives: ApeCoin enables third-party developers to engage with the ecosystem by integrating APE into their services, games, and other projects.
Token Distribution
The total supply of ApeCoin is permanently capped at one billion tokens. In line with standard practice, portions allocated to project contributors are initially locked. Starting from the launch date on March 17, 2022, these locked tokens will unlock over a 48-month schedule as outlined below.
The token distribution is divided into four main categories:
Ecosystem Fund (62%): Of this, 150 million tokens (15% of total supply) were airdropped to BAYC/MAYC holders, fully unlocked at launch. The remaining 47% goes to the DAO treasury, with 117 million tokens initially unlocked and the rest gradually released over 48 months.
YUGA LABS + Charities (16%): 15% allocated to Yuga Labs and 1% to the Jane Goodall Legacy Foundation, subject to a one-year lock-up followed by a 36-month linear unlock.
Launch Contributors (14%): Allocated to companies and individuals who helped bring the project to life.
BAYC Founders (8%): Distributed among the four founders, with a 12-month lock-up followed by a 36-month gradual release.
Regarding the airdrop, distribution to BAYC/MAYC members began on March 17, 2022, at 8:30 AM Eastern Time via the claim portal. The specific allocation rules were as follows:
Bored Ape: 10,094 tokens
Mutant Ape: 2,042 tokens
Bored Ape + Kennel Club (no ID matching required): 10,950 tokens
Mutant Ape + Kennel Club (no ID matching required): 2,898 tokens
Airdropped tokens associated with any NFT can only be claimed once.
Rumors and Expectations
Many in the community have high hopes for the project, primarily driven by the powerful influence of BAYC, which could enable the creation of a full ecosystem—a true BAYC metaverse. The latest rumor is that Yuga Labs, the company behind BAYC, plans to launch MetaRPG, a game-centric metaverse expanding the BAYC universe.
It’s rumored that Yuga Labs plans two metaverse land sales in March and August this year to raise funds, offering a total of 200,000 plots. Additionally, Yuga Labs will collaborate with Animoca Brands to develop a racing game.
Time will tell.
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