What is APE Coin? The Cryptocurrency Behind Bored Ape Yacht Club NFTs


The Bored Ape Yacht Club and associated NFT collections have become one of the most discussed topics of 2021, and the buzz doesn’t seem to die down in 2022.

Something that the team had hinted at a few months ago was the creation of a native cryptocurrency, the APE coin, which would power the entire ecosystem. Now this has become a reality.

In this article, we take a closer look at the long-awaited APE coin from Yuga Labs, the creators of the Bored Monkeys Yacht Club – and everything you need to know about it.

What is APE currency?

In a nutshell, APE Coin is the native cryptocurrency of the BAYC ecosystem. It is designed to be the decentralized protocol layer for various initiatives that the community is supposed to lead.

It is based on Ethereum’s ERC-20 token standard, and its address can be found here. The cryptocurrency is traded on some of the biggest exchanges like Binance, FTX, Huobi, KuCoin, Bybit, Kraken, etc.

APE Tokenomics

The total APE supply is set at 1 billion tokens. There are no capabilities to mint additional tokens through its contract interface, and this supply should never increase. In addition, there is no recording capacity either, so the supply will not decrease either.

The total supply is distributed as follows:

Distribution of APE tokens. Source: Official Website

150 million ecosystem fund tokens were airdropped to BAYC-related NFT holders in the following ratios:

  • Bored Ape NFT = 10094 tokens
  • Mutant Ape = 2042 tokens
  • Bored Monkey + Kennel Club = 10,950 Tokens
  • Mutant Ape + Kennel Club = 2898 Tokens

470 million tokens from the same fund will go to the DAO treasury and resources, of which 117,500,000 will be unlocked at launch and 7,343,750 will be unlocked monthly for 48 months.

The 16% that will go to Yuga Labs and charity is divided as follows:

  • 150 million will go to Yuga Labs under a 12 month lock and then 4,166,666.67 unlocked tokens per month for 36 months.
  • 10 million tokens or equivalent value will be donated to the Jane Goodall Legacy Foundation with an initial lock of 12 months and 277,777.78 tokens unlocked per month for the following 36 months.

There is also 14% to release contributors who are under different locks, and 8% of the tokens will go to BAYC founders under a 12 month lock and 2,222,222.22 tokens unlocked per month after that.

The Ape Foundation and the DAO

Managing the APE currency is the foundation of the ape: it is the base layer where holders and the DAO can build. According to the official website:

The Foundation facilitates decentralized, community-led governance and is designed to become more decentralized over time. It is tasked with managing the decisions of the ApeCoin DAO and is responsible for day-to-day administration, accounting, project management, and other tasks to ensure that the DAO community’s ideas have the support they need to become reality.

The DAO itself, on the other hand, exists to empower the community of APE holders. The ape enhancement proposal processes would allow DAO members to make decisions about Ecosystem Fund applications, projects, partnerships, and more.

The DAO board will act as a council of the APE Foundation, and its members are tasked with supervising the Foundation’s administrators. The Board is intended to administer DAO proposals and serve the overall vision of the community. These are the initial members of DAO:

apes_1
DAO Board Members represented by their boring APE NFTs.

These are:

  • Alexis Ohanian from Reddit
  • Amy Wu – head of business and gaming at FTX
  • Maaria Bajwa – director of sound companies
  • Yat Siu – co-founder and president of Animoca Brands
  • Dean Steinbeck – president and general counsel of Horizen Labs

The APE coin protocol

As mentioned above, APE is an ERC-20 token that serves governance purposes, but also provides utility when used within the APE ecosystem.

The open source protocol layer of the entire ecosystem has a few purposes to serve:

APE serves as a tool for developers to participate in the ecosystem by incorporating it into their products, games, services, etc.

As explained above, governance is one of the main purposes behind APEs as it allows holders to participate in the DAO.

Cryptocurrency provides access to some parts of the ecosystem that are otherwise unavailable. These would include products, events, games, etc., exclusive to the holders.

Being the utility token of the ecosystem, APE also provides its participants with a currency that can be used without centralized intermediaries.

How to buy APE coins

As mentioned above, APE is already listed and listed on some of the major exchanges such as Binance, Coinbase, FTX, Huobi, KuCoin, Bybit, Kraken, etc.

However, at the time of writing, most of the liquidity appears to be on the Binance exchange and is focused on the APE/USDT and APE/BUSD pairs.

Users who do not have an account can take a look at our complete guide.

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