ApeCoin (APE) caused a stir in the crypto market this year as it made it into the world’s top 30 largest crypto assets despite being launched in less than a week.

 

ApeCoin is an ERC-20 governance and utility token used in the APE ecosystem to empower and incentivize the decentralized community building at the forefront of the web3.

 

ApeCoin holders govern themselves through a decentralized governance framework that controls the ApeCoin DAO and vote on how the ApeCoin DAO Ecosystem Fund should be used. The APE Foundation manages proposals approved by ApeCoin holders.

 

What is Ape Coin?

ApeCoin (APE) is a utility and governance token developed by Yuga Labs that will become a key asset in the Web3 ecosystem and metaverse, especially in the gaming, culture, and commerce sectors in the future.

 

Yuga Labs’ launch of APE in March 2022 was met with an immediate positive response from the crypto community.

 

This success was largely influenced by the popularity of the leading Non-Fungible Token (NFT) project, Bored Ape Yacht Clu (BAYC), which is also the work of Yuga Labs.

 

When introducing APE, Yuga Labs stated that the token would be a key element in the ecosystem of BAYC and other projects such as Otherside Metaverse and future products and services from Yuga Labs.

 

The concept is comparable to the role of SAND tokens in the Sandbox network and AXS in Axie Infinity.

 

APE is managed by ApeCoin DAO, a decentralized organization that allows its members to participate in the governance and future financing of the Yuga Labs ecosystem.

 

The ApeCoin DAO is supported by the Ape Foundation, a body responsible for being the supreme platform of ApeCoin and approving decisions approved by the ApeCoin DAO community.

 

Everyone who buys and deposits APE automatically becomes a member of the ApeCoin DAO.

 

As such, APE holders can use their tokens to vote on governance decisions, subsequent development, and the future direction of the Yuga Labs ecosystem.

 

More importantly, APE holders have the opportunity to propose new and innovative ideas, which can bring more cultural products into the metaverse ecosystem.

 

This aligns with the rapid development of cultural products such as art, games, entertainment, and events in the Web3 realm today.

 

Uses of ApeCoin

 

 

APE functions as a “ballot” in determining the future direction of network governance. In addition, APE also serves as a token that Yuga Labs can use in future projects.

 

However, Yuga Labs has a bigger vision for APE to become a major asset in the metaverse economy. In other words, Yuga Labs hopes that APE will be used as a means of payment in their ecosystem and other Web3 applications.

 

Yuga Labs has taken concrete steps to achieve this goal. For example, the play-to-earn game developed by Animoca Brands, Benji Bananas, has adopted APE as a key asset in its game.

 

In addition, on March 16, 2022, game developer nWayPlay announced that they would use APEs in their latest play-to-earn game based on BAYC. Furthermore, here are the real-world uses of APEs, among others:

 

• TIME Magazine has announced that they will accept APE as an official payment method for their digital subscriptions.
• In addition, rappers Snoop Dogg and Wiz Khalifa have released eight songs together that can be purchased using APE.
• The E11even property complex in Miami, USA, accepts payment for their condominiums as APE assets.
• Florida, USA-based beer producer Saltwater Brewery gives a 50% discount to customers who use APE to purchase their products.

 

Ape Coin Governance Structure

Previously, you may have been familiar with the parties involved in APE operations, such as the ApeCoin DAO, Ape Foundation, etc. However, what is the role of each of them in more detail? Here is an explanation of each of them, namely:

 

1. ApeCoin DAO

ApeCoin DAO was formed because decentralized governance systems are crucial in building and managing widespread global communities.

 

Through this DAO, ApeCoin DAO members can vote on decisions regarding ApeCoin ecosystem funding, network regulations, and future projects and partnerships, which are generally proposed through APE Improvement Proposals.

 

2. APE Foundation

The Ape Foundation serves as the guarantor body of the ApeCoin network. It is not a watchdog but rather an entity that facilitates the decentralized governance agreed upon by the community and ensures the continuity of the decentralized system on the network.

 

Therefore, the APE Foundation is responsible for authorizing all decisions made by the ApeCoin DAO.

 

In addition, it is also responsible for day-to-day administration, project management, and other tasks that ensure that the ideas of the DAO community are realized.

 

In addition, the APE Foundation is also responsible for managing ecosystem funds and paying other expenses as instructed by the ApeCoin DAO.

 

Furthermore, the APE Foundation provides the infrastructure for ApeCoin holders to collaborate through an open and seamless governance process.

 

3. APE Foundation Board

The APE Foundation Board is a specialized body responsible for overseeing all operations and governance within the APE Foundation.

 

It is the final authorizer of all DAO proposals, reviewing all future network development proposals and providing direction to the community.

 

APE Foundation Board members serve a six-month term. After this period ends, DAO members will vote to find new members.

 

4. Yuga Labs

Yuga Labs, the developer of Apecoin, is a Web3 and blockchain company focused on developing NFTs and digital collectibles through a story, experience, and community approach. In the Yuga ecosystem, fans and players are considered owners and creators.

 

Founded by Wylie Aronow and Greg Solano in 2021, Yuga Labs has managed to attract a total funding of $4,000,000,000 as of June 2022 from leading crypto venture capital firms worldwide, including Andreessen Horowitz (a16z), Coinbase, and Friendly Trading.

 

One of Yuga Labs’ notable projects is the Bored Ape Yacht Club (BAYC), a collection of 10,000 NFT artworks featuring images of apes with diverse expressions.

 

The company introduced the BAYC NFT in April 2021, becoming one of the most valuable NFT projects in market capitalization.

 

In addition, Yuga Labs has also acquired the intellectual property rights of previous NFT projects such as CryptoPunks and Meebits.

 

Although Yuga Labs developed ApeCoin, they do not directly manage it. Instead, the governance of ApeCoin is left entirely to the ApeCoin DAO. Why is this the case? Here’s why:

 

• This dichotomy stems from the thinking of William Hinman, a former official of the US Capital Markets Authority (Securities and Exchange Commission/SEC) who is currently in a prominent position at a16z. Hinman argues that decentralized institutions can freely issue tokens without registering them with the SEC, provided they are truly decentralized. In the context of the ApeCoin ecosystem, ApeCoin DAO is considered a decentralized institution, while Yuga Labs does not meet that condition.

 

• APE aims to become a major asset in the Web3 economy and metaverse and thus should not be tied to other Web3 or metaverse projects.

 

Tokenomics Aspect of Ape Coin

 

 

APE has a total limited supply of 1,000,000,000 pieces worldwide. In other words, the developer will not add or burn its supply, so it will remain at 1 billion pieces forever.

 

Here is the breakdown of APE allocations, namely:

 

• ApeCoin DAO/Ecosystem Fund: 47%
• Community airdrop: 15%
• Yuga Labs: 15%
• Parties that helped launch APE: 14%
• Founders: 8%
• Charities: 1%

 

Despite its limited supply, APE is not yet fully in circulation. This is due to the concept of “token locking,” which dilutes the actual supply and gives the impression that the APE supply is larger than it is.

 

For example, Yuga Labs, the party that helped launch APE, and the founders of BAYC were required to lock their tokens for a year. The plan is to circulate the entire APE supply by 2026 fully.

 

Strengths and Critiques of ApeCoin

The following are some of the strengths and criticisms of ApeCoin that are important to know, among others:

 

Strengths

 

• Yuga Labs has strong funding and is currently valued at $4,000,000,000.
• APE is associated with the Bored Ape Yacht Club (BAYC), one of the largest and most valuable NFT projects and communities.
• Yuga Labs’ track record in developing crypto projects is proven.
• The Web3 projects developed by Yuga Labs have excellent prospects.
• BAYC is one of the first NFTs to receive mainstream attention, allowing APE to become a major currency in the Web3 ecosystem and metaverse.
• Yuga Labs is a pioneering company focused on developing metaverse projects that cross multiple networks.

 

Criticisms

 

• There are concerns that the value of ApeCoin supply may be diluted over time.
• Currently, ApeCoin is known as a governance token with no clear utility benefits
• There are concerns over Yuga Labs’ reputation after another project, Otherside Land, experienced technical issues that caused disruptions in the Ethereum network

 

The Potential of ApeCoin Ecosystem

ApeCoin has great potential to play an important role in future innovation and development, especially with its involvement in projects like Otherside Metaverse.

 

As part of a growing ecosystem, Ape Coin can also catalyze exciting and revolutionary new projects in the Web3 and metaverse space.

 

Through its association with leading projects such as the Bored Ape Yacht Club (BAYC) and Otherside Metaverse, ApeCoin has a great opportunity to become a major asset in the Web3 economy and metaverse.

 

As a decentralized and finite asset, ApeCoin could be an attractive option for users and investors involved in these ecosystems.

 

Through strong support and adoption, ApeCoin could be important in facilitating transactions and interactions across the future digital economy.

 

Conclusion

To conclude, ApeCoin is a crypto token developed by Yuga Labs with the aim of becoming an important asset in the Web3 ecosystem and metaverse.

 

ApeCoin has a total limited supply of 1,000,000,000 pieces, thus providing a sense of security to its holders and creating upward pressure on the price due to increased demand.

 

While ApeCoin is currently recognized as a governance token, there is still uncertainty regarding its utility within the Yuga Labs ecosystem, which may affect investor interest and confidence in the asset.

 

ApeCoin has great potential to play a role in future innovation and development, primarily through projects such as Otherside Metaverse.

 

With its ties to leading projects in the NFT and metaverse space, ApeCoin stands a good chance of becoming a major asset in the Web3 and Metaverse economy in the future.

 

Interested in Buying Ape Coin Crypto Asset?

Now you understand Ape Coin, starting with its uses and potential.

 

You can also read various interesting articles about blockchain technology on INDODAX Academy.

 

Furthermore, if you are interested in investing in Apecoin crypto assets, you can buy it on the INDODAX Market.

 

Before buying it, you can check the price of Ape Coin first. After checking the price, you can buy crypto assets on the trusted and best crypto exchange in Indonesia, INDODAX.

 

INDODAX is Indonesia’s best platform for investing, buying, and selling crypto assets.

 

As a pioneer in crypto trading in the country, INDODAX has built a good reputation regarding crypto asset trading services. INDODAX also continues to facilitate investors’ access to the crypto asset market.

 

As a disclaimer, it is important to remember that investing in crypto assets can carry a high risk due to significant fluctuations in value.

 

Therefore, it is highly recommended that you do in-depth research before starting a crypto asset investment.

 

What are you waiting for? Let’s start investing in crypto assets with INDODAX right now!