The ApeCoin project entered the crypto space on 17 March 2022. Many crypto investors are closely watching the BAYC-inspired decentralized project, which shows immense potential. The project’s native token is APE. Let us delve deeper to understand the functioning of ApeCoin, the project, and APE, the token.
Introduction to APE
The crypto market is constantly evolving with the introduction of new coins. APE is an ERC-20 utility and governance token that empowers and incentivizes a decentralized community in Web3. It has attracted much interest due to its ability to vote on how the ApeDAO Ecosystem Fund should be used.
What is APE token?
The multipurpose utility token known as APE is essential to the APE ecosystem. Users can participate in governance, stake their tokens for high returns, add liquidity to the ecosystem, and receive rewards. There is no burning mechanism, and APE has a fixed supply of 1 billion tokens. Currently, about 318 million tokens are in circulation.
APE’s purpose and function
APE is a governance token, allowing token owners to vote on proposals and protocol modifications, and as a rewards token for liquidity providers. Users who supply the exchange with liquidity are rewarded with a portion of the trading fees in the form of APE tokens.
APE as a governance token
As discussed, APE token owners can partake in the governance of DAO. Holders can also access features such as events, games, merchandise, and other services. Token owners can cast votes on motions that affect how the platform evolves, such as the addition of new features or adjustments to the token distribution. By doing this, the APE community is given a voice, and the platform can continue serving its users’ needs.
One can also use APE to make payments, as many merchants accept it as an ERC-20 token. Holders can also use it as NFT rewards.
APE as a staking token
Staking is a way of putting cryptos to work without actively trading them. Investors use staking to earn regular block rewards in proportion to their contribution. Staking helps the blockchain stay secure without it taking a toll on the environment.
APE functions within the ecosystem as a staking token. Holders of APE tokens can stake them for rewards like more APE tokens or other cryptos. This encourages users to keep their APE tokens, which helps the platform maintain stability and experience long-term growth.
The APE ecosystem
The ApeCoin ecosystem comprises the community of APE users and the various services that use the token. Yuga Labs is a well-known brand in NFTs and digital collectibles and participates in the ApeCoin DAO community. The Bored Ape Yacht Club (BAYC) is a collection of 10,000 digital collectibles that feature cartoon apes created using an algorithm.
APE provides various financial services, such as yield farming, staking, decentralized exchange (DEX) services, and liquidity provision. The ecosystem of APE offers a decentralized, community-driven platform for cryptocurrency asset trading and liquidity provision. The APE token, which allows token holders to vote on proposals and protocol changes, serves as the platform’s governance token.
The ApeCoin ecosystem would not exist without the APE community. The community comprises APE token owners, liquidity providers, developers, and other stakeholders. To keep the APE ecosystem decentralized and community-driven, the APE community is essential to its growth and governance.
The ApeCoin project’s research and development division is APE Labs. APE Labs is committed to creating fresh goods, solutions, and capabilities for the ApeCoin ecosystem. Additionally, it works with other initiatives and groups to advance the growth of the Web3 ecosystem.
APE’s unique features
APE has several unique features, such as high-yield staking, decentralized governance, community-driven development, and regular events and feedback channels. It aims to create a decentralized and community-driven ecosystem that empowers users and provides high staking rewards.
High yield staking
APE provides its token holders with a high-yield staking program. Users can stake APE tokens to earn rewards such as more APE tokens or other cryptos.
Through the APE DAO, APE crypto holders can vote on protocol decisions within the APE ecosystem. In this case, APE functions as a governance token. Proposals are supported by the APE DAO treasury and overseen by the APE Foundation, which is tasked with growing and developing the ecosystem rather than directing it.
APE’s development is community-driven, meaning the platform’s users have a big say in how it develops. The APE development team considers community inputs and puts proposals to vote.
ApeCoin is a digital token created in accordance with the Ethereum ERC-20 tokenization standard, with a hard-capped supply of one billion APE tokens.
APE token supply and distribution
APE, an ERC-20 token, has a fixed supply of 1 billion. At the time of launch on 17 March 2022, about 13.3% of tokens were in initial supply. There is no mechanism to mint further tokens. APE does not have a burning capacity either.
APE token price and market performance
As of 11 March, APE trades at $3.73. Its market cap stands at $1.38 billion. It is important to conduct thorough research before investing in any crypto, including APE crypto.
APE’s use cases
The APE ERC-20 token created on the Ethereum blockchain has various applications in the DeFi ecosystem. It can be used for yield farming, staking, and decentralized governance. You can trade it on crypto exchanges. This token serves as a crucial utility token within the larger DeFi ecosystem, benefiting investors and platform users.
Decentralized Finance (DeFi)
Decentralized finance is one of the main applications for APE crypto.
Staking and yield farming
Holders can use APE tokens to take part in high-yield staking programs. Users can stake APE tokens to earn rewards such as more APE tokens or other cryptos.
The APE team and advisors
ApeCoin was launched by ApeCoin DAO, a governing body comprising all APE token holders. The DAO considers proposals from the community, and token holders can vote on those ideas. Separately, the APE Foundation oversees the day-to-day functioning of the project. In other words, the foundation forms the legal backbone for ApeCoin DAO.
APE’s core team members
The ApeCoin DAO’s initial board had Reddit co-founder Alexis Ohanian, Amy Wu, the then head of FTX’s venture unit, Sound Ventures’ Maaria Bajwa, Yat Siu of Animoca Brands, and Horizen Labs’ Dean Steinbeck.
APE’s advisory board
ApeCoin DAO members vote and elect a new board every year.