What is ApeCoin? How It Works? Complete Guides 2024

March 2022 marked the release of ApeCoin, the Bored Ape Yacht Club-affiliated cryptocurrency that promises to be the coin-of-choice for a new metaverse ecosystem being built out by Yuga Labs — the creators behind BAYC. The release of the coin, which came on the heels of Yuga Labs acquiring pioneering NFT collectible CryptoPunks, and was followed up by the announcement that Yuga Labs raised $450 million in venture capital funding, is a banner moment for the NFT space. doesn’t just have the potential to bring new people into crypto, via the events, gaming, and merch that will be accessible through the token, but it also represents one major way the NFT space is quickly evolving, beyond just the “profile picture projects” that have become synonymous with the $40 billion-plus market.

How Does ApeCoin Work?

(APE) functions within the Ape Ecosystem, which revolves around the Bored Ape Yacht Club (BAYC) collection of NFTs (non-fungible tokens) and its sister project, the Mutant Ape Yacht Club (MAYC). Here’s a breakdown of ApeCoin’s key functionalities:

Governance

• ApeCoin DAO: A key aspect of is its role within the DAO (Decentralized Autonomous Organization). APE token holders have voting rights within the DAO, allowing them to participate in governance decisions related to the Ape Ecosystem’s future. This could involve voting on how funds in the DAO treasury are allocated, what projects receive grants, and the overall direction of the Ape Ecosystem.

Utility Token

• Access and In-Game Currency: serves as a utility token within the Ape Ecosystem. It can be used to access exclusive features and in-game currencies within potential future games or metaverse experiences developed by Yuga Labs (creators of BAYC and MAYC) or other third-party developers building on top of the Ape Ecosystem.
• Marketplace Payments: might be used for transactions within the Ape ecosystem’s marketplace. This could involve buying and selling NFTs, merchandise, or other digital goods.

Investment Potential

• Growth of the Ape Ecosystem: The success and adoption of the Ape Ecosystem directly impacts the value of APE. If the Ape Ecosystem attracts a large user base and thrives as a platform for NFT-related experiences and utilities, the demand for APE to participate within this ecosystem could rise.

Limited Supply

• There’s a total supply of 1 billion APE tokens, with a capped maximum circulation of around 66% (around 660 million tokens). This limited supply creates scarcity, a principle where limited availability can influence value.

Current Stage

• It’s important to note that the Ape Ecosystem and the specific utilities of ApeCoin are still under development. While the potential applications mentioned above are promising, the actual use cases for APE are still evolving.

Overall, ApeCoin aims to be a utility and governance token within the Ape Ecosystem. Its role in the DAO grants holders a say in the ecosystem’s development, while its potential use cases for access, in-game currency, and marketplace payments within the Ape Ecosystem could drive demand for APE. However, the value of APE is also influenced by the success and adoption of the broader Ape Ecosystem, which is still evolving.

You can buy it on most major crypto exchanges

ApeCoin was originally distributed to owners of the Bored Ape Yacht Club and Mutant Ape Yacht Club via a claimable airdrop. But anyone with an account on Coinbase, or a number of other crypto exchanges can also buy the coin. (Buy ApeCoin here.) In the days after it launched on March 17, the price fluctuated wildly, swinging from as high nearly $40, to as low as $6.48. Regardless of the price swings, there’s a ton of interest in ApeCoin – it traded more than $2.3 billion in volume on Coinbase on March 24 alone, and was the fourth most mentioned cryptocurrency across Twitter and Reddit posts according to the social media monitoring app, LunarCrush.

Owning ApeCoin makes you part of a DAO

Anyone who buys ApeCoin is eligible to become a member of ApeCoin DAO, a decentralized organization that will govern how the DAO’s treasury is spent and vote on proposals about future projects related to the coin. Even though ApeCoin is affiliated with BAYC and Yuga Labs, technically, it’s controlled by ApeCoin DAO, and Yuga Labs claims that they have no ownership over DAO. In lieu of a centralized entity in control, there is a five member a “board” of top tier crypto investors that will oversee certain proposals related to ApeCoin DAO, and each member gets a six-month term, then ApeCoin DAO community members get to vote on who the future board will be. The initial board includes Reddit co-founder Alexis Ohanian, Amy Wu, head of FTX’s venture arm, and Yat Siu, co-founder of blockchain gaming company Animoca Brands.

how ApeCoin and the ApeCoin DAO work together

• Voting Rights: Owning APE tokens grants you voting rights within the ApeCoin DAO. This allows you to participate in key decisions that shape the future of the Ape Ecosystem. APE holders can vote on proposals related to:
  • Fund Allocation: How funds in the DAO treasury are spent. This could involve supporting grants for developers building on the Ape Ecosystem or funding new initiatives within the ecosystem.
  • Project Selection: Which projects receive grants or support from the ApeCoin DAO.
  • Ecosystem Direction: The overall direction of the Ape Ecosystem. APE holders can potentially influence how the ecosystem evolves and what features or functionalities are prioritized.
• DAO Membership: By owning APE, you become a member of the ApeCoin DAO. This grants you the ability to participate in discussions and proposals within the DAO’s governance forum. Here, APE holders can voice their opinions, collaborate with other members, and contribute to the decision-making process.
• Empowering the Community: The ApeCoin DAO structure aims to empower the Ape Ecosystem community. By granting APE holders voting rights, the DAO ensures that the community has a say in how the ecosystem develops and flourishes.

ApeCoin DAO

It’s important to remember that the ApeCoin DAO is still relatively new, and its governance mechanisms are evolving.

However, the concept of ApeCoin holders having a say in the Ape Ecosystem’s future through the DAO is a core aspect of the project.

Here are some additional points to consider:

• DAO Participation: While APE ownership grants membership, actively participating in discussions and voting on proposals within the DAO requires engagement from token holders.
• DAO Proposals: The success of the ApeCoin DAO depends on the quality of proposals submitted for community voting. A strong and engaged community is essential for effective DAO governance.

ApeCoin will be the currency of an entire metaverse economy

There aren’t too many details on the projects that will accept ApeCoin at the moment. But Yuga Labs has big ambitions for integrating ApeCoin into its future plans, saying on its website that holders will be able to use

to access exclusive merch, events, and services. Yuga Labs also says that will be the de facto currency for all new projects, including the coming play-to-earn aspect of Benji Bananas, a popular mobile game owned by Animoca Brands. In even bigger news, the token will play the same role in Otherside — Yuga Labs’ forthcoming metaverse game that will seemingly also be interoperable with other leading NFT collections like Mutant Ape Yacht Club, CryptoPunks, World of Women and Cool Cats. And beyond Yuga Labs, Time Magazine has said that it will soon accept ApeCoin for digital subscriptions, while rappers Snoop Dogg and Wiz Khalifa have released 8 songs together that can only be bought using ApeCoin.

Here’s how the tokenomics will work

There will only ever be 1 billion total $APE tokens. Here’s how they’ll be allocated: 

• 62% of the tokens will go to the ApeCoin DAO community. Of that, 15% goes to holders of BAYC and MAYC, with holders of BAYC eligible to claim 10,094 $APE for each NFT they own, and MAYC holders able to claim 2,042. The rest will be released as part of the DAO’s “ecosystem fund.”
• 16% of the tokens will go directly to Yuga Labs. Yuga Labs has also designated a portion of their allocation toward the primatologist Jane Goodall’s charity foundation, to help support IRL apes. 
• 14% of the tokens will go to “launch contributors,” which are defined as “the companies and people who helped make this project a reality,” but details are scant on exactly who these contributors are. 
• 8% of the tokens will go directly to the four founders of Yuga Labs and BAYC.

note

An important thing to note – not every ApeCoin is in circulation yet, a concept known as “locked” tokens. For Yuga Labs, launch contributors, and the founders of BAYC, their ApeCoin allocations won’t be “unlocked” for at least 12 months, meaning they won’t be able to sell in that span. After the 12 months, a certain allotment of tokens will become available to them on a monthly basis, a mechanism that is put in place to help avoid early token holders from “dumping” their large holdings all at once and tanking the price of a token.  

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