What is ApeCoin (APE)?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
ApeCoin is a token issued in 2022 for the ecosystem around the Bored Ape Yacht Club NFT collection. It is governed not by a company but by the ApeCoin DAO, where holders vote on how treasury funds are spent. It was designed to be used inside the games and virtual worlds built by Yuga Labs.
Key points
- Issued as an ERC-20 token on Ethereum and initially distributed to NFT holders and others
- Spending decisions are made through proposals and votes in the ApeCoin DAO
- Intended as the in-world currency for Yuga Labs' Otherside project and related games
- A dedicated chain, ApeChain, was launched in 2024
Definition
An ERC-20 token created as the shared currency and governance token for the ecosystem that grew out of Bored Ape Yacht Club.
Bored Ape Yacht Club was an NFT collection that broke through in 2021, notable for granting holders commercial rights to their image. As the community grew, so did the argument that people without an NFT needed a way to participate, and ApeCoin was issued in March 2022.
The distribution allocated tokens to existing NFT holders alongside the development company, funds and charitable recipients. The issuing body is the ApeCoin DAO, where token holders propose and vote on how the treasury is spent, with an elected board handling day-to-day execution.
Its stated uses were payments inside Yuga Labs' Otherside virtual world and related games and merchandise. Some of this happened in practice — Otherside land NFTs were sold priced in ApeCoin. The scale of any in-world economy, however, depends on how many people take part.
In 2024 a dedicated network, ApeChain, launched with APE used to pay gas. NFT trading volumes across the market have swung widely since 2021, and usage of this token moves with them.
Watch out for
- · Most use cases are games and virtual worlds, so demand tracks how many people show up
- · DAO governance makes decisions public, but voting power scales with holdings, so large holders weigh heavily
- · Yuga Labs is a separate company; DAO decisions do not bind its development plans
Frequently asked questions
Do you need an NFT to use it?
Anyone can acquire and hold the token. Some DAO proposals and projects, however, require NFT ownership to take part.