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BAYC’s success turns into an ecosystem

Non-fungible tokens (NFT) continue to make waves in mainstream media, with projects like Bored Ape Yacht Club no longer being a relevant example of the space’s potential. Some of the biggest names in Hollywood are proud owners of Bored Ape NFT avatars, which has undoubtedly increased interest and prices for Bored Ape NFTs.

The success of theBored Ape Yacht Club(BAYC) NFT Collection sparked the creation of an NFT ecosystem powered by its proprietary technology ApeCoin Token that has seen significant gains over the past few weeks.

Before we dive into the ApeCoin-powered universe that comes to fruition, it’s worth reflecting again on what Bored Ape Yacht Club is and how the Ethereum-based NFT collection exploded in popularity.

Dawn of the Apes

BAYC is the brainchild of Yuga Laboratoriesa Web3 marketing company that dreamed up an exclusive NFT collection of 10,000 programmatically generated Bored Ape digital collectibles.

The results were pretty incredible, with so many different combinations out of the 170 traits that could be thrown into the mix, resulting in a wide range of Bored Ape avatars.

The “Bored Ape Yacht Club” launched in April 2021 with a pre-sale of 10,000 digitally verifiable Bored Ape NFT avatars priced at 0.08 Ether (ETH) each worth around $190 at the time. All 10,000 NFTs were sold within a week, so newbies had to buy Bored Apes from NFT platforms like OpenSea.

The NFTs also serve as a membership card for the BAYC ecosystem, granting access to member-only benefits, which we will detail below. Needless to say, it was a hit, with Hollywood A-listers to the NBA’s best shelling out big bucks to own a BAYC NFT.

When well-known celebrities like Justin Bieber, Eminem, Paris Hilton, Snoop Dogg, and Post Malone acquired their own Bored Ape avatars, the prices of NFTs skyrocketed. Currently the cheapest Bored Ape listed on OpenSea costs around 85 Wrapped Ether (wETH) or $250,000. BAYC’s success spilled over into conventional markets – with the renowned auction house Sotheby’s Sale of a collection of BAYC NFTs for $24.39 million in September last year.

After successfully launching BAYC and selling all 10,000 NFTs, Yuga Labs formed the Mutant Ape Yacht Club (MAYC) and the Bored Ape Kennel Club.

BAYC-NFT owners were given “Mutant Sers” from the air that allowed them to mutate their Bored Apes into Mutant Apes NFTs, essentially allowing 20,000 Mutant Apes to be imprinted in the process. BAYC owners could also sell their serums in the Bored Ape Chemistry Club – the official marketplace for the NFT mutagenic serums.

Yuga Labs also gave BAYC and MAYC owners a week to claim a unique Shiba Inu-inspired dog NFT in June 2021 with the launch of the Kennel Club. Each Kennel Club NFT was randomly generated from 170 different traits. Owners were able to sell their Kennel Club NFTs with 2.5% of every sale on OpenSea being donated to real world animal shelters.

ApeCoin

As BAYC quickly grew in prominence and transformed into the exclusive membership ecosystem it is today, Yuga Labs turned its attention to it Create a decentralized autonomous organization (DAO) that would serve as the backbone for the burgeoning community.

The Ape Foundation acts as the base layer for the ApeCoin DAO, which is responsible for day-to-day administration and project management within the ecosystem. An ecosystem fund pays the expenses of the Ape Foundation as directed by the DAO and acts as infrastructure through which ApeCoin holders can participate in governance processes.

ApeCoin (APE) is the ERC-20 token used for governance and transactions within the Ape ecosystem. Holders can participate in the ApeCoin DAO, transact with other participants, and gain access to exclusive ecosystem services, gaming events, and items.

Yuga Labs has capped the supply of ApeCoin to 1 billion tokens minted at once, following a roadmap of gradual unlocks over a 48-month window. 150 million tokens were airdropped to BAYC and MAYC holders at launch, while a total of 470 million will be allocated to the DAO’s treasury and general ecosystem resources. 117.5 million were originally unlocked while 7,343,750 APE are unlocked every month for four years.

Yuga Labs has received 150 million tokens that have a 12-month lock-up period before unlocking 4.1 million tokens every month for three years. 6% of their total holdings are also donated to the Jane Goodall Legacy Foundationfounded by revered primatologist and conservationist Jane Goodall.

Another 140 million tokens have been allocated to launch contributors with different token mining schedules, while the four founders of Yuga Labs and BAYC will share 80 million tokens. These have a blocking period of 12 months, after which 2.2 million ApeCoin will be activated monthly for 36 months.

ApeDrop

the ApeCoin token airdrop took place on 17th Aprilwith different amounts allotted to BAYC and MAYC holders, with a bonus amount also for Kennel Club members.

Users who only owned a BAYC NFT were entitled to 10,094 APE, while Mutant Ape holders received 2,042 tokens. BAYC holders with Kennel Club companions received 10,950 APE from the air, while MAYC holders with a Kennel Club NFT received 2,898 APE tokens.

The price of APE was priced at $39.40 per token at its launch before finding a bottom of $6 per token on the first day of trading. ApeCoin’s price surged to $17.75 the day after its launch, before staging a gradual decline over the next few days. ApeCoin has been in a steady uptrend towards the end of March, hovering between $13 and $14.

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While ApeCoin is still in its infancy, the undeniable triumph of BAYC and the broader ecosystem has seen interest in APE tokens soar post-launch. Five days after the release of APE, Yuga Labs announced that this was the case completed a $450 million fundraising roundwhich valued the company at $4 billion.

The investment is one of the largest ever made in an NFT-focused company and suggests companies like venture capital firm Andreessen Horowitz, which led the funding round, have recognized the success and potential for continued growth.

Yuga Labs too acquired the intellectual property rights on Larva Labs’ highly successful NFT collections “CryptoPunks” and “Meebits” in March, as the company looks to expand its ecosystem and integrate interoperability between different projects.

With all of these factors playing into the spotlight on the Bored Ape ecosystem, interest in ApeCoin and the various NFT projects under the Yuga Labs umbrella will likely continue into 2022.