Apes have become the face of NFTs as the biggest players, Bored Ape Yacht Club (BAYC) and Mutant Apes Yacht Club (MAYC), have broken records in trading volumes in the crypto space. As such, many projects have leveraged their success by incorporating newer technologies into these NFT collections.
One of which is by establishing tokenomics for staking rewards to incentivize the holders of BAYC, MAYC, and Bored Ape Kennel Club (BAKC), which then potentially increases the value of the NFTs - creating a positive economic flywheel. This project is known as ApeCoin staking, developed by Horizen Labs.
This article talks about the qualifications for staking rewards, the different staking pools, the tokenomics, and how it fits into the vision of ApeCoin DAO.
ApeCoin. That is the only requirement in order to start accruing rewards also in the form of ApeCoin. As long as a user holds this token in their Ethereum wallet, they can choose to stake them for rewards. While ApeCoin can easily be bought from tons of centralized exchanges like Binance, Huobi, OKX, Bybit, Kucoin, etc., it can also be purchased from decentralized exchanges like SushiSwap and UniSwap.
As ApeCoin is really the only requirement, this is the default staking pool with a token rewards allocation of 30,000,000 ApeCoin.
The BAYC Pool
Staking here requires more than just holding ApeCoin as it requires the user to be a BAYC holder. For each BAYC a user has, they can earn 10,094 ApeCoin. This pool has a total rewards allocation of 47,105,000 ApeCoin for Year 1, making this the most lucrative pool in ApeCoin staking.
The MAYC Pool
Similar to the previous pool, this also requires holding an NFT - specifically, an MAYC. Each MAYC held by a user entitles them to earn 2,042 ApeCoin. For Year 1, 19,060,000 ApeCoin are to be allocated as rewards for this pool.
The Paired Pool
As the name suggests, this pool requires a pair of NFTs to earn rewards. The pair must have at least 1 BAYC or MAYC and a BAKC. Holding a BAKC alone does not reap rewards. While there is no specific reward rate, the total rewards allocation for this pool is 3,835,000 ApeCoin for Year 1.
It is crucial to note that once an NFT is committed to a staking pool, the staked ApeCoin and the rewards are directly linked to the NFT. Hence, once the BAYC, MAYC, or BAKC is sold prior to withdrawing it and the rewards from the pool, the rights to the staked ApeCoin and the rights to the rewards are transferred to the new owner.
ApeCoin boasts a non-inflationary and non-deflationary mechanism, affixing a major percentage of supply to the members of its Decentralized Autonomous Organization (DAO). It has a hard cap of 1 billion tokens wherein 62% is for the ecosystem fund, 16% is for Yuga Labs and for charity, 14% is for launch contributors and 8% is for the founders.
ApeCoin in Metaverse
Besides being a staking and reward token, ApeCoin is poised to have a multitude of use cases primarily in metaverse games and in governance, wherein all ApeCoin holders may vote and have a say on proposals held by the DAO.
In the future, ApeCoin envisions to be the currency of a metaverse where products, games, and services coexist. There will be merchandise, transactions, events that may only be accessed or purchased by spending ApeCoin. Likewise, there will be certain pipelines that yield rewards in ApeCoin.
Currently, many play-to-earn developers are gravitating towards the Apecoin economy, such as Animoca Brands and Yuga Labs. It might just be a matter of time before the era of mass adoption where spending ApeCoin, and perhaps other ecosystem currencies, is the norm.