Ending ApeCoin Staking on NFTs

PROPOSAL NAME: Ending ApeCoin Staking on NFTs

TEAM DESCRIPTION:

CaptainTrippy - ApeCoin DAO Special Council

PROPOSAL DESCRIPTION:

This AIP proposes to terminate ApeCoin staking at the end of “Year 2 day 183” on NFTs from AIP-21 and the associated AIPs 4 and 5 which are referenced in AIP-21, all of which are regarding ApeCoin staking. This specifically includes an end to the staking for ApeCoin and the Bored Ape Yacht Club (BAYC) NFT ecosystem: Bored Ape Yacht Club, Mutant Ape Yacht Club (MAYC), and Bored Ape Kennel Club (BAKC). The primary intention is to prevent further dilution of ApeCoin and to reallocate reserved funds for staking back to the DAO treasury for more strategic and impactful purposes.

BENEFIT TO APECOIN ECOSYSTEM

  1. Reducing Dilution: By ending ApeCoin staking on NFTs from AIPs 4, 5, and 21, we prevent the continuous dilution of ApeCoin from staking at a time the funds could be better preserved and/or used for more meaningful ecosystem growth and development.
  2. Strategic Resource Allocation: The saved funds can be reinvested in more strategic initiatives that benefit the development and expansion of our ecosystem such as ApeChain.
  3. DAO Treasury Preservation: Protecting our treasury is critical to the long term success of our ecosystem. Preserving the remaining ApeCoin that is to be allocated over “year 2, days 184-365”, and “year 3” better positions us to make more strategic decisions in the future and strengthens the position of the DAO treasury.

DEFINITIONS:

  • DAO Treasury: A reserve of funds held by our decentralized autonomous organization, used for various community driven initiatives.

STEPS TO IMPLEMENT:

Work with necessary parties on remaining token allocations into contract and necessary steps for completion of staking at end of “Year 2 Day 183”.

OVERALL COST:

This AIP saves the DAO 34,125,000 ApeCoin

REPORTING EXPECTATIONS:

Update the community on staking end date.

299db0ea9ac19d7a6a7c6c71193121a92496339b

Fully support this. Apes should be for the culture, not the APY.

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Two questions:

  1. What promises or expectations were originally made to the Apes for staking ApeCoin? Does ending the staking program prematurely introduce any legal risk to the DAO if this passes?

  2. Assuming this were passed and executed, it would cause a mass influx of $APE liquidity. How do we think this impacts the value of $APE? <–or am I not thinking about this correctly?

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Bravo for putting this out there, Cap! I was at Horizen Labs when we were first tasked with building out the Ape Staking protocol, and despite rumors to the contrary, many of us were internally very against the staking protocol.

This is for one simple reason, it is not really a staking protocol, it is a token release and distribution mechanism. Staking implies that you are staking funds in order to provide some service in return, like providing security to a blockchain consensus, and then are rewarded for that service. In this case, it’s just a random release of token supply while adding no additional utility to ApeCoin and no additional demand for the token. Quite simply, this has been one of, if not the main, reason for the slow decrease in the price of ApeCoin over the past two years.

We are about to launch ApeChain, which will create dozens or hundreds of ways to use these ApeCoin’s to increase utility and bring in new members to the DAO. It would be folly not to push forward and pass this AIP and redirect the resources towards something that will increase utility and demand, like the forthcoming ApeChain funding programs.

For all community members hoping for a long term, healthy DAO Treasury and an epic launch of ApeChain, support Trippy with this AIP!

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  1. I don’t know of any promises made beyond what was proposed as an AIP for this staking mechanism back in 2022, which, I believe, the DAO has the ability to amend. I do not know of any legal risks but will keep this in mind.

  2. I am not going to publicly speculate this aspect of it, but I will say, with ApeChain launch around the corner, there should be no shortage of use cases for $ape in the very near future.

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Fully support this AIP and glad to see this kind of cleanup taking place with you Captain!

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I would support. We should be building incremental value for APE ecosystem users and potential users. We could be solving real problems that exist for users while making strong commitments to what crypto is all about in the first place.

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