The ApeCoin (APE) DAO behind the token approved three proposals to improve the project, aimed at changing the governance structure and integrating the NFT staking mechanism from the Bored Ape Yacht Club (BAYC) ecosystem.
Voting has now closed on a set of three AIPs, all of which have passed: https://t.co/VQEtMwsh98
This includes proposals on restructuring the ApeCoin forum (AIP-7) as well as staking (AIPs-21&22).
— ApeCoin (@apecoin) May 5, 2022
AIP-7 envisions changing the structure of Discourse — the forum where DAO members propose and discuss proposals. The authors noted that the site is currently not suited for discussions not related to the AIP approval process.
«This forum is structured in such a way that it is entirely oriented toward the AIP process and is not suitable for other discussions. This prevents it from becoming a lively place to discuss topics related to the AIP, to choose workstreams that might be inspired by the DAO’s work, and for the overall development of the community and fraternity», the proposal states.
AIP-21 envisions integrating the ApeCoin staking mechanism with the BAYC NFT ecosystem. Token holders will be able to contribute assets to pre-created liquidity pools and receive rewards in APE.
NFT holders will be able to sell them without withdrawing from the staking pool. The stake will be tied to a specific token, not an address. This means the new owner will also be able to claim the rewards.
The authors estimate the cost of integrating AIP-21 at $300,000 to $500,000, with a 12–16 week timeline.
Under AIP-22, in the three years after activation of the proposals, the DAO will allocate 17.5% of the total APE supply to NFT holders who stake assets. The staking period will be 12 months.
These two proposals build on the community-rejected AIP-5, authored by Animoca Brands. The latter was criticised by influencer Cobie. In his words, such a staking mechanism does not benefit the protocol.
«Rather than earning rewards for contributing to the security of the blockchain by locking up assets, modern “staking” appears to mean: “We’ll give you more coins as a reward if you do not sell the tokens you own.” […] These modern staking mechanisms serve no real function; they do nothing in practical or technical terms», Cobie wrote.
Following the approvals, some members of the community voiced a similar view. One DAO member noted that developing a Layer 2 solution for the BAYC ecosystem is more important than implementing the staking mechanism.
Building a BAYC L2 scaling protocol is more important than staking.
— ap3father.eth (@ap3father) May 4, 2022
The developer going by the handle 0xBender emphasised that the proposals were approved despite a “recent call” to create a separate network where NFT and ApeCoin could be used for “real staking”.
APE dao staking proposal passed despite the recent call for a new “ape chain” where those coins would be better served for actual staking rather than as “gifts” to current bayc, mayc, and bayc holders
idk if the dao can execute a true ape chain if these are the decisions made
— bender (@0xBender) May 5, 2022
Against the backdrop of the AIP approvals, the APE price rose about 14%, according to CoinGecko. At the time of writing the asset traded near $16.40.
In April 2022, the BAYC NFT reached an all-time high above $430,000.
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