ApeCoin community to buy top NFTs through new DAO
The ApeCoin (APE) community is set to establish a decentralized autonomous organization (DAO) for the acquisition of blue chip non-fungible tokens (NFTs).
ApeCoin improvement proposal (AIP) 297 was accepted through a community vote on Sept. 21. This governance proposal grants access to 750,000 APE tokens from the ApeCoin treasury to a new purpose-built DAO for the acquisition of selected NFTs.
ApeCoin (APE) unveils new DAO
AIP-297, championed by Animoca Brands co-founder Yat Siu, won with just under 54% of votes in favor. The NFTs to be acquired by the new DAO will be managed by the sister DAO members through democratic voting processes.
APE holders will have the opportunity to harness the intellectual property (IP) of these NFTs, potentially receiving grants in APE tokens. APE will serve as the catalyst for every stage, from the initial NFT acquisition to the development of innovative products leveraging these NFT IPs.
While closely associated with the ApeCoin ecosystem, the sister DAO will operate autonomously. This independence is meant to ensure that its decisions remain free from undue influence.
Despite its autonomy, the sister DAO will remain tethered to ApeCoin’s core principles, with APE holders exercising governance rights. This arrangement attempts to enforce a cohesive approach and align the interests of both entities.
Reviving the NFT community
The decision to establish a sister DAO stems from the challenging times faced by the global NFT market. According to DappRadar, monthly NFT trading volumes have plummeted by 70%, while sales counts have dipped by 45% since March.
Furthermore, many NFT collections within the Yuga Labs ecosystem have witnessed substantial drops in value, with APE itself falling by 95% from its all-time high reported in April 2022.
ApeCoin DAO made a commitment by investing $12.5 million (11 million APE) in the Digital Art Movement (DAM) with its own DAM governance token. This strategic move, orchestrated by community leader Machi Big Brother Jeffrey Huang, received approval from ApeCoin’s governance community, with just under 65% of votes in favor.
ApeCoin weathering the storm
In June, APE faced a tumultuous decline in value that was attributed to unsettling revelations regarding the salaries of the DAO’s leadership. Despite its association with the Bored Ape Yacht Club (BAYC) ecosystem, ApeCoin has grappled with challenging market conditions.
Notably, the turmoil appeared to originate internally, stemming from issues within the ApeCoin DAO’s leadership. The release of an organizational chart detailing leadership remuneration by Vulkan, the DAO’s secretary, caused ripples of controversy in the cryptocurrency community.
The current price of ApeCoin stands at $1.12, following a 3.25% decrease over the last seven days. With a circulating supply of over 368 million APE, ApeCoin has a market capitalization of just under $415 million. The token is crrently down by over 95% from its all-time high of $23.65 in April 2022.
