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ApeCoinDAO staking proposal explained, rewards available even without boring apes! Community vote results in a tug-of-war situation

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ApeCoinDAO staking proposal explained, rewards available even without boring apes! Community vote results in a tug-of-war situation

Since its launch, ApeCoin has been online for over a week, and the community is actively discussing the token's use cases and the future direction of the DAO. On the 24th, Yat Siu, a member of the ApeCoinDAO board and founder of Animoca Brands, personally explained the two most discussed governance proposals, AIP-4 and AIP-5, on Twitter, addressing the community's questions regarding the staking system and reward distribution.

ApeCoinDAO Governance Proposals

Currently, there are five governance proposals on the ApeCoinDAO forum. AIP-1 mainly discusses the structure and rules of the DAO; AIP-2 covers the core standards and processes of voting; AIP-3 addresses the ecosystem fund allocation for the first year of the DAO. The approval rates for these three proposals are all above 98%, making their passage seem inevitable.

On the other hand, for AIP-4 and AIP-5, the number of supporters and opponents is currently evenly matched, with a difference of less than 5%. These two proposals respectively discuss ApeCoin's staking function and the reward distribution of the staking pools, sparking the most discussions and doubts in the community. Next, let's take a look at the explanation of these proposals by Yat Siu, the founder of Animoca Brands.

Current Voting Status of AIP-4 and AIP-5

Note: AIP-4 and AIP-5 are both proposed by the Animoca team.

About the AIP-4 and AIP-5 Proposals

In the content of AIP-5, it mentions four independent staking pools, each with a specific amount of ApeCoin rewards. Three pools are designed exclusively for BAYC, MAYC, and BAKC holders. During the process, only ApeCoin needs to be staked, not NFT.

If bored ape ecosystem NFT holders wish to stake in the three pools mentioned above, they need to pair their NFT with their ApeCoin to gain access to the staking pools. If this sounds confusing, think of NFT as the key to a safe deposit box; only those with the key can access the rewards of these three staking pools.

Here are the initial ApeCoin reward allocations for the four staking pools:

  • ApeCoin Staking Pool: 30 million ApeCoin
  • BAYC Staking Pool: 47.105 million ApeCoin
  • MAYC Staking Pool: 19.06 million ApeCoin
  • BAKC Staking Pool: 3.835 million ApeCoin

Holding different types of NFTs means more rights to use the staking pools, optimizing staking combinations for higher rewards. However, apart from the ApeCoin staking pool, the other three pools have set limits.

Note: The following diagram shows the ApeCoin distribution process for the staking pools, intending to distribute 17.5% of the total circulating ApeCoin over three years, reducing the distribution amount each quarter.

Since NFTs do not require staking, holders still retain the right to sell their NFTs. However, if an NFT is sold, the new owner can claim the remaining ApeCoin in the staking pools. Therefore, it's best to unstake before listing NFTs for sale.

Additionally, the proposers, the Animoca team, will not vote on the proposals and will provide more detailed explanations for AIP-4 and AIP-5 after the vote is passed.

Founder Greg Solano's Remarks

Regarding these two proposals, Greg Solano, co-founder of Yuga Labs, also shared his views, noting that both proposals have their own advantages and disadvantages.

The advantage lies in staking ApeCoin in the NFT staking pools without binding NFTs, allowing owners to retain custody of their NFTs. The disadvantage is that the design of the staking limits is not yet clear. Based on the current description of AIP-5, it may not prevent a single NFT holder with a large amount of ApeCoin from receiving excessive staking rewards. An updated proposal from Animoca is needed to address this issue.