In the recent blog postings, we covered the basics of our ApeDAO and briefly presented our lightpAPEr. Now, it’s time to look into the future and highlight some of the most important next steps of ApeDAO.
However, we cannot explain the upcoming updates without referring to our NFT sale. So, let’s start with a short recap:
After its launch, our OG Apes NFT collection gained immense popularity in the IOTA ecosystem, mainly due to our transparent and honorable approach of running the project. As a result, the entire collection of 1,074 Apes sold out in less than 9 minutes at a fair mint cost!
Near immediately and continuously since the mint, prices of ApeDAO NFTs have consistently increased. Their limited supply makes it challenging for new people to join our community of DeFi degen apes! In addition, users refrain from buying NFTs because they fear selling an NFT and getting back the money invested is a challenge.
Two solutions for two problems
ApeDAO NFTs are illiquid
One of the main drawbacks of owning NFTs, as seen from the perspective of an investor, is that they are illiquid assets. This means you cannot easily convert them to cash. Normally, the owner would have to list an NFT on a marketplace and wait for a buyer. If the buyer does not come quickly, the seller may have to lower the asking price. This entire sales process can be time-consuming and if the owner requires cash immediately, they may face difficulties. This is why NFT ownership presents a challenge for investors.
Solution for this problem: Liquid Apes
By introducing the APEin token we are enabling Ape NFTs to become liquid assets. What does this mean? If you want to sell your Ape, you don’t have to wait for a buyer. You can simply convert your Ape into APEin tokens and immediately sell them on ShimmerSea DEX.
High Ape NFT prices prevent new members from joining
While the continuously increasing floor price of Apes is exciting (and proof that we are doing something right), it presents a challenge for new people looking to join our DAO, as the “entrance ticket” becomes more and more expensive. This prevents us from growing further. The primary focus of a DAO is to cater to its long-term holders and participants. Lowering the price of Apes and thereby diluting the voting power and investments of existing holders, is not a viable solution. So, what steps can we take to address this issue?
Solution for this problem: Ape Split
ApeDAO launches an additional Ape collection called Lil’ Apes. You can buy these NFTs only with the APEin token. Since APEin tokens can either be obtained by exchanging your OG Ape NFT or buying them on ShimmerSea (DEX on the Shimmer EVM network), it’s almost a perfect solution to our challenge. We are not diluting the voting power of OG NFT hodlers, while at the same time allowing for a cheaper entry into our community. Lil’ Apes will have their own fixed supply and voting power.
Soon Wukong III is really excited about the Lil’ Apes and cannot wait to welcome all the new members joining us in the near future!
Stay tuned for more! Our next article will explain the detailed mechanics of the Liquid Apes and the Ape Split.
