$Ape holders Debate The DAO's Staking Proposals. Animoca Brands Yat Siu Suggest An Amendment:
As a majority of $Ape holders cast their votes against ApeCoin DAO’s two staking proposals, Animoca Brand’s Chairman Yat Siu shares his thoughts on AIP-4 and AIP-5 and proposes a “staking amendment proposal.”
As the Bored Ape Gazette previously reported, the first ever voting window for ApeCoin DAO opened two days ago and the two staking proposals are receiving a lot of pushback from the community.
At the time of this article’s publication, 67% of $Ape holders have voted against AIP-4 and 59.8% have voted against AIP-5.
These two proposals were put forth by Animoca Brands. Animoca Brands Chairman, Yat Siu, also serves as a Board Member of the Ape Foundation. In the two proposals, Siu and Animoca Brands lay out the staking process and staking pool allocations.
In AIP-4, Animoca explains that the “first step to ApeCoin becoming the preferred token of web3, early NFT adopters and existing and potential ecosystem participants should be incentivized.”
In order to incentives participation, Animoca is proposing the creation of four distinct staking reward pools. One for Bored Apes, one for Mutant Apes, one for BAKC dogs and one for $Ape coin.
Unlike traditional staking where holders of an NFT would have to stake their asset, Animoca Brands proposes people stake $ape coin instead.
In AIP-5, Animoca Brands lays out the ApeCoin token allocations for the four staking pools and the staking pool periods.
Many $Ape holders have said that the two staking proposals lack of clarity on important points such as how much $Ape can be staked per BAYC or MAYC held.
BAYC member and vocal critic of AIP-4 and AIP-5 Ryan RDM41.eth told the Bored Ape Gazette that he thinks the community needs time to process these proposals in order to get them right.
“In general, I think there is a feeling of the community needing more time to digest these proposals, discuss long term pro/cons, & spend the up-front necessary resources to get this done right and not necessarily care about getting this done fast,” RDM41 said.
Following the pushback from $Ape holders, Animoca Brands Chairman Yat Siu wrote a lengthy Medium piece to help ease $Ape holders concerns regarding AIP-4 and AIP-5.
“I would like to highlight a proposed amendment to the staking mechanism, which I will be referring to as the Staking Amendment Proposal. Provided that AIPs 1, 2, 4, and 5 pass, the Staking Amendment Proposal will propose that the quantity of ApeCoin staked is capped per NFT rather than per wallet for holders of BAYC ecosystem NFTs,” Siu wrote. “This allows for holders of multiple BAYC ecosystem NFTs to stake more ApeCoin, which I believe will benefit the APE ecosystem and community.”
Coming up with a number of $Ape that can be staked in relation to each BAYC and MAYC is a key point for many regarding the staking proposals. BAYC Co-Founder Gargamel highlighted this fact yesterday in a blog post.
“The main source of confusion and concern I’ve seen from DAO members is about whether owning just one NFT is enough to access a corresponding staking pool to an unlimited degree,” Gargamel wrote. “For example: Could a whale with a huge amount of APE and just 1 NFT still skew the staking pool that is allocated for that NFT collection? Under the current wording of AIP-5, the answer appears to be yes. I think the solution here is to cap the amount of ApeCoin that can be associated with any 1 specific NFT. If AIP-5 passes in its current state, this would require an addendum to be passed. It sounds like Animoca is already planning on submitting an addendum like this, and personally I would support it.”
While Siu did not specify the number of $Ape that can be staked in relation to a BAYC or MAYC NFT, the Animoca Brands Chairman explained that there will be a capped amount.
“It would mean that if you hold a single BAYC NFT and ApeCoin, you can access Pool 2, Siu wrote. “The amount of ApeCoin that you can stake in this pool would be capped at a quantity to be decided during Discourse feedback. If you own two BAYC NFTs, the amount of ApeCoin that you can stake in Pool 2 would be double that of the cap for one NFT. There would be no incentive for splitting up BAYC NFTs to different wallets, and no way for a user with a huge amount of ApeCoin but only 1 BAYC NFT to have outsized weight in the pool.”
Following Siu’s post, BAYC members took to the comment section. Many apes were pleased to hear that there will be a cap. However, many apes believe that setting a max ApeCoin cap per paired NFT is critical before they can vote yes on AIP-4 and AIP-5.
“Yeah I think the airdrop amount per NFT hold is a reasonable base, BAYC member Yankov.eth tweeted. “I'd be ok with anything between half and double of that. But it has to be written stoneclad into the AIP or I'm not voting for it. "Vote for this, we'll fix it later, we promise" is not enough.”
BAYC member Dilly Dilly echoed Yankov’s views on the cap and said staking needs to not hurt ape holders. “Same even if it was 15k $ape cap per ape to reward buyers, I'd be fine, Dilly tweeted. “As long as the number isn't outrageous and is spread across ownership of multiple apes rather than all-for-one, I'm content. I do believe $ape buying should be rewarded, but not at the expense of apes.”
While there is still a lot of discussion and debate to be had regarding the staking mechanics, every $Ape holder can agree that this level of discourse is encouraging for the future of the DAO.
“It is incredible to see how engaged everyone is and that makes me very bullish about the future of @apecoin, Siu tweeted. “I am honored to be part of history in the making, we are all learning, experimenting and being educated in the process.
BAYC member RDM41 shared Siu’s opinion on the discourse. “Wild to think about how engaged and active this community is, he said. “We could literally buy an island and start our own country & it would thrive!”