CHANGING THE STAKES: ApeCoin Staking Comes To A Close, Marking The End Of An Inflationary Era And The Dawn Of A Deflationary Day!

Three years and 175 million $Ape later, ApeCoin staking has officially come to a close, marking the end of an inflationary era and the dawn of a new deflationary day!

On December 12th, 2022, Bored Apes, Mutant Apes, Bored Ape Kennel Club Dogs, and ApeCoin token holders were all invited to begin staking their $Ape in the ApeCoin DAO’s staking protocol.

Since then, a lot has changed around the swamp. The Biden administration’s SEC opened an investigation into ApeCoin and Yuga Labs, $Ape’s price tanked, ApeChain launched, the Trump administration’s SEC later dropped the case, the DAO closed, and $Ape holders grew to loathe ApeCoin staking every passing day, seeing it as the sources of sell pressure on the token.

“Staking emissions were really, really large,” ApeCoin’s Chief Strategy Officer Waabam said. “For the last 91 days, 54,955 $APE has been emitted daily from staking. Every single day. Over the 91 days before that, it was 68,681 $APE daily Over the last 3 years, 17.5% of the total supply of ApeCoin has been emitted by staking. An average of 159,817 $APE per day. The constant emissions undoubtedly contributed to the downward price movement of $APE.”

 

But Yuga Labs CEO Garga says that’s all in the past and that a new deflationary day for $Ape begins now, starting with burning all the $Ape spent on ApeChain gas fees.

 

“we’re moving APE to a usage-driven economy instead, and making the token deflationary,” Garga tweeted. I’ve said this before, but I think generalized L2’s without a killer app are a dead end. A chain is only as good as the thing on it that people actually want to use. For APE, that killer app is Otherside. We’re already seeing how Otherside can be a home for communities across crypto. And it’s the perfect canvas for us at Yuga to partner with some of the biggest companies and artists in the world, from Amazon to Daniel Arsham. Going forward, we’ll keep evolving Otherside into the best place for creators to launch their own game or social experience, with crypto quietly doing the heavy lifting in the background: permissionless ownership, creator royalties, and open economies. That means incentives should line up so ApeCoin wins if Otherside wins, and vice versa. To start, from now on all gas spent on transactions on ApeChain will be burned. So that activity on Otherside permanently reduces the supply of APE. This will be small to start, of course, and not as flashy as staking. But it’s the start of a real economic loop, where value comes from what people build and use. This is just the foundation. There’s a lot more coming to make Otherside more robust, scalable, wild and fun. Along with ways to make sure the economic loop between Otherside and APE is stronger than ever. More to share on all that soon."

 

 

Following Garga’s tweet, ApeCo CEO Cameron Kates announced that he and the team will be “burning all gas fees since ApeChain's launch,” which totals roughly 230,000 $Ape so far, according to Kates.

He added that they will also be “buying and burning an equal amount of $Ape to what’s burned via gas.”

 

The Gazette will continue to follow the end of ApeCoin staking and will keep you posted on the token’s next steps toward becoming deflationary. Stay tuned for updates!