ApeCoin Community Backs Sister DAO Proposal

The new proposal seeking to introduce a sister DAO and NFT treasury for the ApeCoin community has been approved. But will this be enough to spark a new wave of interest in the ApeCoin token?

Earlier today, members of the ApeCoin DAO ratified a proposal to establish an NFT Community Vault for the Web3 collective. The vault, which will operate as a subDAO seeks to advance the influence of ApeCoin, positioning it as the Web3 culture token.

Created by Yat Siu, the founder of the gaming company Animoca Brands, AIP-297 passed by a whisker. Approximately 46% of the voting power kicked against the idea, with only 54% of the voters rallying behind the proposal. Interestingly, the governance round saw participation from brands like The Sandbox and Elite Apes.

“We are strong supporters of building open ecosystems and have been acquiring NFTs […] from many creators,” said The Sandbox. However, Taiwanese-American musician and tech entrepreneur Machi Big Brother, who commanded the highest number of votes, asserted that was not going to bring enough value to ApeCoin DAO.

Another member of the community who was against the proposal wrote:

HELL NO. What’s wrong with you? If Animoca wants to do this they have the resources to spur this on themselves. Why waste $APE on this?

Moving forward, the sister DAO will receive an initial budget of 750,000 APE tokens (roughly $850,000) from the ApeCoin treasury to purchase non-fungible tokens (NFTs) representing “various cultures and also with a certain level of influence in web3.” Notably, 500,000 $APE will be used to purchase NFTs that align with ApeCoin’s visions while the remaining 250,000 $APE will be used as a “buffer for additional NFT purchases.”

As per the proposal, the sister DAO will be looking to acquire 10 units each of NFTs in the following collections – Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, Mocaverse, Cool Cats, World of Women, Pudgy Penguins, and KODA’s.

It is also worth mentioning that the sister DAO will operate separate from the main ApeCoin DAO and will be solely responsible for choosing a vault where the acquired NFTs will be stored. Plus, the requirement for joining the group is holding at least one $APE token.

For the uninitiated, ApeCoin is the governance token of the popular Yuga Labs, the company behind Bored Ape Yacht Club and CryptoPunks. Launched in March 2022, the token hit a peak value of $23.65 a month later but has been on a steady decline since then. As at press time, the token had dropped drastically to $1.13, amid a broader market decline.

Given that the initiative is still around NFTs, it is unclear if it will be enough to boost the declining price of $APE. For one, the broader NFT market is currently dealing with a lot of bearish sentiments. For instance, the current floor price of NFTs in the BAYC collection is around $40k. This is a sharp drop from its $429,000 value in April 2022.