Apecoin DAO commits $12.5 million to the Digital Art Movement, and announces the launch of a novel governance token, $DAM.
The APE Foundation has greenlighted a pivotal investment in the Digital Art Movement (DAM), earmarking a hefty 11 million ApeCoins—a valuation of $12.5 million—for the venture. Orchestrated by community leader Machi Big Brother Jeffrey Huang, the proposition gained massive approval (64.92% votes) from ApeCoin’s governance community.
The transaction involves DAM’s significant outlay of 70% of the newly acquired ApeCoins to secure non-fungible tokens (NFTs) from renowned creators YugaLabs. The remaining 30% is slated for investment in other high-caliber initiatives within the digital art ecosystem.
“OFFICIAL: The ApeCoin DAO AIP-304 proposal has gone through with 64.92% of the votes in favor.”
Meaning…
11MM $APE ($12 MM) will likely be spent on Yuga NFTs.When the going gets tough…
The tough get going…(to sweep their own floors)🙄#web3 pic.twitter.com/fQwHQmFzHX
— jg_xyz (@jg_xyz_) September 22, 2023
Strategic implications and artistic aims
Two key outcomes are anticipated from this large-scale acquisition. First, it offers a chance to elevate the profile of NFTs in the global artistic landscape through the enrichment of exhibitions. Second, it opens doors for NFT assets donations to art-focused institutions, thereby serving as a catalyst for digital art proliferation on an international scale.
During the community voting process, the proposal amassed substantial backing, rallying 16 million $APE tokens in support. Machi Big Brother’s notable influence manifested in his hefty contribution of 4.1 million $APE votes. Still, it’s essential to acknowledge that there was dissent in the ranks, with a non-trivial 8.6 million $APE tokens cast in opposition.
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DAM is also set to launch its own governance token, dubbed $DAM. The token has been designed with an inherent fairness model, electing not to allocate any tokens to the development team at its outset. Initial disbursements of $DAM will incentivize long-term commitment by being directed at ApeCoin holders who agree to lock in their holdings for up to half a decade.
As for the $DAM distribution scheme, ApeCoin stakers will receive an initial 30% of the tokens over five years, using a frontloaded distribution model. This method will reduce the distribution rate biannually. The treasury will manage the residual 70% of tokens, pending specific allocation parameters, to be decided by a community vote.
Overall, this can prove to be a significant boost for ApeCoin. The token’s price has been constantly declining throughout the last quarter, and 96% of APE holders were at a loss last month. Since then, the token is further down by 25% – causing significant worries among its holders.
