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.
— jg_xyz (@jg_xyz_) September 22, 2023"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)
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.
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.