ApeCoin staking is now officially live, and as of December 12, the first $APE rewards have been earned. But staking can seem like a hard thing to do, whether you bought Bored Ape early and got every Yuga Labs airdrop after that or you just bought your first $APE recently because you like NFTs.
Staking has been a part of the crypto industry for a long time, and if it’s done right, it could be a big win for people who own tokens. But if it is handled badly, it can lead to terrible things.
Because there is so much false information floating around the metaverse, it’s more important than ever for Web3 communities to do their research before jumping on a bandwagon. The same is true for ApeCoin staking and other ways to grow an ecosystem. So, to clear up any possible misunderstandings and give a one-size-fits-all approach to ApeCoin staking, we’ve put together a short but useful guide with everything a member of the Bored Ape Yacht Club (BAYC) should know.
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How is ApeCoin used?
First, some history about ApeCoin/$APE. It’s important to tell the difference between Yuga Labs, BAYC, and ApeCoin, even though their moving parts can sometimes look the same. ApeCoin is separate from Yuga. Because Yuga and its NFT offering are creator and creation.
ApeCoin is the BAYC universe’s native token, not Yuga’s. ApeCoinDAO was created to make and launch ApeCoin. It’s a “token for culture, gaming, and commerce used to empower a decentralised Web3 community.”
What is staking?
Staking crypto has been a key part of the blockchain ecosystem for a long time. Simply put, it’s a decentralised high-yield savings account.People can lock up their money in a general savings account and earn interest on it over time. During this time, banks often use their members’ locked-up savings to make loans to other people. This makes sure that the bank always has enough cash for its members to use.
Staking involves locking up tokens to prevent liquidity and earn interest. A big difference between traditional savings and token staking is that the interest rates for staking are often much higher than those for bank savings.
How to Put ApeCoin at Risk
So, how do you stake ApeCoin, and how do your staked tokens start earning interest? Let’s start by getting the most important fact out of the way. Only trust information from the official Twitter accounts for ApeCoin, Yuga Labs, and Bored Ape Yacht Club.
Only stake ApeCoin through ApeStake.io or confirmed centralised exchanges like Binance. Horizon Labs, which built ApeCoin’s staking system, has one of these channels.
$APE holders could pre-deposit money starting December 5 for December 12 rewards. All ApeCoin or BAYC NFT holders can now stake and earn $APE rewards.
Once in ApeStake, a user only needs to connect a software wallet and confirm a transaction to stake. But while the benefits of staking ApeCoin can be big, they are not the same for everyone in the BAYC universe. Your benefits could be very different depending on how much $APE you have and whether or not you own a Bored Ape NFT (or a Kennel Club Dog or a Mutant Ape).
ApeCoin staking Rewards
Users who want to stake $APE will have to choose which pool to put their holdings in. First, there are four main staking pools that anyone with BAYC (or related) NFTs or $APE tokens can use. 100 million $APE will be given to all staking pools in the first year.
Staking $APE directly isn’t too hard, but people who want to stake their BAYC or other related NFTs need to go through a committee process first. To finish this step, the holder must own the NFT(s) at the time of staking, commit the NFT(s) using $APE, and, if necessary, name their paired pool.
ApeCoin strongly suggests that users uncommit their NFTs before selling, saying that users should “think of a BAYC or MAYC [NFT] like a box that holds $APE. If you sell the box, the new owner will get the box and everything inside it.”
Overall, those who want to stake their tokens should remember that knowledge is power. Always check the information’s source and the websites and services you use three times.