Sunday, June 23, 2024

ApeCoin criticized for governance system.

ApeCoin is at the receiving end because of its governance system as its board member structure is not suitable for solving certain issues. ApeCoin is a token associated with the Bored Ape Yacht Club (BAYC) NFT series.

Cobie, a market analyst, highlighted that it’s weird to have only board members as people with a potentially adversarial motive to the rest of the DAO. He asked if ApeCoin board members were exclusively investors who were launch contributors. The analyst highlighted that some members would have over 33% of the allocation unlocked during the staking launch.

Cobie suggested that there may be potential adversarial incentives and that board members properly disclose interest amounts when suggesting proposals. The concern is that proposals could be made out in favor of these board members. He said if the board members have material amounts of vesting completed in six months, then they are acting on the board during a pretty important period for their personal interests.

Since its launch, ApeCoin has been subjected to ridicule. Analysts highlighted that the tokenomics of the project could leave room for venture capitalists to dominate. Another concern brought to the fore has been the compromise of the Bored Ape Yacht Club Discord.

Billy Markus, the creator of Dogecoin, had pointed out that NFT tokens like ApeCoin rally based on the token’s hype. He believes ApeCoin is hurting the NFT space. Markus said token communities are generally hyped toxic and desperate.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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