Popular crypto influencer Cobie has said the board proposal for ApeCoin staking may not be the best way forward for the Bored Ape affiliated token.
In a blog after titled “the death of strike”, Cobie took a swipe at the concept as it is used today and questioned its purpose for ApeCoin.
Strike equal to Ponzi scheme?
According to him, the original meaning of staking was for users to give their tokens as collateral for validating blocks on a network. But now it just means you don’t sell your current coins and get rewarded with more coins.
He continued to say that most modern strike mechanisms serve no functional purpose for their ecosystem and only serve to encourage people not to sell.
This isn’t enough, though, as they’re “giving stocks away for nothing, except to reduce the liquidity of potential sellers,” before adding that he thinks it’s some sort of Ponzi scheme.
Cobie questions ApeCoin’s stakeout proposal
Cobie went on to question ApeCoin’s new staking proposal, which aims to reward holders who wager their tokens over the next three years with 17.5% of ApeCoin’s total supply.
According to the proposal, this step encourages
“Early NFT users and existing and potential ecosystem participants to engage in activities that benefit the APE ecosystem.”
Cobie questioned the rationale behind such a decision, assuming the ApeCoinDao’s treasury currently owns about $7 billion worth of the coin, saying the proposal will give away $2.6 billion for free to holders of the asset over the next three years.
In his words,
“It appears that the DAO is spending more than 1/3 of its remaining equity to bribe people not to sell, as the early contributing coins pass their early unlock phases.”
Rather than give away such an amount, he recommended ways the DAO could spend the money to meet existing user needs.
“Equity should be spent on acquiring and incubating utilities, building revenue streams and creating a sustainable DAO”
The proposal to deploy ApeCoin seems to come from Animoca Brands, one of the main partners of Yuga Labs.
ApeCoin’s price development in the last 24 hours
Since ApeCoin was launched about a month ago it has had quite a few market swings. According to data by CryptoSlatethe asset is currently trading at $14.26 after losing 3.7% of its value in the past 24 hours.
This is down from the $17.30 ATH hit yesterday following speculation that Yuga Labs would use it as the selling currency for its metaverse project, Otherside. This led to an increase in demand, which translated into a positive benefit for the currency.
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