ApeCoin: The Final Piece of the Web 3 Disney Puzzle

Source: BlockBeats

No company operating IP does not want to become Disney.

How much has Disney earned just from its created IP characters? According to statistics, in 2021, Disney alone accounted for half of the top 10 most profitable IPs globally, with 5 IPs (Winnie the Pooh, Mickey Mouse and Friends, Star Wars, Disney Princesses, Marvel Cinematic Universe) generating a total revenue of $311 billion.

Focusing on IP, Disney has established a closed-loop and comprehensive profit model that covers every aspect consumers can interact with: theme parks, film production, streaming, retail… Once these virtual characters created by people come into Disney's hands, they transform into high-speed money-making machines, generating a continuous stream of revenue at a pace envied by other companies.

Disney's birth and prosperity cannot be separated from the establishment of the modern copyright system, and the nickname "the strongest legal department on Earth" is enough to illustrate the importance of the judicial system in maintaining Disney's prosperity. As the era of Web3 arrives, in a permissionless, decentralized on-chain world, can the natives of the on-chain world replicate a decentralized Disney, or even surpass it, using new technologies and organizational forms such as NFTs, ERC20, and DAOs?

On March 17, the floor price of BAYC surpassed 100 ETH. This means that a "monkey avatar" is now priced at about $300,000. Some see speculation and absurdity in this, while others see the team's strong capabilities in IP operation. The BAYC team, valued at $5 billion, is still far from Disney's $250 billion market value, but this project, which is less than a year old, has already shown us the possibility of a Web3 version of Disney.

Mickey Mouse and Bored Apes

In 1923, Walt Disney sold his camera and bought a one-way ticket to Los Angeles with the unfinished film reel of "Alice in Cartoonland." That year, he and his brother Roy Disney founded the Disney Brothers Studio. Five years later, on a car ride to Hollywood, he created the cartoon character Mortimer, based on a mouse, which was later renamed Mickey at his wife's suggestion. Since then, this legendary cartoon mouse has influenced generations through Disney's storytelling.

Seneca, a Chinese illustrator living in New York, is one of the most ordinary individuals influenced by Disney. She has set aside a corner in her Manhattan apartment as her own "studio," casually placing brushes and paper there. In her cluttered studio, alongside a pile of watercolor paintings, is the game "Alice: Madness Returns," a story brought to the screen by Disney a hundred years ago, and the "rabbit hole" that Seneca fell into to start her illustration journey.

With her imaginative creativity, Seneca became the chief illustrator at Yuga Labs. In her fantastical world lives a group of bored apes, known as the Bored Ape Yacht Club. These apes have swept through the Web3 world, just as the whistling Mickey Mouse once captivated the childhood of everyone around the globe.

Parks and Universes

Every girl dreams of becoming a princess, and Disney provides them with a way to fulfill that dream—once you step in, you are a princess.

Mickey's initial attempt opened the doors to Disneyland. Over the next few decades, Donald Duck, Snow White, Dumbo, Iron Man, and many others joined this world. Stationery, daily necessities, clothing—everything you can encounter in life seems to have been stamped with Disney's designs. The characters from our memories continue to ignite fireworks in the parks to this day. They fiercely defend the ownership of each character, but these concepts are clearly not as popular in the Web3 world.

People hope for a more open BAYC, and the reality reflects that.

"BAYC membership costs the same for everyone." Before the sale, the BAYC team shouted the slogan of "fairness" on Twitter. Fair sales and granting owners complete commercial rights mean that the avatar is also a membership card to the club, and developing the community has become a passionate action for every member— as long as your avatar is an ape, other "apes" will come to pay attention to you.

At that time, people printed their own apes on clothes, phone cases, and even face masks. What BAYC offered them was not an unreachable childhood idol behind a screen, but "your neighbor" or "you."

These young people in Web3 are far crazier than imagined, with bathroom graffiti and offline gatherings. The power they have coalesced is no less than that of the century-old Mickey. The "apes" quickly established their own paradise, not just the officially airdropped BAKC but also the MAYC mutated from using potions.

These newly joined members alone cannot constitute the current "ape" universe. The opening of commercial copyrights has allowed more NFT projects to engage in secondary creations centered around the bored apes, and the "zoo" craze sweeping the entire NFT market has become the strongest driving force.

It constantly reminds us: you no longer need to admire a princess to enter the park; the place you are in is the park.

Star Wars and Punks

In 2012, Disney embarked on a path of expansion by acquiring Lucasfilm, founded by George Lucas, for $4.05 billion. This film company may be somewhat unfamiliar to most domestic readers, but you definitely know their IP: the globally renowned "Star Wars."

Due to cultural background differences, "Star Wars" may just be a "well-known IP" for Chinese audiences. However, for American viewers, it is a household "classic," accompanying generations over 35 years. The value of Star Wars has long transcended the realm of film; it is a milestone in the comprehensive operation of sci-fi IP, encompassing movies, toys, games, and derivatives.

Let’s slightly modify this story and tell it again in the world of NFTs—what comes to mind?

A classic and long-standing IP, a powerful IP operator, and a strong alliance between two well-known companies. Doesn’t this sound like BAYC and Crypto Punks?

On March 12, BAYC's parent company Yuga Labs announced the acquisition of the CryptoPunks and Meebits NFT series developed by Larva Labs. Yuga Labs plans to provide all commercial rights of these two NFT series to their holders. Yuga Labs will work to bring additional utility to the CryptoPunks and Meebits series, fully considering community opinions before deciding on the next steps.

The "antique" NFT CryptoPunks is undoubtedly well-known in the Web3 world, even breaking into the mainstream, with its influence spilling over into the Web2 world. Yuga Labs' acquisition of CryptoPunks is remarkably similar to Disney's acquisition of "Star Wars."

Recently, Larva Labs' various actions that disregarded the community have sparked controversy among netizens. However, the status of CryptoPunks remains unshakable—after all, CryptoPunks possesses historical value that no project can replace. Yuga Labs is undoubtedly trusted by the community.

A classic and historically significant IP, a team facing criticism, and a rising newcomer. Yuga Labs' acquisition of CryptoPunks is undoubtedly one of the best outcomes for all parties involved.

As the CEO of Lucasfilm mentioned regarding the acquisition of Star Wars, "One of my greatest joys over the past 35 years has been watching Star Wars pass from one generation to the next. Now it’s time for me to pass Star Wars on to a new generation of filmmakers." Now, CryptoPunks has also reached its moment of inheritance.

When an excellent IP meets a team skilled at "stirring things up," can Yuga's ability to operate IP empower CryptoPunks? Ideally, it might be like Disney after acquiring "Star Wars": "The best content mix integrated with Disney's unique and unparalleled creativity across multiple platforms, businesses, and markets, resulting in sustainable growth and driving immense long-term value."

Web2 and Web3

Thus, the story of the Disney world comes to a temporary close. However, Yuga Labs' ambitions are far from simple.

In October 2021, faced with the continuous influx of fresh blood, most older NFT projects began to feel restless. Airdropping NFTs seemed unable to address the urgent situation, and issuing tokens appeared to be the only lifeline. CoolCat, Pudgy Penguins, Groupies, DeadHeads, Animetas, and others began to replan their RoadMaps, with content primarily revolving around token issuance and integrating DeFi gameplay, some allowing staking for profits, while others opened P2E games.

Just as everyone was expecting BAYC to provide a satisfactory answer, they splashed cold water on everyone.

"When to issue tokens is a question we are often asked in the community. First, it's important to know that uploading an ERC-20 token is very simple and can be done in just a few minutes. However, building a compliant and responsible token that can develop sustainably is the most challenging part.

Not to mention how to use and govern the token; we need to bring benefits to BAYC community members while also expanding the economic system of BAYC to a broader perspective. This is what we need to do for our community members and the wider NFT community."

Three months later, the floor price of the BAYC series surpassed CryptoPunks, officially becoming the largest leader in the NFT market.

Five months later, just five days after Yuga Labs announced the acquisition of CryptoPunks and Meebits, ApeCoin was launched.

On March 17, BAYC's parent company Yuga Labs officially announced the launch of ApeCoin, aimed at empowering decentralized community building within the APE ecosystem.

ApeCoin features governance, unified spending, ecosystem access, and incentives, with a total supply of 1 billion tokens. Of this, 62% belongs to the ecosystem fund (150 million tokens will be airdropped to BAYC/MAYC NFT holders), 16% is held by Yuga Labs and its supported charities, 14% is allocated to project contributors, and 8% is reserved for the four co-founders of the project.

The airdrop will begin at 8:30 AM Eastern Time on March 17 (which is 8:30 PM Beijing Time today). The airdrop rules indicate that holders of only Bored Ape NFTs will receive 10,094 tokens; holders of only Mutant Apes will receive 2,042 tokens; those holding both Bored Apes and Kennel Club will receive 10,950 tokens; and those holding both Mutant Apes and Kennel Club will receive 2,898 tokens.

In addition, Yuga Labs also launched the Ape Foundation. According to the statement, the ownership of ApeCoin belongs to ApeCoin DAO, while the Ape Foundation is merely the "caretaker" of ApeCoin. Members of ApeCoin DAO can vote on the governance and use of the ecosystem fund, and holding ApeCoin is the only requirement to be a member of ApeCoin DAO.

At this point, Yuga Labs, which has been dedicated to building the community, has finally completed one of the most important pieces in the construction of Web3. Some say Yuga Labs has taken the safest path, choosing to become the Disney of the Web3 era; others say BAYC has opened up the current market's predicament and paved a new road. Regardless of the interpretation, we cannot deny that a vast world is about to emerge, one that will change existing rules and establish a new order.

Conclusion

In the grand era of space exploration, humanity first entered space and landed on the moon, allowing imagination to grow freely in the boundless cosmos, making space themes the main melody of artistic works. In the face of the vast universe, Lucas created a classic IP like "Star Wars," which has continued to grow for over forty years across screens, games, and derivatives.

A good IP can incubate its own culture, community, and even circles. Although the era of space exploration has come to an end, the influence of "Star Wars" has not diminished in the slightest.

As we find ourselves in a historical window where cryptographic technology profoundly changes human society, will the native IPs of the crypto world, like the former "Star Wars," give rise to their own cultural attributes?

With BAYC, Cryptophunks, and many other top-tier IPs in hand, Yuga Labs is at least racing down the path to becoming the Disney of Web3. How to effectively utilize these high-value IPs will test the wisdom of the Yuga team.