0xFE57…8066

PROPOSAL DESCRIPTION

This proposal is for the creation of a 15M $APE multi-sig “Community Voting Wallet” controlled by members of the DAO community.

The purpose is for the CVW to be the voting voice of the community without the influence of whale wallets which tend to override the wishes of the community whereby whale wallets vote against the community pulse.

This mechanic will require a temp check voting period during which the “pulse” of the voting community is based on a “1 wallet = 1 vote” linear voting Snapshot recipe. The results of this voting temp check then determines how the community CVW votes on proposals.

The period of the delegated wallet will last for a period of ONE YEAR (term) from the date that the wallet is used to vote in any AIP. The term can be renewed if a member puts up an AIP to extend it before the term ends. The newly created delegation cannot be used to vote in any subsequent vote concerning its own delegation (e.g., a vote to renew, a vote to end the delegation early, etc.).

Background Overview

• Despite the size of the ApeCoin community, a few whale (1M+ $APE) wallets control the outcome of most proposals up for vote.

• In fact, the majority of token holders don’t actually participate in the DAO voting system.

• The voting turnout continues to decline because, as in real-life, the general consensus among voters is that they can’t be bothered because they know that their vote isn’t likely to count.

• In the June 2024 period alone, the average voting turnout for all AIPs was 189 (!)

• The introduction of the Horizen wallet in the voting system last October has thus far created a polarizing effect whereby, at 4.3M $APE, it is now the 2nd largest voting wallet next to the Mocaverse (delegated by Animoca) at 6.3M $APE. And due to the turnout of the voters, these two wallets control the outcome for every vote in the DAO.

• The effects of whale voting wallets controlling the outcome of the DAO voting is a centralized paradigm that is outside the realms of decentralization, trust, and fairness.

• Putting caps on a voting wallet isn’t the answer as that will just lead to Sybil solutions whereby that same wallet can be split into amounts below the cap, then all vote anyway.

• The Ape Foundation, acting at the behest of the DAO, has an obligation to ensure that each member of the DAO has a voice, and that the voting system is fair and equitable to all.

Disclaimer: Due to the recent approval of AIP-436, all AIPs requesting an allocation denominated over US$250,000 will require a super majority approval of 69% of the total number of votes cast. The Foundation has already begun coordinating to develop our new Snapshot strategy to automate these new decision making guidelines, however, we will ensure compliance with this guideline manually in the interim.

This AIP falls above that threshold and will require 69% of votes to be approved.

PROPOSAL DESCRIPTION:

Bored Trading Co (BTC) concept evolved as a clear need to build collaboratively with over 400+ MBAs (Made By Apes) and numerous IP brands and projects. Coordinating with multiple IP brands, especially around major conferences, is arduous. Sending products, particularly internationally, is costly and time-consuming. High-profile events are often too expensive for a single IP brand to justify.

Recognizing the collective strength of the community with the launch of the MBA program, Jason co-founded BoredIn, a subcommunity supporting 200 MBAs founders building together. BoredIn focuses on spotlighting and aggregating IP brands and product media and research. Feedback from numerous IP brands & BoredIn highlighted the following major challenges:

1. Poor Visibility: Limited visibility and awareness outside Web3. While Web3 thrives on platforms like X, web2 consumers are on Facebook, Instagram, and TikTok where there has yet to be an incentivisation of customers, buyers, influencers to drive content.

2. Limited Resources: Small IP brands struggle with time and money, even for essential functions like shipping, where commercial rates are 35-60% below published rates.

3. Distribution Challenges: Scaling distribution for large order volumes or international shipments is challenging.

4. Payments Barriers: Accepting crypto for E-commerce is challenging to set up and expensive with gas fees. Although there are some solutions for Shopify for an online store, there are no known solutions for in real life point of sale (POS) solutions which include ApeCoin and ApeChain. We plan to work with NiftyKit and other tech partners to help develop.

Bored Trading Co’s Strategy

Bored Trading Co is dedicated to addressing key challenges in scaling IP products to the masses by creating a consumer flywheel. We believe in a collective approach to help the entire ecosystem overcome challenges. Our mission is to deliver value back to the ApeCoin and ApeChain ecosystems, fostering innovation and growth within the community. We aim to create IP products with ApeCoin holders, expanding the IP ecosystem. With Web3 IP products still in their infancy, many brands need support to scale, particularly in garnering visibility and driving smaller brands. Leveraging our logistics expertise, including @NFThoarder888’s experience as the Head of America’s Logistics at Bloomberg where he was responsible for thousands of events and conferences. In web3, we’ve supported numerous IP brands at major events (e.g. HK Apefest and Dubai Token) and collaborated on curated IP boxes (e.g. F*ck It Saturday and @WelcomeApes MBA box). Our journey includes expanding to communities like Pudgies, Mocaverse, 10KT, Azuki, and many more to empower and grow the entire ecosystem.

E-commerce presents a clear opportunity for ApeCoin to drive utility to the masses given current spending and growth projections. Bored Trading Co aims to harness the collective IP ecosystem to drive awareness, interest, and consideration from D2C consumers and B2B buyers. Bored Trading Co’s strategy includes a multi-pronged approach:

• Event Targeting: Participating in events with a booth to create direct engagement. Attend conventions and tradeshows to dive brand awareness for ApeCoin, ApeChain, and IP brands.

• Curated Box/Bag Solutions: Offering flexible, ApeCoin Powered curated products to customers and influencers to increase brand visibility. Incentivize collaboration between brands and ApeCoin to enhance the ApeCoin ecosystem development and culture. The bundling of several IP products together and centralization of fulfillment allows for higher conversion since the shipping cost does not create an imbalance to the customer value proposition. In web2 the higher dollar per transaction allows for promotions with free shopping or % off when you spend over a certain amount. The lower cost structure will provide custoers with more value at a lower price. We can curate multiple boxes like snack , gifting, or seasonal boxes.

• Community and Influencer Engagement: Driving content creation and engagement rewards to maintain sustained contact and recurrent touchpoints, adhering to the marketing “rule of seven.” Encourage users to hold 1 Ape, which gives them the opportunity to participate in events, receive corresponding tickets, ApeCoin Powered curated IP box, and discounts for online purchases.

• IP Engagement: Encourage brands to collaborate with ApeCoin, thereby fostering the growth and development of the ApeCoin ecosystem. Through collaboration with MBAs, incentivize MBAs and IP brands to join the Powered by ApeCoin ecosystem. Reduce the barrier entry for MBAs.

As we curate Powered by ApeCoin IP products, we will consider all previously approved AIPs and ApeCoin holders to include ApeCoin community IP in purchasing ApeCoin Powered curated boxes and bags. Additionally, the ApeCoin community will be rewarded through an ApeCain loyalty program for creating engaging content, such as unboxing videos, GIFs, and memes, to amplify product and “ApeCoin Powered” presence on Instagram and TikTok. ThankApe recently launched their BBAC Accelerator program which was celebrated by the community and we are looking to build off of this momentum and address the broader ecommerce flywheel out to web2 meeting consumers where they are outside of crypto Twitter. We will build our infrastructure to help the 30 winners of the BBAC while scaling to support the long tail of other businesses not rewarded. As ThankApe is a partner, we will work with them closely to further the impact and benefit to the ApeCoin ecosystem.

NFT NYC Case Study

We piloted the booth solution at NFT NYC during three events: NotNFTNYC, Clubhouse, and Bored Brunch, showcasing 13 IP products. The Bored Trading Co.’s booth drove conversation, inspiration, and even a couple of transactions. Rising tides lift all boats, and the AIP will allow us to scale this program with technology to accept $APE for onsite payments during events and support ApeChain in the future.

In addition, ApeCoin Powered curated boxes and bags with IP products will be deployed for smaller events and promotion to VIPs and influencers. Individuals and communities will be able to purchase curated boxes and bags directly from our e-commerce site. We will have a limited presales drop of the curated box(es) to drive revenue and accessibility. Ultimately, the goal is to drive leads from events back to the IP brands. Bored Trading Co. will help facilitate B2B leads with a 5% fee to support the financial sustainability of the project.

Bored Trading Co.’s holistic application of this strategy aims to garner attention and drive leads, ensuring a successful expansion from Web3 into the broader web2 e-commerce space. Together, Bored Trading Co. and its partners are set to break the glass ceiling and build a thriving IP ecosystem with ApeCoin & ApeChain, sparking an e-commerce consumer flywheel. The socialfi campaign and Powered by ApeCoin curated boxes will capture attention to expand the top of funnel, and the Bored Trading Co. booth at events will amplify brand awareness and leads.

Platforms and Technology