The first $APE payouts have been collected as of December 12, making it clear that ApeCoin staking is active. Staking, a long-standing aspect of the cryptocurrency business, has the potential to benefit token holders if done correctly significantly. However, if used improperly, it might have disastrous effects. Staking can seem like a difficult undertaking, regardless of whether you are an early Bored Ape owner who has taken advantage of every Yuga Labs airdrop or an NFT fan who has only recently bought their first $APE.

It’s more crucial than ever for Web3 communities to do their research before joining a bandwagon because there is so much false information floating around the metaverse. The same is true for ecosystem improvements like staking for apecoin. In order to dispel any potential misunderstandings and offer a general approach to staking ApeCoin, we’ve put together this concise yet comprehensive tutorial. It contains everything a member of the Bored Ape Yacht Club (BAYC) should know.

Describe ApeCoin

First, some background information on ApeCoin ($APE). ApeCoin was designed for existing independently of the Yuga empire, but Yuga and its NFT offering are inextricably linked as creator and creation. Although the moving elements of Yuga Labs, BAYC, and ApeCoin occasionally resemble each other, it’s crucial to distinguish between each organization.

ApeCoin, rather than the Yuga ecosystem, is fundamentally the native token for the BAYC universe. The ApeCoinDAO, which was established specifically to develop and introduce ApeCoin, came up with the idea for the “token for culture, gaming, and commerce used to support a decentralized community forming at the forefront of Web3”.

ApeCoin is the lifeblood of the BAYC ecosystem as a cryptocurrency designed for the benefit of those who live in the BAYC universe and those who own NFT. Additionally, users who are a part of the BAYC ecosystem can now stake their $APE and lock it up in a smart contract to earn rewards over time. These are only the fundamentals of ApeCoin; for more information, read the whole essay on the subject here on nft today.

Also, read – How To Make Bored Apes (BAYC) Unbored In The Metaverse

ApeCoin Staking – What is it?

Staking cryptocurrency has long been a crucial component of the blockchain ecosystem. It can be conceptualized as decentralized, high-yield savings account in its most basic form. Bank customers can store their money in a normal savings account and earn interest on their balance over time. Banks sometimes use members’ locked-up money during this time to make loans to other people, ensuring that the bank always has enough liquidity for usage by members.

Apart from the fact that one is crypto/blockchain-based and the other is not, one of the biggest differences between regular savings and token staking is that interest rates for staking are frequently substantially greater than those for bank accounts. Even though this is common knowledge in decentralized finance (DeFi), general Web3 enthusiasts may be surprised to learn that even the lowest level of ApeCoin stakes could earn approximately 3.83 percent in a single year. In comparison, banks only typically offer 0.19 percent interest on savings accounts.

ApeCoin staking methods

What is the process to stake ApeCoin, and how do your staked tokens start earning interest? Let’s start by clearing up the most crucial bit of information. Never rely on information from sources other than the official Yuga Labs, Bored Ape Yacht Club, or ApeCoin Twitter accounts. Likewise, only ever stake ApeCoin through ApeStake.io or through reputable centralized exchanges like Binance that have been authorized through official ApeCoin channels. Among these channels is Horizon Labs, a well-known blockchain infrastructure business that developed the ApeCoin staking mechanism.

Ape Staking Update: The day is finally here, $APE holders. https://t.co/sDan8JBxKa…is now LIVE!🎉
Pre-commitment period starts now.

1) Go to https://t.co/sDan8JBxKa
2) Connect your wallet
3) Stake your position

On December 12th, rewards start accruing. Get ready!

— Horizen Labs (@HorizenLabs) December 5, 2022

Owners of $APE had until December 5 to pre-deposit money in order for rewards to start accruing on December 12. Now that that time has passed, rewards for staked $APE are live and accruing, and all owners of ApeCoin or BAYC NFT are welcome to participate in staking. Unfortunately, residents of the United States, Canada, North Korea, and other countries are not able to use ApeStake owing to regulatory issues.

Ape Staking Update: Big thanks to the talented community devs for their helpful improvements. Bug Bounty AIP delayed us a bit, so we shortened the pre-deposit period by a week to keep our original 12/12 go-live. Alternate front-end sites going live. See card. pic.twitter.com/mgmP7X3SwQ

— Horizen Labs (@HorizenLabs) November 24, 2022

VPN stands for “virtual private network” for those who are unfamiliar. A VPN masks a user’s real IP address and builds a secure, encrypted tunnel to the internet in order to safeguard their online behavior and privacy. Users of these regions will need to stake through Binance, directly through the open-source smart contract, or by using a VPN until alternate staking channels have been developed with more centralized exchanges. Users in the U.S. and Canada have generally found that using a VPN to participate in staking on ApeStake.io is the most popular workaround.

Remember that this is not legal counsel.

However, staking is as simple as attaching a software wallet and confirming a transaction once a user gets access to ApeStake. Although the advantages of ApeCoin staking can be substantial, not everyone in the BAYC world will be able to enjoy them. Your rewards could differ significantly depending on how much $APE you possess and if you own a Bored Ape NFT (or a Kennel Club Dog or a Mutant Ape).

Rewards for ApeCoin staking

Users will have to choose which pool to distribute their holding when staking $APE. There are four main staking pools that may be accessed by holders of $APE tokens and BAYC (or similar) NFTs. 100 million $APE will be dispersed among staking pools as rewards within the first year of staking. This is how that is broken down:

• 30,000,000 APE tokens are in the $APE Staking Pool.
• Staking Pool for BAYC: 47,105,000 Tokens $APE
• 19,060,000 $APE Tokens are in the MAYC Staking Pool.
• 3,835,000 $APE Tokens are in the BAKC Staking Pool.

While immediately staking $APE is quite simple, people wishing to stake their BAYC or associated NFTs will first need to participate in a commitment process. A holder must own the BYAC NFT(s) at the time of staking, using $APE, and choose their partner pool if necessary to complete this process. It is an important factor that participates in the staking mechanism. You will need $APE, regardless of whether you stake an NFT or just raw ApeCoin.

It’s also crucial to remember that a BAYC NFT holder will forfeit all of their staked $APE if they sell their NFT while it’s committed.

Knowledge is power and should serve as the main lesson for individuals wishing to stake their tokens. Visit the official ApeCoin website here and ApeStake.io to start learning more about ApeCoin staking, including how to keep your assets secure in the process. Always double-check the information’s source as well as the websites and services you use.