ApeCoin community at a crossroads: Majority opposes $12.1M NFT purchase plan

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ApeCoin community at a crossroads: Majority opposes $12.1M NFT purchase plan

A proposal to allocate 11 million APE tokens, equivalent to approximately $12.1 million, for the purchase of an array of Non-Fungible Tokens (NFTs) is causing a rift within the ApeCoin community. As of now, the opposition leads in the voting, with the final decision set to be reached by September 21.

The divisive AIP-304 proposal

The initiative, dubbed AIP-304, was put forward by Huang Licheng, also known as “machibigbrother.eth“.

Over the last two months, the proposal has been a hot topic of discussion within the community. The plan aims to create a digital art movement collection consisting of NFTs from Bored Ape Yacht Club (BAYC), Mutants, TBD Doggies, CryptoPunks, and other art pieces.

As the voting deadline looms, opposition from the community stands at just over 65%.

High stakes, high rewards?

The acquired digital art would serve a specific purpose: rewarding users who lock their APE tokens for a five-year term to contribute to the governance of the ApeCoin DAO (Decentralized Autonomous Organization). This innovative approach to incentivizing long-term holding and governance participation has, however, been met with skepticism. 

ApeCoin struggling to find price support

It’s worth noting that Huang Licheng, the proposer of the contentious AIP-304, is himself a significant holder of ApeCoin, with about 4.24 million APE tokens valued at approximately $4.67 million. His sizable stake in Ape tokens adds another layer of complexity to the ongoing debate.

While the community grapples with this critical decision, ApeCoin’s price has been on a downward spiral. Currently trading at $1.09, the token has been in a bearish trend since April 14. The token lost nearly 17.15% of its value over the past week alone. Whether or not the controversial AIP-304 proposal is affecting this decline remains a subject of speculation.

Critical decision ahead

The ApeCoin community finds itself at a pivotal juncture. With a significant amount of the platform’s assets at stake, the decision could have a far-reaching impact on both the ApeCoin ecosystem and its token price. As the clock ticks down to the September 21 deadline, it remains to be seen which direction the ApeCoin DAO will ultimately choose to take.

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