Ape DAO is currently voting on liquidating all its assets. If the vote passes, 81 Bored apes and mutants could go on sale! The DAO also holds CryptoPunk, Chromic Squiggles, CyberKongz, and several other blue-chip NFTs. Currently, a whopping 86.5% of the DAO members have voted to liquidate the assets.
But, what is Ape DAO?
Ape DAO explained
Ape DAO is an NFT Decentralized Autonomous Organization started by NFT collector Kylo.eth. Basically, they fractionalised several NFTs into 1,000,000 APED tokens in June 2021. The APED tokens, which sold out in just four days, also represent voting rights in the DAO.
“Since August, BAYC has gone from a 20E floor to a now 100E floor. A 5x increase in price,” wrote Twitter user Montana Wong. “At the same time, the price of $APED has dropped from the fundraising valuation of $10 to $8.”
Naturally, several APED holders were upset about the price difference, Wong claimed. To make matters worse, the speed of DAO development failed to meet the token holders’ expectations. Then, last night, a community member proposed to liquidate Ape DAO’s assets and distribute the ETH proceeds to each token holder. The proposal is currently active.
However, a majority vote alone may not be enough to liquidate the assets. The DAO’s treasury is locked by a multi-sig wallet with four signers. In other words, all four signers have to agree to proceed with the liquidation. So far, while one of the signers has voted towards liquidation, the others are yet to cast their vote.
“Seeing how ApeDAO navigates through this decision will be a learning lesson and great case study of decentralized coordination of millions of dollars between strangers, with conflicting interests,” Wong added.