The Bored Ape Yacht Club has announced plans to release a token in the first quarter of 2022, working together with law firm Fenwick & West and blockchain technology company HorizenLabs.
BAYC holders were requesting a token
The official Twitter account of the Bored Ape Yacht Club has tweeted that there had been many questions about the release of a BAYC token. This is because there has been a lot of hype lately about NFT projects releasing their own token. One of the biggest projects that did this was Cyberkongz, which released the Banana Token.
For example, a Genesis Kong can earn about $10 BANANA per day. At the time of writing, the price of $BANANA is $81.51, which means that a Genesis Kong is able to earn $815 per day. These tokens can be used for breeding or to give your Cyber Kong a custom name. Since the owners of these NFTs can earn large sums of money without having to sell their NFTs, many holders of NFTs projects also want to have tokens for the projects they hold.
What do we know?
Yuga Labs explained that they know that launching an ERC-20 token is really easy and can be done within minutes, but they pointed out that it is difficult to do it in a legally compliant and sustainable way. They also mentioned that it takes time to “craft dope utility and governance benefit our club members.” Since the Bored Ape Yacht Club is currently considered one of the leading projects in the NFT space, they want to get the release of their token right. It is also confirmed that not only Bored Apes, but also Mutant Apes & the BAKC dogs will benefit from the token launch.
To create this token, the project is working with the law firm Fenwick & West. This law firm has been helping many blockchain projects with the legal aspects of their activities lately. One of the most recent examples in the NFT space was PixelVault, the company behind Punkscomics and Metaheros, which announced it would be represented by Fenwick & West. Other notable companies that this law firm represents include Coinbase and SuperRare DAO. The reason for working with a law firm is that there is a lot of regulatory uncertainty around governance and utility tokens, and the projects want to avoid creating something that could be considered a security.
Another partnership announced by Yuga Labs is HorizenLabs, a blockchain technology company that wants to help companies deploy a programmable blockchain with their own blockchain ecosystem Horizen, which uses zk-SNARKs for its scalability and privacy solutions. Some of Horizen’s partners include centralized lending platform Celsius, distributed ledger IOATA, and Hedera Hasgraph. Based on this partnership its possible that BAYC will develop its own blockchain-based on zk-SNARKs.