ApeSwap’s Core Team is committed to the long-term health of the protocol, the decentralization of our operations, and the continued growth of the DAO. To continue driving ApeSwap in this direction, we are proposing to use funds accumulated in the ApeSwap Treasury and revenue from various service offerings as described below.

The “Treasury Funds Usage” section is intended to carve out the maximum financing needed over the next six months. The “Protocol Revenue Utilization” section adjustments are intended to apply in perpetuity, or until another governance vote is passed to overwrite the terms in this proposal.

Treasury Funds Usage

ApeSwap is seeking community approval to utilize ApeSwap Treasury funds as follows over the subsequent six months once the proposal is passed. These would allow for any currency type to be used from the treasury. ApeSwap will use funds set aside for operational expenses in the “Protocol Revenue Utilization” section below, before using any of the carve outs below:

Marketing - Up to $750,000 Cover the ApeSwap Core Marketing Team’s expansions and marketing initiatives including, but not limited to tools, paid media, analytics, agencies, graphics, design, videos, influencers, sponsorships, and human resources.

Human Resources - Up to $500,000 Ensure the continuity of ApeSwap by providing compensation to DAO contributors for marketing, business development, technical development, or community work.

Grant & Growth Program - Up to $250,000 Incentivize non-Core Team contributions to ApeSwap’s technology stack as per ApeSwap’s upcoming Growth & Grant Program. See this Github repo for example bounties we’d like to pay with this carve out.

Smart Contract Audits - Up to $150,000 Audits of new Solidity code through reputable auditors to ensure the highest degree of security and best practices as ApeSwap continues to innovate and build the DAO.

Infrastructure - Up to $150,000 Technical, human, and other resources necessary to maintain high-integrity and real-time data for ApeSwap’s suite of features.

Notes

• The remainder of the treasury will be eligible for generating additional revenue for the ApeSwap DAO via lending, yield farming, or other decentralized finance mechanics, based on the analysis of the Treasury Multisig holders. All capital will only be placed in trusted and battle-tested protocols to ensure the security of the treasury.

Protocol Revenue Utilization

We are proposing to use revenue from ApeSwap’s various service offerings as follows:

BNB Chain DEX Revenue Breakdown

The BNB Chain DEX revenue would be utilized as follows:

Guaranteed 50% for BANANA Buyback and Burns

• We will buy back BANANA and burn it with 50% of BNB DEX revenue, guaranteed

Up to 10% for Contributor Incentives

• Earmark 10% of BNB DEX revenue to be utilized for incentivizing ApeSwap contributors. Including, but not limited to: Core Team Members, Administrators, third-party contributors, and contributing projects
• The distribution, selection, and process will be managed by multi-sig holders of the treasury address
• Unused funds from this 10% will be stored in the ApeSwap Treasury

Up to 10% for ApeSwap Operational Expenses

• Carve out for ApeSwap day-to-day operational expenses such as marketing, tech subscriptions, tools, human resources, design, community engagement, etc.
• Unused funds from this 10% will be stored in the ApeSwap Treasury

Up to 10% for DEX Optimization

• Engagements with world-class incentive distribution & tokenomics firms to build out custom machine learning models to maximize revenue for ApeSwap’s DEX
• Unused funds from this 10% will be stored in the ApeSwap Treasury

Minimum 20% stored in ApeSwap Treasury

• With the considerations above, this would leave a minimum of 20% of ApeSwap’s BNB DEX revenue to be stored in the ApeSwap Treasury for future use

Polygon DEX Revenue Breakdown

The Polygon DEX revenue would be utilized as follows:

Guaranteed 50% for BANANA Buyback and Burns

• We will buy back BANANA and burn it with 50% of Polygon DEX revenue, guaranteed

Up to 10% for Contributor Incentives

• Earmark 10% of Polygon DEX revenue to be utilized for incentivizing ApeSwap contributors. Including, but not limited to: Core Team Members, Administrators, third-party contributors, and contributing projects
• The distribution, selection, and process will be managed by multi-sig holders of the treasury address.
• Unused funds from this 10% will be stored in the ApeSwap Treasury

Up to 10% for ApeSwap Operational Expenses

• Carve out for ApeSwap day-to-day operational expenses such as marketing, tech subscriptions, tools, human resources, design, community engagement, etc.
• Unused funds from this 10% will be stored in the ApeSwap Treasury

Minimum 30% stored in ApeSwap Treasury

• With the considerations above, this would leave a minimum of 30% of ApeSwap’s Polygon DEX revenue to be stored in the ApeSwap Treasury for future use

Other Revenue Utilization

NFT Revenue

100% of revenue generated from any NFT initiatives (e.g., aftermarket sales, new sales, etc.) will be utilized for ApeSwap’s operational expenses.

Notes:

• This does not apply to the current 50/50 agreement that ApeSwap has with NFA auction proceeds and staking pools.
• ApeSwap does not have the intent to officially endorse or create any new NFT projects at this time, but if that became the case, it would fall under this revenue structure.

SS-IAO Revenue

95% of revenue generated from Self-Serve IAO launches will be used for ApeSwap’s operational expenses. 5% will be utilized as commission to compensate business development associates for arranging SS-IAOs.

Vault Fee Revenue

100% of fees generated from ApeSwap’s vaults will be utilized for ApeSwap’s operational expenses.

Other Revenue

Any other revenue generated from ApeSwap’s Marketing or Business Development activities will be utilized for ApeSwap’s operational expenses.

Burning Vaults Revenue Allocation

Historically, ApeSwap passed a governance proposal to utilize 10% of DEX revenue in burning vaults for long-term burn BANANA mechanics. Unfortunately, due to many protocols with yield farms for Ape LPs sunsetting, ApeSwap was forced to deprecate our burning vaults. This proposal would give ApeSwap permission to use the accumulated fees originally intended for burning vaults for operational expenses.

Notes

• ApeSwap currently has three treasuries: one on BNB Chain, one on Polygon, and one on Ethereum as per our public disclosure documentation.

• ApeSwap Multisig holders can be found in the documentation at this link.

• “Operational Expenses” in this proposal refers to any expenses incurred to run normal ApeSwap DAO operations and business activities. These expenses are required to efficiently run ApeSwap including but not limited to human resources, technical resources, software, audits, vendors and third party providers, marketing services, etc.

• Any operations or offerings exempted from this document were done so intentionally and imply that ApeSwap continues those as they presently exist.