AIP-395: .APE - Launching the Real .APE Top-Level Domain on the Internet

ABSTRACT

ICANN (Internet Corporation for Assigned Names and Numbers), the world’s authority on IP addresses and domain names, has permissioned the second-ever instance in the history of the Internet to apply for new top-level domains (TLDs). The imminent reopening for a limited duration and potential cap on applications adds a layer of scarcity and urgency to this opportunity.

This is a proposal to create the .APE top-level domain (TLD) as a real-world asset (RWA) during the upcoming ICANN application round, which we anticipate will open as soon as 2025. The application takes approximately one (1) year to prepare and is led by D3, a next-generation identity company focused on bridging the gap between traditional Internet infrastructure and Web3.

The .APE TLD has the potential to create a lucrative, perpetual source of revenue for ApeCoin DAO, enabling growth of the community through new .APE domains, and cement ApeCoin (and $APE) as a major real-world asset with interoperability and utility at its core. D3 plans to offer a patent-pending tokenized *APE (e.g. SAM *APE) as an immediate Web3 identifier for users, while in parallel submitting the ICANN application for the real .APE TLD to enable future interoperability and native resolution seamlessly across Web2 and Web3. ApeCoin DAO will receive 50% of all gross revenues generated from the *APE name tokens and the .APE Top-Level Domain

It is not possible for any entity or individual to “own” a TLD. ICANN contractually grants the rights to exclusively operate and monetize each TLD that automatically renews every 10 years. This is true of every ICANN-accredited gTLD, including .com and .xyz. In order for the ApeCoin DAO to take advantage of the benefits the D3 team offers as an existing ICANN-accredited registry operator (e.g. expedited application and minimal diligence on the DAO and the Foundation), D3 must be the TLD applicant and contracted registry operator with ICANN. This also means that D3 will take on the onerous ongoing registry obligations (e.g. annual audits, compliance, etc) to ensure .APE remains in good standing. D3 acts as essentially the white-glove and full-service operator for .APE. ApeCoin DAO and the Foundation will maintain a vested interest and voice in all TLD operations, including pricing strategy, launch timeline, whitelists and blacklists, and more. Should the Foundation desire to create its own entity and maintain the complex ongoing registry obligations, D3 will be happy to facilitate the transfer for the .APE TLD once approved.

There will be no exclusivity beyond the .APE TLD: the ApeCoin DAO has the freedom to work with other grant recipients for other TLDs, although this is practically unlikely as there are economies at scale associated with hosting multiple TLDs with D3.

It should be noted however that, in considering the best interests of the Apecoin DAO and its members, it is our firm belief that D3 should hold exclusive rights to the .APE domain name extension, just like the real .COM or .XYZ domain name extension. Given the upcoming opportunities and challenges with the ICANN round, ensuring that D3 maintains exclusivity over the .APE domain extension is not just a strategic move—it is a necessary step to protect and nurture the Apecoin DAO’s growth.

BENEFIT TO APECOIN ECOSYSTEM

D3 and its affiliates will leverage its deep industry experience and accreditation to apply for and launch the .APE TLD, on behalf of the ApeCoin DAO, in the upcoming ICANN application round for new top-level domains. The .APE top-level domain will provide perpetual branding, utility, and revenue generating potential for the ApeCoin community while expanding ecosystem adoption through D3’s innovative registry and registrar, focused on top Web3 communities.

Name Tokens – Accelerating Launch and Go-To-Market

Name tokens are D3’s patent-pending methodology to distribute and scale the APE community well in advance of the establishment of .APE as a real TLD by ICANN. They offer a wide range of Web3 utility, including being used as memorable multi-chain wallet addresses, cross-platform Web3 usernames, decentralized infrastructure identifiers and more.

D3 name tokens also act as expressions of interest for our domains, and token holders will have early access to the TLDs we launch in the future (such as .APE). *APE name tokens, or Ape Names, will be displayed on D3’s marketplace alongside other community name tokens partnered with D3 to pursue a TLD application. Just like purchasing a domain name, users will pay annual fees to own an Ape Name, creating an important evergreen revenue source for the DAO. Importantly, unlike other web3 name services, name tokens are designed to accommodate D3’s application for the .APE TLD in accelerating revenue generation for the ApeCoin community while creating future utility. D3 is committed to providing the ApeCoin DAO a real-world asset in the .APE TLD.

Bringing Real-World Utility To ApeCoin

The Domain Name System (DNS) is critical Internet infrastructure that has been instrumental in the adoption, growth and accessibility of the Internet. The .APE TLD will unlock a multitude of real-world applications, combined with existing Web3 utility.

These interoperable identities will leverage D3’s extensive DNS distribution network, while allowing a user’s .APE domain to serve as a website and email address, as well as multi-chain wallet address, cross-platform user name, serve verifiable credentials and more. The DNS is a secure, well established source of truth that will combat the growing number of unapproved, Web3-specific .APE names that have sprouted recently attempting to cash in on the ‘Ape’ brand in bad faith.

This comprehensive approach leverages our domain expertise to not only advance ApeCoin’s recognition within the blockchain community, but also to position it as a versatile and widely adopted asset with relevance in both Web3 and real-world scenarios.

ApeCoin Community Growth & Brand Expansion

Upon approval of our proposal, D3 intends to provide each Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) NFT holder with a relevant *APE name token (eg. MACHI * APE, 7065 * APE) as an immediate Web3 identity solution for users until the real .APE TLD is launched. Currently, Apes use numbers to identify themselves, but with Ape Names, they will have dedicated digital identities that add even more value to their existing personas.

In addition, members of the ApeCoin community will have the exclusive opportunity to gain early access to other *APE name tokens before they are made available to the public. Following this Right of First Refusal period, *APE name tokens will be offered to the public. These *APE name tokens will serve as representations of the ApeCoin brand and community within D3’s marketplace and across the globe.

Once we have acquired and launched the .APE TLD, real .APE domains will not only work with Web3, but they will also natively resolve on the Domain Name System (DNS) for mainstream functionality like websites and email. .APE will establish a lasting brand presence on the internet and create unique, universally recognized native identities across Web2 and Web3, which can take advantage of the inherent benefits of each. D3’s approach opens the floodgates to a non-Web3 audience, expanding ApeCoin’s reach and fostering adoption among a broader demographic, thus contributing to the long-term value accrual for ApeCoin.

Long-Term Recurring Revenue Generation

Similar to .COM and .XYZ, .APE has the potential to create a new source of fast-growing recurring revenue while providing a unique, liquid, and tradeable RWA.

With the expertise from D3’s veteran team, the .APE TLD could become the next REAL, big domain extension, with the potential to drive thousands of monthly domain transactions that can generate millions in annual recurring revenue.

Illustrative Revenue Projection

OVERALL COST

3 million ApeCoin

All proceeds will be used directly to apply for, market, and launch the .APE domain extension:

• ApeCoin DAO will receive 50% of all gross revenues generated from the *APE name tokens and the .APE Top-Level Domain
• Compared to .COM (160M domains) and .XYZ (13M), the .APE TLD could create a $M+ evergreen, profitable real-world asset for the ApeCoin DAO at a fraction of scale needed (proj. $5M+ annual recurring revenue within 36 months of launch)
• D3 and ApeCoin DAO could represent .APE for a lifetime (10-year TLD rights, with auto-renewals)

D3 will incur on-going technical and operational costs related to managing the .APE namespace, with contribution from ApeCoin DAO for co-marketing into the masses.The below includes the initial budget for the .APE acquisition process (APE):

PROPOSAL