AIP-582: ApeChain, On-chain – ApeCoin DAO Governance Revamp

madebyapesvote.eth delegation

Live AIPs that went up for vote this week in the ApeCoin DAO have been duplicated on the Made By Apes Snapshot. Each proposal requires a 10% quorum of valid wallets in order for it to pass. Quorum is 42 total for or against votes, abstains do not count towards quorum. If quorum is reached on a proposal, then all $APE delegated to madebyapesvote.eth will be cast in favor of the majority vote. Votes are limited to once per wallet per proposal. For more info: https://x.com/BoredApeYC/status/1841584023245635961

—

Disclaimer: Due to the recent approval of AIP-436, all AIPs requesting an allocation denominated over US$250,000 will require a super majority approval of 69% of the total number of votes cast. The Foundation has already begun coordinating to develop our new Snapshot strategy to automate these new decision making guidelines, however, we will ensure compliance with this guideline manually in the interim.

This AIP falls above that threshold and will require 69% of votes to be approved.

PROPOSAL DESCRIPTION

This AIP proposes replacing AIP-1 and AIP-2 and guiding the ApeCoin DAO to a drastically more effective governance process by removing administrative layers and moving more decision-making on-chain. This proposal would place more autonomy and power into the hands of the ApeCoin DAO, while focusing the DAO’s efforts on growing ApeChain.

Key Points:

1. DAO Treasury:

• On-chain DAO treasury using Governor Bravo contracts
• 75/25 split
• 75% of total treasury placed on-chain for the ApeCoin DAO
• 25% of total treasury provided to Ape Foundation for its Administrative Budget
• Power directly in hands of ApeCoin DAO

2. ApeChain Protocol Upgrades:

• On-chain protocol upgrades and updates using Governor Bravo contracts, governed by the ApeCoin DAO

3. Creating the Executive Director role and clarifying the role of Special Council:

• Establishing an Executive Director of the APE Foundation, responsible for driving ApeChain’s growth and enhancing ApeCoin’s value.
• Creating an Audit Committee, to provide oversight over the Executive Director and the APE Foundation budgeting and finances.
• Clarifying that Special Council members are no longer involved in the AIP process, and current Special Council terms will be extended by 6 months to provide continuity and guidance in light of this governance revamp.

4. Replacing AIP-1 and AIP-2, and adopting the ApeCoin DAO Constitution (see below in the “Benefit to ApeCoin Ecosystem” section).

BENEFIT TO APECOIN ECOSYSTEM

1. On-Chain DAO Treasury:

a. Splitting the treasury (and locked APE streams) in a 75/25 split: i. 75% of the treasury and unlocking APE will be directed to an on-chain DAO treasury contract, which will be controlled directly by the ApeCoin DAO. ii. 25% of the treasury and unlocking APE will be directed to the Ape Foundation for its Administrative Budget, which will be utilized to build and maintain ApeChain, and to support the administrative needs of the ApeCoin DAO.

b. DAO-Controlled Drip Contract: In order to keep in line with transparency, decentralization and accountability to the ApeCoin DAO, the 25% treasury split for the Administrative Budget will be held in a multi-sig, over which the ApeCoin DAO will hold an admin key and be able to “clawback” such funds and send them to the DAO treasury contract.

c. Of the funds in the DAO-Controlled Drip Contract, 2,500,000 APE will immediately be claimable by the Ape Foundation, while the remainder will “drip” along a monthly scheduled rate of 18 months, which will be able to be claimed by the Ape Foundation.

d. The timer on the 18 month DAO-Controlled Drip Contract starts when the treasury moves on-chain.

e. The monthly unlocks of $APE which accrue to the DAO each month according to the ApeCoin tokenomics will also be allocated at a 75/25 split between the DAO treasury and the Ape Foundation Administrative Budget. These unlocks will also be sent to a DAO-Controlled Drip Contract, and will “drip” over 18 months, with the timer starting when the treasury moves on-chain.

2. On-Chain Protocol Upgrades and Updates:

a. The ApeCoin DAO, and the Security Council (as introduced below), will be given “chain owner” privileges over ApeChain, having the power to directly propose, vote on and implement ApeChain upgrades and updates.

3. Introduction of the Security Council:

a. With the mainnet launch of ApeChain, security should be the utmost priority for the ApeCoin DAO. Given that the governance process is subject to a timeline unfit for quickly addressing emergency situations, it is critical that there be a fail-safe to quickly and immediately react to potential security threats to ApeChain.

b. To address this issue, a democratically elected Security Council will be empowered to implement certain Emergency and Non-Emergency Actions, as described further in the Constitution of the ApeCoin DAO.

4. Introduction of the Executive Director and Audit Committee, and clarifying the role of Special Council:

a. Establishing an Executive Director of the APE Foundation, responsible for driving ApeChain and ApeCoin ecosystem growth.

b. The Executive Director will be hired via a transparent process overseen by Special Council, Foundation Directors and the Audit Committee.

c. Establishing an Audit Committee, composed of holders of at least 10,000,000 ApeCoin, which will be responsible for providing oversight of the Executive Director. This Audit Committee will have the authority to perform a quarterly audit of the budget and finances of the APE Foundation. The Audit Committee will also have the authority to remove an Executive Director.

d. Rather than serving as the last filter before an AIP is put up for vote by the ApeCoin DAO, the Special Council’s Administrative Review will no longer be a prerequisite for an AIP to go to vote by the ApeCoin DAO, and the Special Council will instead act purely as ambassadors of the ApeCoin DAO once on-chain governance has been implemented. This would include advocating for the ApeCoin DAO and the ApeCoin ecosystem, educating others outside of the DAO and providing advice and guidance to members of the DAO and Foundation. Upon the passage of this AIP, for the sake of continuity and in light of a monumental change to the ApeCoin DAO governance system, the current Special Council members’ terms will each be extended for 6 months

e. Once on-chain voting has begun and the Executive Director is hired, Special Council compensation will be changed from the current $125,000 per year, to 100,000 $APE per year. Responsibility for the selection, appointment and compensation of the Executive Director would be left to the Special Council, Directors, and Audit Committee.

f. Responsibilities previously assigned to the Special Council will be reassigned to the Executive Director. With the passage of this AIP, AIP-454 will be amended to remove references to the Special Council and instead replace their final oversight role with the directors and administrators of the Ape Foundation.

By adopting the below proposed Constitution, inspired directly by the ArbitrumDAO Constitution, the ApeCoin DAO will be empowered to have a stronger voice and on-chain authorities and powers to shape the future of the ApeCoin ecosystem and ApeChain.

OVERALL COST

Total amount requested from the ApeCoin Ecosystem Fund = $100,000 one-time cost + $275,000 per year.

Estimated cost of building DAO governor contract, audits, and on-chain voting UI: $100,000

Each Security Council member shall receive $25,000 per year. There are 11 Security Council members proposed. The total cost of which would be $275,000.

Breakdown of Treasury Allocations:

Total APE unlocked & available: 19,342,665.34

Total APE locked: 110,156,250

Unlocked allocations if treasury split occurred today:

• Administrative Budget: 4,835,666 $APE
• DAO Treasury: 14,506,999 $APE

Locked allocations if treasury split occurred today:

• Administrative Budget: 27,539,062 $APE

• DAO Treasury: 82,617,187 $APE

All figures current as of January 15, 2025. Note that the Administration Budget allocations are subject to an 18 month drip contract, with the timer starting from when the treasury moves on-chain. Available means not currently allocated to a grant via an approved AIP. *Locked refers to the $APE which is still locked and which unlocks monthly according to the ApeCoin tokenomics unlock schedule.

PROPOSAL

Link to the full proposal: (https://forum.apecoin.com/t/aip-582-apechain-on-chain-apecoin-dao-governance-revamp/26936)

The AIP implementation is administered by the Ape Foundation. Implementation may be immaterially or materially altered to optimise for security, usability, to protect APE holders, and otherwise to effect the intent of the AIP. Any material deviations from an AIP, as initially approved, will be disclosed to the APE holder community.

Disclaimer: Due to the recent approval of AIP-436, all AIPs requesting an allocation denominated over US$250,000 will require a super majority approval of 69% of the total number of votes cast. The Foundation has already begun coordinating to develop our new Snapshot strategy to automate these new decision making guidelines, however, we will ensure compliance with this guideline manually in the interim.

This AIP falls above that threshold and will require 69% of votes to be approved.