Popular crypto influencer Cobie has said the governance proposal for ApeCoin staking might not be the best way forward for the Bored Ape affiliated token.
In a blog post titled “the death of staking,” Cobie took a swipe at the concept as it is used today and questioned its purpose for ApeCoin.
Staking equals Ponzi scheme?
According to him, the initial meaning of staking was for users to give their tokens as collateral for validating blocks on a network. But now, it simply means not selling your current coins and getting rewarded with more coins.
He continued saying that most modern staking mechanisms serve no functional purpose to their ecosystem and only serve to incentivize people not to sell.
However, this isn’t enough as they’re “giving away equity for nothing except to reduce potential sellers’ liquidity,” before adding that he thinks it is a kind of Ponzi scheme.
Cobie questions ApeCoin proposed staking
Cobie proceeded to question ApeCoin’s new proposal for staking, which seeks to reward holders who stake their tokens over the next three years with 17.5% of the total ApeCoin supply.
According to the proposal, this move incentivizes
“Early NFT adopters and existing and potential ecosystem participants to participate in activities benefitting the APE Ecosystem.”
Cobie questioned the rationale behind such a decision on the premise that the ApeCoinDao’s treasury currently holds around $7 billion worth of the coin saying that the proposal looks to give…
