In a move that could redefine the future of one of the most well-known projects in Web3, Yuga Labs CEO Greg Solano has formally proposed the dissolution of the ApeCoin DAO and the establishment of a new management entity called ApeCo.
The proposal, “Sunsetting the DAO and Launching ApeCo,” was launched on June 5 on the ApeCoin forum. It aims to formally dismantle the existing decentralized autonomous organization and shift control of the ApeCoin ecosystem to a centralized but more focused and streamlined structure.
Why does the Yuga Labs CEO want the ApeCoin DAO dismantled?
According to Solano, the DAO has outlived its utility and now hinders rather than supports meaningful progress. He described the current state of the DAO as sluggish, noisy, and often unserious governance theater, expressing frustration over what he sees as wasted resources on vanity projects and low-impact initiatives.
While the DAO once played a crucial role in ApeCoin’s early momentum, Solano argued that the model has failed to maintain relevance in today’s rapidly evolving NFT and blockchain landscape.
Solano emphasized that ApeCoin’s next chapter requires sharper execution, stronger leadership, and a more professional operating framework. As such, ApeCo would be formed to take over governance and development responsibilities. The new entity, established directly by Yuga Labs, would prioritize efficiency, clarity, and high-quality ecosystem building.
ApeCo is set to focus its efforts on three core pillars: ApeChain, the Bored Ape Yacht Club (BAYC), and the Otherside metaverse.
Solano claims this tighter scope will allow for better use of resources and more decisive strategic planning.
In contrast to the DAO’s open governance model, which granted tokenholders voting rights on all major decisions, ApeCo would operate with centralized oversight but would still aim to support builders and projects that bring tangible value to the ecosystem.
Transitioning from ApeCoin DAO to ApeCo
The transition would involve transferring all assets currently held by the ApeCoin Foundation and DAO, including smart contracts, IP, infrastructure, and remaining tokens, to ApeCo.
However, Solano assured the community that obligations such as funding staking contracts and covering legal and administrative costs would be fully honored before the transfer.
Majority of the community members are in support of the proposal
Community reaction to the proposal has been largely supportive. Many ApeCoin holders have expressed fatigue with the DAO model, voicing frustration with its inefficiencies. Comments across forums and social media reflect a sense that the time is right for a reset.
Solano claims there is “near-unanimous support” for the transition, though not all community members are on board. Some, like longtime DAO contributor Lanzer, have criticized the optics of the move and questioned whether dissolving the DAO reflects poorly on Yuga Labs.
The ApeCoin (APE) cryptocurrency has also seen its price jump by close to 4% on CoinMarketCap following the unveiling of the proposal.
The proposal appears to align with broader changes Yuga Labs has been implementing since Solano returned as CEO. The company has divested from several NFT projects, including Moonbirds and CryptoPunks, to refocus on its core IP and infrastructure. This shift suggests a renewed commitment to refining the brand’s identity and reclaiming the agility it had during its early success.
If the proposal passes the governance review by the ApeCoin DAO Special Council, it will proceed to a formal vote. Voting periods for such proposals open twice monthly, on the first and third Thursdays at 9:00 p.m. ET.
For now, the fate of the ApeCoin DAO hangs in the balance, with its future potentially giving way to a more centralized but potentially more effective approach. What began as a decentralized experiment in Web3 governance could soon make way for a leaner, faster vision under Yuga Labs’ renewed leadership.