Yuga Labs is pushing to overhaul the ApeCoin ecosystem with a proposal to shut down the ApeCoin decentralized autonomous organization (DAO) and replace it with a new management entity called ApeCo.
In a new Ape Improvement Proposal (AIP), Yuga Labs CEO Greg Solano said the DAO played a critical role in the project’s early momentum, but it has since become dysfunctional. The executive said the DAO gets in the way of meaningful development.
“What started with promise has devolved into sluggish, noisy, and often unserious governance theater,” Solano said. “Too many resources have gone to vanity proposals and low-impact initiatives.”
Solano said the next chapter for ApeCoin requires sharper focus, faster execution and a more professional operating model. “People want to kill the ApeCoin DAO. This AIP proposes just that. It’s time for a leaner, faster org to take the reins,” the executive wrote on X.
Yuga proposes a complete wind-down of the DAO system
The proposal outlines a complete termination of the DAO governance system, including eliminating all governance rights held by tokenholders, nullifying previous AIPs and dissolving working groups and elections.
The DAO’s assets, which include ApeCoin (APE) tokens, intellectual property, smart contracts and infrastructure, will be transferred to the new management entity, ApeCo.
The executive said ApeCo would set a higher bar for what initiatives would receive support, taking a more disciplined approach to funding.
The organization will be established directly by Yuga Labs and will be responsible for supporting high-caliber builders. In addition, it will be tasked with bolstering ecosystem projects like ApeChain, Bored Ape Yacht Club (BAYC) and Otherside.
“We’re building the best chain in crypto and expanding the most iconic brand in NFTs,” Solano wrote. “ApeCoin should be the economic engine for that future.”
Yuga Labs proposal gains community support
Responses to the proposal have been mostly supportive, with many welcoming the shift toward a more focused structure. User TheDonDiablo777 voiced enthusiasm. “I fully support this and am happy to see it in motion,” they said.
Community member Apewhale said there was fatigue and inefficiency with the DAO model. “DAO fatigue is real. ApeCo sounds like the reset we’ve been needing with clearer ops, stronger leadership, and still space for the community to win. Let’s build smarter,” Apewhale wrote.
Despite the support, not everyone is aligned with the transition. Community member Lanzer objected to the move, calling it “bad optics” for Yuga Labs and its CEO. The user criticized the proposal’s rollout and rejected the idea that the DAO had failed.
“I do not think the ApeCoin DAO should be absorbed by Yuga,” he said, expressing concerns around the sequence of events that led to the proposal.
Magazine: Baby boomers worth $79T are finally getting on board with Bitcoin
