Yuga Labs has proposed dissolving the ApeCoin DAO and replacing it with a new governing body, ApeCo. This would mark a decisive shift in the management structure of one of Web3’s most recognizable token communities.

Filed as an AIP proposal on June 5, the plan would sunset the DAO and transfer all major assets, including treasury funds, IP rights, smart contracts, and administrative operations, to a newly formed corporate entity led by Yuga.

The proposal arrives amid growing dissatisfaction with the DAO’s performance. Greg Solano, co-founder of Yuga Labs, described the organization as having become “sluggish, noisy and often unserious,” declaring “it’s time for ApeCoin to sunset the DAO and get back to winning.”

In a post on X, Solano argued that “people want to kill the ApeCoin DAO” and called for a “leaner, faster org to take the reins.”

The envisioned transition would entail migrating the DAO’s assets, which include approximately 169 million APE tokens currently valued at over $168 million, into ApeCo’s control. If approved, ApeCo would assume full responsibility for managing the grant program, directing ApeChain development, and overseeing key brand initiatives associated with the Bored Ape Yacht Club ecosystem.

ApeCoin DAO was launched in March 2022 to steward the community-driven evolution of the Ape ecosystem through decentralized governance. However, the DAO’s performance has drawn mounting criticism from core stakeholders, including Yuga, particularly around low voter engagement and operational stagnation.

The ApeCo proposal builds on an earlier governance revamp approved in January through AIP-582, which moved ApeCoin governance on-chain via ApeChain with 93% support.

That measure shifted the bulk of the treasury into the ApeChain ecosystem, but the new proposal effectively renders that effort moot by dissolving the DAO entirely and centralizing governance under a new legal entity.

Apes united?

Community response has mainly been supportive in the early stages, with most forum comments indicating approval. Some dissenting voices remain, including DAO contributor Lanzer, who rejected the claim that the DAO has failed and warned of reputational damage from dissolving the structure altogether.

If enacted, this would constitute one of the most sweeping rollbacks of a DAO to founder-led control in recent crypto history. The implications extend beyond the Ape ecosystem, raising renewed scrutiny on the long-term viability of token-holder governance in Web3.

The move also comes on the heels of the SEC’s decision in March to close its investigation into Yuga’s NFT offerings without pressing charges, removing one regulatory overhang as the company reasserts control over its ecosystem.

The AIP remains in the Idea stage and will require full approval before implementation through the DAO voting process. Large token holders, including major venture backers and ecosystem partners, retain the ability to amend or reject the proposal.

Should it pass, the operational logistics of transitioning smart contract ownership, treasury management, and grant disbursements will become immediate focal points.

Solano’s framing of the DAO’s shortcomings illustrates the broader sentiment that, while aspirational, decentralized governance may struggle to support fast-moving brand and protocol development.

ApeCo, as proposed, would operate with a smaller, professionalized structure focused on the execution and strategic growth of the Ape ecosystem’s assets, including Otherside and ApeChain.

The transition would mark a foundational shift in how one of crypto’s most prominent communities governs its capital and IP.

Mentioned in this article

The financial services firm co-founded by billionaire entrepreneur and former US presidential candidate Vivek Ramaswamy entered into a strategic partnership to acquire a significant amount of Bitcoin (BTC).

In a new filing with the U.S. Securities and Exchange Commission (SEC), the Ohio-based Strive says it is joining hands with 117 Castell Advisory Group LLC to secure Bitcoin holdings at a discount price.

The plan is to go after BTC claims that have already received definitive legal judgments but are still awaiting distribution.

Strive is interested in the Bitcoin claims related to Mt. Gox. The now bankrupt crypto exchange operated between 2010 and 2014 and oversaw more than 70% of Bitcoin transactions at its peak. The Tokyo-based firm collapsed following a security breach that led to the theft of 750,000 BTC.

The 75,000 BTC claims from the Mt. Gox estate are currently worth over $8.2 billion based on the flagship crypto asset’s price of $109,963.

“This strategy is intended to allow Strive the opportunity to purchase Bitcoin exposure at a discount to market price, enhancing Bitcoin per share and supporting its goal of outperforming Bitcoin over the long run.”

Strive submits the disclosure as it plans to team up with the social media marketing firm Asset Entities to form the first publicly traded asset management Bitcoin treasury company.

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