Yuga Labs CEO Greg Solano has proposed the dissolution the ApeCoin DAO in favour of creating a new centralised entity called ApeCo.

The suggestion reflects a significant shift in governance strategy, moving away from a community-led model to a more controlled structure overseen by Yuga Labs. This plan involves transferring all assets and responsibilities from the DAO to ApeCo, which would take over management of projects such as ApeChain, the Bored Ape Yacht Club, and Otherside.

The proposal is currently open for review by ApeCoin tokenholders, who will decide through a formal vote whether the transition should proceed.

Why is Greg Solano proposing to dissolve ApeDAO?

In his official proposal, Solano described the ApeCoin DAO as “sluggish, noisy, and often unserious,” noting that whilst the DAO helped launch ApeCoin, it has struggled to deliver consistent, high-impact outcomes.

He criticised the DAO for funding what he described as “gridlock, governance theater, vanity proposals, and low-impact noise” and suggested that the decentralised governance model is no longer suitable for the ecosystem’s evolving needs.

Solano argues that a more centralised structure under ApeCo would enable faster decision-making and better allocation of resources, particularly towards core areas like ApeChain and the Bored Ape Yacht Club.

What’s next for ApeCoin DAO?

If the proposal is approved, the ApeCoin DAO would be formally dissolved, with all its assets—including APE tokens, smart contracts, intellectual property, and technical infrastructure—transferred to ApeCo. Governance rights held by tokenholders would be revoked, and the DAO’s forums, elections, and working groups would be shut down.

The plan includes funding an existing staking contract with 11.25 million APE and reserving 10 million APE for legal and operational expenses during the transition.

The proposal now awaits a community vote from ApeCoin holders and a formal on-chain vote will determine whether the DAO’s closure and ApeCo’s establishment will proceed.

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

Yuga Labs has recently sold the intellectual property rights to the Moonbirds NFT collection to a new player in the crypto gaming space—Orange Cap Games.

Announced on Friday, the deal marks Yuga Labs’ third major divestment of a high-profile NFT collection in 2025, following the sales of CryptoPunks and Meebits earlier this year.

Whilst financial terms were not disclosed, the sale signals a continued shift in strategy at Yuga Labs as it narrows its focus to its core offerings, including its flagship Bored Ape brand and the long-awaited Otherside metaverse game.

Why is Yuga Labs selling Moonbirds?

Yuga Labs acquired Moonbirds as part of its purchase of Proof in February 2024, at a time when the NFT market was still in recovery after a steep decline. The deal was seen as an effort to consolidate promising NFT IP under one roof. Kevin Rose, co-founder of Proof and a prominent figure in web3, joined Yuga as an advisor following the acquisition.

However, in recent months, Yuga Labs has made clear that it intends to refocus its efforts on its original projects. In addition to Moonbirds, it has transferred control of both the Meebits and CryptoPunks IP, which were obtained from Larva Labs in 2022. These moves reflect an internal strategy shift prioritising development of the Bored Ape Yacht Club and Otherside, while moving away from managing outside collections.

The company said the Moonbirds brand would benefit from a team fully dedicated to it—something Yuga Labs could no longer provide.

What to expect from Orange Cap Games?

Orange Cap Games is a relatively new entrant to the crypto gaming scene, best known for Vibes TCG, a trading card game themed around Pudgy Penguins and launched on the Ethereum layer-2 network Abstract.

Although the company has yet to outline specific plans for Moonbirds, it has indicated that any future blockchain-based content will be launched on a layer-1 chain or on ApeChain, an Ethereum-based layer-2 network supported by Yuga Labs. The studio has not announced whether Moonbirds will be integrated into future games or adapted into other formats, such as collectibles or interactive media.

In a post on X, Yuga Labs CEO Greg Solano praised Orange Cap’s leadership, describing them as “smart” and “detail-oriented: builders, and suggested the studio would be a better long-term home for the project.

What’s next for Moonbirds?

Despite the transfer of ownership, Moonbirds characters are still expected to appear in Otherside, Yuga Labs’ long-running metaverse project that remains in active development.

Moonbirds launched in April 2022 with significant fanfare, generating over $280 million in primary and secondary trading within days. The collection was seen as a flagship project for Proof, which raised roughly $60 million in funding to build a broader ecosystem of content and events. However, as market interest waned in late 2022 and throughout 2023, Proof faced growing criticism from holders and ultimately sold the IP to Yuga Labs early the following year.

Now, under a new owner, Moonbirds IP—along with its affiliated Mythics and Oddities collections—will now be managed by Orange Cap Games, which has emerged as a developer of both digital and physical trading card games.

Yuga Labs has handed off the Moonbirds, Mythics, and Oddities NFT collections to Orange Cap Games, signalling a shift in how the company wants to operate moving forward. The move shows where the NFT giant sees long-term value and where it’s willing to let others take the lead.

Key Takeaways

• Yuga Labs sold Moonbirds, Mythics, and Oddities to Orange Cap Games as it narrows its focus to core projects.

• Orange Cap Games plans to build on these NFT collections within its growing game development ecosystem.

• The sale follows earlier Yuga divestments like CryptoPunks and Meebits.

• Despite the sale, Moonbirds will remain part of Yuga’s Otherside metaverse through continued interoperability and character inclusion within the virtual world framework.

Why Yuga Sold Moonbirds: Strategic Refocus

This wasn’t just another NFT deal. Moonbirds, Mythics, and Oddities had been part of Yuga Labs’ portfolio for barely a year after it acquired them through PROOF. But with the market cooling and attention spans shrinking, Yuga decided to sharpen its focus. Instead of trying to manage multiple brands, it’s doubling down on what it knows best: Bored Ape Yacht Club and Otherside.

In that context, passing these collections to Orange Cap Games makes sense. It’s not a retreat—it’s a realignment. And it comes on the heels of similar moves: Yuga also sold off CryptoPunks and Meebits earlier this year. The message is clear—Yuga wants to get lean and stay focused.

Moonbirds NFTs on OpenSea

Who Is Orange Cap Games?

Orange Cap Games might not have the name recognition Yuga does, but it’s been making quiet waves in the NFT space. The team is already behind Vibes TCG, a collectible card game known for its cultural resonance and hybrid experiences. Vibes features sets like “Enter the Huddle” and “Legend of the Lils,” centred around Pudgy Penguins.

Now, with Moonbirds under its wing, OCG has a chance to do something different. They’re not just picking up a brand—they’re picking up a community that’s been waiting for a second wind.

As part of the acquisition terms, Orange Cap Games has stated that any future on-chain components of the Moonbirds IP will be deployed either on Ethereum mainnet or—if using a Layer 2 solution—exclusively on ApeChain.

Critically, Moonbirds will retain active functionality within Otherside via avatar representation, access permissions, and potential future story arcs—ensuring they remain part of Yuga’s immersive ecosystem.

Market and Community Reaction: Optimism and Momentum

As of June 2, 2025, the floor price of Moonbirds NFTs is approximately 0.9 ETH, following renewed interest sparked by the acquisition. According to data from CoinGecko, the price surged over 150% in the past 7 days, with strong upward momentum starting around May 30. In the past 24 hours alone, Moonbirds saw a 22.6% increase, underscoring a dramatic return of attention to the collection.

For context, the all-time high floor price for Moonbirds was 37.8 ETH (about $115,500 USD) in April 2022. Some rare Moonbirds even fetched up to 265 ETH (approximately $804,600) during peak hype, though the average floor hovered around 37–38 ETH. The current rebound, while far below those historic highs, marks the most meaningful upward movement in months.

And that optimism is being met with vision. OCG describes Moonbirds as having “been nesting during the bear market” and believes the brand’s nonlinear journey is actually its greatest strength.

Final Thoughts: A Hand-Off with Purpose

What’s happening here isn’t unusual in maturing industries—assets get reassigned, priorities shift, and new leaders step up. Yuga Labs, once the face of NFT expansion, is now tightening its scope. Meanwhile, Orange Cap Games is stepping into a bigger spotlight, bringing with it a fresh approach to NFT-powered games and storytelling.

For Moonbirds holders and observers alike, this shift brings something that’s been missing for a while: direction. It’s too early to say exactly what the next phase looks like, but the pieces are now in place for a renewed effort—one that could bridge the gap between past hype and future substance.

The company that created the Bored Ape Yacht Club (BAYC) NFTs, Yuga Labs, is celebrating a significant court win. Without pursuing any enforcement measures, the US Securities and Exchange Commission (SEC) has formally concluded its investigation into the company.

This decision brings an end to a probe that lasted more than three years and questioned whether Yuga Labs’ NFT sales and its ApeCoin (APE) token should be classified as securities.

The SEC Probe And Its Purpose

The SEC first launched its investigation into Yuga Labs in October 2022. At the time, regulators were looking into whether BAYC NFTs and ApeCoin fell under federal securities laws. The inquiry was part of a broader effort to determine how digital assets should be regulated in the US.

Yuga Labs maintained throughout the investigation that NFTs are not securities. On March 3, 2025, the company announced on X (formerly Twitter) that the SEC had officially closed its case, calling it “a huge win for NFTs and all creators pushing our ecosystem forward.”

After 3+ years, the SEC has officially closed its investigation into Yuga Labs.

This is a huge win for NFTs and all creators pushing our ecosystem forward. NFTs are not securities.

— Yuga Labs (@yugalabs) March 3, 2025

A Long Wait For Clarity

Yuga Labs worked in the shadow of the SEC’s probe for over three years. The NFT space was tense due to the uncertainties around possible regulatory action. Many industry participants were concerned that a decision against Yuga Labs might result in more stringent guidelines for other NFT initiatives.

Now that the case has been dropped, some see it as a sign that regulators might be rethinking their approach to NFTs. Others believe this could simply be one of many steps before the SEC fully determines how it wants to handle digital collectibles.

How The NFT Market Reacted

The news was met with a positive response from the NFT community. Yuga Labs supporters and industry figures hailed the SEC’s decision as a sign that NFTs may not face the same regulatory scrutiny as some cryptocurrencies.

But it’s still not clear what the SEC will do with other NFT projects in the future. The investigation into this case is over, but that doesn’t mean that similar ones won’t happen again in the future. For now, Yuga Labs has come out on top.

What This Means For Crypto Regulation

The SEC’s decision to discontinue its investigation without filing charges may have an impact on how regulators view NFTs in the future. While this does not establish a legal precedent, it does suggest that the agency is willing to distinguish between different sorts of digital assets.

Some experts think this could be a turning point, while others warn that it will be a long time before regulations are clear. No matter what, the end of this probe is good for Yuga Labs and the NFT space as a whole.

Featured image from Gemini Imagen, chart from TradingView