Yuga Labs Proposes Scrapping ApeCoin DAO, Launching ApeCo

Yuga Labs, the creator of the Bored Ape Yacht Club NFT collection, is proposing a significant restructuring of its governance model. CEO Greg Solano has submitted an Ape Improvement Proposal (AIP) aimed at dissolving the existing ApeCoin DAO (decentralized autonomous organization) and replacing it with a new entity called ApeCo. This move comes after two years of operation, with Solano characterizing the DAO as inefficient and ineffective.

Solano’s criticism points to the DAO’s perceived sluggishness, excessive noise, and a tendency towards “unserious governance theater.” He argues that the DAO’s funding has been misallocated to “vanity proposals and low-impact initiatives,” hindering the overall growth of the ApeCoin ecosystem. The proposed solution is ApeCo, a more centralized structure under direct control of Yuga Labs. This new entity promises to streamline decision-making, eliminating the perceived “gridlock” that has plagued the DAO.

ApeCo’s primary focus will be on three key pillars: ApeChain, the Bored Ape Yacht Club, and Otherside, Yuga Labs’ metaverse project. By concentrating resources on these areas, Yuga Labs aims to accelerate development and deliver higher-impact initiatives. The transition plan involves a series of steps. First, ApeCo would bolster the APE staking contract with an injection of 11.25 million APE (approximately $8.3 million). A further 10 million APE would be reserved for legal and transitional expenses. Finally, all remaining assets within the Foundation treasury, including tokens, domains, and smart contracts, would be transferred to ApeCo.

The AIP’s implementation would effectively shut down all active governance powers, working groups, and future AIPs within the current DAO structure. Crucially, the proposal is currently presented as a “temperature check,” signifying a preliminary gauge of community sentiment. A formal on-chain vote is required before the restructuring can proceed. If the proposal passes, ApeCo will initiate operations by funding staking programs, decommissioning the DAO’s infrastructure, and consolidating all remaining APE into its newly established treasury. This would mark the end of one of the crypto space’s most prominent NFT-focused governance structures.