Yuga Labs Proposes Dissolving ApeCoin DAO for Inefficiency

Written byCoin World
Friday, Jun 6, 2025 5:36 am ET1min read

Yuga Labs has formally proposed the dissolution of the ApeCoin

, citing inefficiency and governance issues. The company aims to transition the DAO's responsibilities to a newly formed entity called ApeCo. This move is part of a broader operational overhaul intended to streamline the management and strategic direction of the ApeCoin ecosystem.

Yuga Labs CEO Greg Solano announced this development through a newly submitted Ape Improvement Proposal (AIP). Solano highlighted that the ApeCoin DAO, launched in 2022 to govern the Ethereum-based ApeCoin independently from Yuga Labs, is no longer meeting the project’s evolving needs. He cited governance stagnation, a stream of unproductive proposals, and misaligned incentives as major issues that have hindered the DAO’s effectiveness.

Solano described the DAO as being tangled up in what he called “governance theater,” where resources were directed toward vanity initiatives that didn’t have a measurable, positive impact on the ecosystem. While the DAO played a major role in the early growth of ApeCoin, its current

is now getting in the way of timely execution and clear strategic alignment. This sentiment is shared by some in the community, who have described the DAO as inefficient, overly politicized, and exploited by self-interested actors.

Under the new proposal, the ApeCoin DAO would begin a structured wind-down process, transferring its assets and governance functions to ApeCo. ApeCo will focus on developing three core pillars: ApeChain, the Bored Ape Yacht Club (BAYC), and Otherside. A key goal for ApeCo is to support high-quality projects within the APE ecosystem with stricter standards for funding. Solano emphasized that while the DAO had funded some productive initiatives, it also enabled less effective ones, and its structure is not suited for long-term growth or rapid iteration.

This move is part of a broader strategy by Yuga Labs to recapture the core operating principles that guided the company in its early, high-growth days. Solano stated that the company’s current strategy is aimed at regaining the fast-moving pace and sharp focus that initially propelled its success. The transition to ApeCo is expected to bring a more streamlined and efficient approach to managing the ApeCoin ecosystem, with a clear focus on key projects and initiatives.

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