Yuga Labs Proposes Dissolving ApeCoin DAO, Transferring Assets to ApeCo

Yuga Labs has proposed a significant restructuring of the ApeCoin DAO, aiming to dissolve the decentralized autonomous organization and transfer its assets to a new entity called ApeCo. This proposal, filed as an AIP (Ape Improvement Proposal) on June 5, seeks to transfer all major assets, including treasury funds, intellectual property rights, smart contracts, and administrative operations, to ApeCo, a corporate entity led by Yuga.

The proposal comes amidst growing dissatisfaction with the DAO’s performance. Greg Solano, co-founder of Yuga Labs, described the DAO as having become “sluggish, noisy and often unserious,” and called for a “leaner, faster org to take the reins.” Solano argued that the community wants to see the ApeCoin DAO dissolved and replaced with a more efficient governing body.

The envisioned transition involves 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.

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.