Yuga Labs Proposes Dissolution of ApeCoin DAO in Favor of New Structure ApeCo

Yuga Labs has proposed to discontinue the operations of the ApeCoin DAO. In its place, they plan to establish a new organization aimed at enhancing the APE token ecosystem.

Greg Solano, CEO of Yuga Labs, referred to the organization as a bold yet outdated experiment. He noted that the once-promising initiative has devolved into a «slow, noisy, and often unserious governance theater.»

To preserve and enhance the sole effective function of the DAO, which is funding developers, Yuga Labs suggests replacing it with a new entity called ApeCo.

The focus will be on advancing three main areas of the ecosystem: the ApeChain blockchain, the Bored Ape Yacht Club NFT collections, and the Otherside metaverse. The company also intends to enhance opportunities for «real» developers through grants that will be released in stages and by tightening oversight.

User X, known as OGDfarmer, expressed that the DAO «was a laughingstock, a drag on the entire ecosystem, plagued by inefficiency, slowness, and excessive politicization from the outset, with dishonest participants and extortionists everywhere.»

He believes that Yuga Labs under Solano’s leadership will perform better.

If the proposal is accepted, the ApeCoin DAO will be dissolved. Token holders will lose all governance and asset-related rights. Previous improvement proposals, known as AIPs, will be nullified. Delegated authorities, working groups, and forums will also cease to operate.

The new initiative from Yuga Labs has received mostly positive feedback on the ApeCoin forum. The proposal is currently under discussion and is intended to gauge community sentiment rather than serve as an official decision.

At the time of writing, APE is trading at $0.73 (+3.6% in 24 hours), according to CoinGecko.

It’s worth noting that in May, Yuga Labs sold the rights to the CryptoPunks NFT collection to the non-profit organization The Infinite Node Foundation.