ApeCoin: Yuga Labs Wants to Replace DAO with New ‘ApeCo’ to Focus on BAYC, Otherside

Yuga Labs has formally proposed shutting down the ApeCoin DAO and transitioning its responsibilities to a newly formed entity, ApeCo, as part of a broader operational overhaul.

Yuga Labs CEO Greg Solano this development through a newly submitted Ape Improvement Proposal (AIP), signalling a huge shift in the management and strategic direction of the ApeCoin ecosystem.

According to Solano, the ApeCoin DAO, which was launched back 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 been hurting the DAO’s effectiveness.

Solano said the DAO had become tangled up in what he called “governance theater.” In his view, this led to resources being directed toward vanity initiatives that didn’t have a measurable, positive impact on the ecosystem. He did note that while the DAO played a major role in the early growth of ApeCoin, its current structure is now getting in the way of timely execution and clear strategic alignment.

This sentiment appears to be shared by some in the community. The DAO has faced ongoing challenges in delivering effective governance outcomes. One user on X, @OGDfarmer, described it as a “burden on the community,” calling the DAO “inefficient, overly politicised, and exploited by self-interested actors.” That user added that Yuga Labs, especially under Solano’s leadership, seemed better positioned to steer ApeCoin’s future.

Under this new proposal, the ApeCoin DAO would start a structured wind-down process. During this, it would transfer its assets and governance functions over to ApeCo, the new entity created by Yuga Labs. Solano explained that ApeCo would then concentrate its efforts on developing three core pillars: ApeChain, the Bored Ape Yacht Club (BAYC), and Otherside.

A key stated goal for ApeCo is to support high-quality projects within the APE ecosystem. This will come with stricter standards for which projects get funding. Solano did emphasize that while the DAO had funded some productive initiatives in the past, it also ended up enabling less effective ones. He believes the DAO’s structure just isn’t suited for long-term growth or the kind of rapid iteration needed in this space.

Greg Solano, who recently resumed his role as Yuga Labs’ CEO, said these proposed changes are all part of a broader push. The effort is to get Yuga Labs back to the core operating principles that guided the company in its early, high-growth days.

He clearly stated that the company’s current strategy is aimed at regaining the fast-moving pace and sharp focus that initially propelled its success.