On June 5, 2025, Yuga Labs proposed dissolving the ApeCoin DAO and replacing it with a new governing body, Apeco. This marks a significant change in the management structure of one of the most well – known token communities in the Web3 space.
The ApeCoin DAO was established in March 2022 to manage the community – driven development of the Ape ecosystem through decentralized governance. However, the DAO’s performance has received increasing criticism, especially for low voter participation and operational stagnation. Greg Solano, the co – founder of Yuga Labs, described the organization as “sluggish, noisy, and often unserious”. He believes it’s time to dissolve the ApeCoin DAO and focus on achieving success again.
The proposed plan, filed as an AIP proposal, aims to transfer all major assets of the DAO, including approximately 169 million APE tokens currently worth over $168 million, treasury funds, IP rights, smart contracts, and administrative operations, to the newly – formed Apeco controlled by Yuga Labs. If approved, Apeco will be fully responsible for managing the grant program, guiding the development of ApeChain, and overseeing key brand initiatives related to the Bored Ape Yacht Club ecosystem.
The Apeco proposal is based on an earlier governance reform approved in January through AIP – 582, which moved ApeCoin governance onto the blockchain via ApeChain with 93% support. However, the new proposal effectively nullifies that effort by completely dissolving the DAO and centralizing governance under a new legal entity.
It should be noted that this proposal is still in the idea stage and requires full approval through the DAO voting process before implementation. Large token holders, including major venture backers and ecosystem partners, have the right to amend or reject the proposal. If the proposal is passed, the operational details of transferring smart contract ownership, treasury management, and grant disbursements will become the immediate focus.
Apeco, as proposed, will operate with a smaller and more professional structure, focusing on the execution and strategic growth of the Ape ecosystem’s assets, including Otherside and ApeChain. This new model is expected to speed up decision – making and better allocate resources to high – potential projects, thereby enhancing the role of ApeCoin in the digital asset and NFT markets.
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