Yuga Labs CEO Greg Solano has proposed dissolving ApeCoin DAO and transferring its assets to a new company, ApeCo. The organization would be responsible for developing three key areas: ApeChain, the Bored Ape Yacht Club, and the Otherside metaverse. The proposal stems from dissatisfaction with the quality of DAO initiatives and the ecosystem's stalled progress.
The rationale for shutting down ApeCoin DAO centers on governance issues and a decline in the quality of approved projects. According to Solano, the DAO has lost strategic focus and turned into a “bloated and unserious spectacle.” He emphasized that a significant portion of resources has been allocated to minor initiatives and “populist” proposals.
The new model would eliminate self-governance and shift to a professionally run, centralized structure. ApeCo would gain authority over resource allocation and development of the three core initiatives: the ApeChain blockchain, the Bored Ape Yacht Club (BYAC), and the Otherside metaverse.
Asset Transfer and DAO Dissolution
The proposal includes a full transfer of all DAO assets to ApeCo. These include:
- APE tokens (+5% on the news).
- Fiat and digital funds.
- Intellectual property.
- Smart contracts.
- Domains.
- Technical infrastructure.
Additionally, the budget would allocate 11.25 million APE for pre-approved staking programs and 10 million APE for legal obligations, active contracts, and administrative costs.
The plan also calls for:
- Dissolving all working groups, elected representatives, and the forum.
- Ending any governance rights of token holders.
- Voiding all previously passed proposals, except those bound by legally enforceable contracts.
Goals of the New Model
The document emphasizes that the DAO was never intended to be a flexible product development platform or a tool for agile capital management. Yuga Labs plans to deploy funds via ApeCo based on strict project quality evaluations and strategic relevance to the ApeCoin ecosystem.
Stated benefits include:
- Reducing overhead from unnecessary governance.
- Supporting developers through grants with strict conditions and phased financing.
- Focusing efforts on ApeChain and branded products.
Next Steps and Costs
According to the announcement, implementation will begin with staking funding, shutting down DAO infrastructure, and transferring assets. No additional expenses are planned — all actions will be executed using existing ApeCoin DAO resources.
The proposal has already received 139 votes on the ApeCoin Improvement Proposals platform.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.