ApeCoin DAO Faces Shutdown as Yuga CEO Proposes New ApeCo Model

key Insights:

• Yuga Labs CEO Greg Solano proposes ending ApeCoin DAO for faster governance structure.
• New entity ApeCo aims to streamline capital deployment and support ecosystem development efficiently.
• Community feedback shows strong approval for dissolving DAO and launching professional operations model.

Yuga Labs CEO Greg Solano, known online as Garga.eth, has submitted a proposal to sunset the ApeCoin DAO and launch a new entity called ApeCo. The proposal follows what Solano described as “near-unanimous support” from the community, citing persistent dysfunction, slow execution, and misaligned incentives as reasons for the overhaul.

“People want to kill the ApeCoin DAO. This AIP proposes just that,” Solano posted on X, referencing his new Ape Improvement Proposal. The shift aims to streamline governance and redirect capital toward core products like ApeChain, Bored Ape Yacht Club, and Otherside.

Solano: DAO No Longer Serves Its Purpose

In a detailed June 5 forum post, Solano called the DAO a relic of an earlier crypto era.

“It started with promise, but quickly spiraled into gridlock, governance theater, vanity proposals, and low-impact noise,” he wrote. He argued that the DAO had become misaligned with Yuga Labs’ long-term goals and could no longer support the scale or pace needed for product innovation.

Solano, who returned as Yuga CEO earlier this year, emphasized the need for “faster product cycles, cleaner capital deployment,” and a professional structure that favors execution over politics.

The proposed replacement, ApeCo, would take over the DAO’s remaining responsibilities and assets—excluding locked staking contracts and legal commitments. The mission, he said, would be to “supercharge the APE ecosystem” by backing high-quality builders and maintaining a laser focus on impact and alignment.

From Governance Theater to Execution

Since launching in March 2022, the ApeCoin DAO has allowed APE holders to vote on initiatives affecting the ecosystem. While initially praised for its decentralization, critics say it evolved into a bloated bureaucracy.

Solano’s post received strong engagement on X, with many community members applauding the proposal. “Wish this happened like two years ago,” one user replied. Solano responded, “Yeah, me too buddy.”

The forum proposal has so far gathered over 130 votes. It argues that DAO funds were too often directed to low-impact proposals or individuals who delivered little value. AIP author Makash, the founder of Raccoon Gin Ape and co-initiator of Ape Improvement Proposal 495, supported the idea.

“Sunsetting the DAO is not the end,” Makash posted. “It’s the maturation of what the Ape community dreamed ApeCoin could become.”

ApeCo to Prioritize Speed, Quality, and Accountability

Under the new model, ApeCo would oversee the APE token economy with a mandate to support “games, culture, and builders” across ApeChain and its affiliated brands.

Solano said the team was building the “most culturally relevant chain in crypto” and stressed that the DAO experiment, while valuable in its early days, had outlived its usefulness.

“The DAO served its purpose, but the game has changed,” he wrote. “We’re no longer in the experimental phase.”

The DAO’s past failures included funding high-salary contributors with little output. Commentator @pressnfts posted, “Insane that there were people making $200k salaries and gutting the treasury, yet doing zero work.”

Solano also pointed to coordination failures and “governance participation that became easy to game” as reasons for the transition. He claimed that ApeCo would operate with strategic intent and professional oversight, providing clarity and structure.

Community Split or Realignment?

While many praised the initiative, not all voices were in agreement. Some users questioned how centralized the new ApeCo structure would become and whether it would truly represent community interests.

Still, the tone of the conversation on X and the proposal forum leaned heavily in favor of reform. Yuga Labs co-founder Wylie Aronow, known as Gordon Goner, supported the change, joking, “No words for how annoyed I am at Greg for making me google ‘cruft,’ but I support the f**k out of this.”

If approved, the AIP would authorize the orderly handover of DAO operations and the formation of ApeCo under Yuga Labs’ direction.

As of June 6, the ApeCoin token traded around $1.51, showing mild volatility in response to the news. Market participants are watching closely for the outcome of the vote, which could redefine the governance and future direction of one of the NFT sector’s most well-known brands.

Solano said the goal was to recapture the spirit and velocity of Yuga’s first year—when it was just him and Aronow building from scratch.

“We’ve made huge progress. But the biggest unlock would be getting ApeCoin rowing in the right direction,” he concluded.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.