Yuga Labs' Bold Move: Dismantling the ApeCoin DAO in a Shifting Crypto Landscape

Yuga Labs Aims to Reclaim Control of ApeCoin, Proposing to Disband DAO

In a bold move, the creators of the Bored Ape Yacht Club (BAYC) are seeking to take full control of the ApeCoin ecosystem. The proposal, outlined by Yuga Labs CEO and co-founder Greg Solano (aka Garga), aims to disband the existing ApeCoin DAO, eliminating all governance rights for APE token holders.

Solano's post on the ApeCoin forums cites the DAO's "sluggish, noisy, and often unserious governance theater" as the driving force behind this decision. He believes that too many resources have been devoted to "vanity proposals and low-impact initiatives," and it's time for ApeCoin to refocus on its core pillars: ApeChain, Bored Ape Yacht Club, and Otherside.

The proposed plan would create a new entity, ApeCo, which would be granted all assets held by the DAO or ApeCoin Foundation. This move would "supercharge the APE ecosystem by supporting high-quality builders and reinforcing three core pillars," according to Solano.

The "bold experiment" of the ApeCoin DAO was launched in 2022 at the peak of the Bored Ape frenzy, acting as the decentralized entity responsible for the ApeCoin (APE) token on the Ethereum blockchain. However, as the token price has fallen substantially, the DAO has faced criticism for funding proposals that failed to add value to the ecosystem or the BAYC brand.

If the drafted plan is approved, the ApeCoin DAO would be fully dissolved, and all prior ApeCoin Improvement Proposals (AIPs) would be nullified, with the exception of those that have executed AIP contracts. Additionally, it would terminate all working groups, delegated authorities, elections, and the ApeCoin forum.

Solano believes this move will create "decisive clarity" and "strategic focus" for the ApeCoin ecosystem, which aligns with Yuga Labs' recent efforts to refocus on its core BAYC collection, the ApeChain network, and the long-awaited Otherside metaverse game.

The early reception to the idea has been broadly positive, with community members and other Web3 builders expressing support for Yuga Labs' plan to take control of ApeCoin. However, the proposal will need to be reviewed by the ApeCoin DAO Special Council before it can be sent to a vote, following the existing governance rules.

As the crypto world watches this development unfold, the future of the ApeCoin ecosystem hangs in the balance, with Yuga Labs determined to steer it in a direction that aligns with its core vision and brand.