In a move that has sent ripples through the Web3 community, Yuga Labs CEO Greg Solano has proposed dismantling the ApeCoin DAO and replacing it with a new entity named ApeCo. This proposal, known as AIP-596, marks a significant shift in the governance structure of the ApeCoin ecosystem.
The ApeCoin DAO was established in 2022 to decentralize governance and empower the community in decision-making processes. However, over time, the DAO has faced criticism for inefficiencies and lack of focus. Solano described the current governance system as “sluggish, noisy, and often unserious governance theater,” attributing it to vanity proposals and low-impact initiatives that have hindered progress.
ApeCo aims to address these issues by streamlining operations and focusing on high-impact projects. The new entity would concentrate on three core pillars: ApeChain, Bored Ape Yacht Club (BAYC), and Otherside. By doing so, Yuga Labs intends to eliminate gridlock and direct resources toward initiatives that align with the long-term vision of the ApeCoin ecosystem.
This proposal requires a formal vote to approve the transition, which, if successful, would end the current NFT-focused governance structure. Stakeholders are encouraged to participate in the upcoming vote and engage in discussions to shape the future of the ApeCoin ecosystem.
The Rise and Fall of ApeCoin DAO
In March 2022, ApeCoin was launched as an ERC-20 token on the Ethereum blockchain, marking the inception of the ApeCoin DAO. This decentralized autonomous organization was designed to empower the community by allowing ApeCoin holders to participate in governance decisions, such as voting on proposals and allocating the ecosystem fund. The DAO’s creation was a significant step in the evolution of the Bored Ape Yacht Club (BAYC) and its affiliated projects, aiming to foster a decentralized and community-driven ecosystem.
However, despite the initial enthusiasm and the promise of decentralized governance, the ApeCoin DAO soon encountered several challenges that hindered its effectiveness. One of the primary issues was the inefficiency in decision-making processes. Proposals often faced delays, and the voting system became bogged down by low participation rates and a lack of quorum, leading to stagnation in project development.
Furthermore, the DAO’s structure and operations came under scrutiny. Critics pointed out that the governance model, while theoretically decentralized, was susceptible to manipulation by large token holders and lacked the necessary checks and balances to ensure fair representation. This led to concerns about centralization within the DAO, undermining the very principles it was meant to uphold.
The allocation of funds also became a contentious issue. There were instances where significant resources were directed towards initiatives that did not align with the community’s interests or the broader goals of the ecosystem. This mismanagement of funds further eroded trust in the DAO’s ability to govern effectively.
In response to these challenges, Yuga Labs, the parent company behind BAYC, proposed the dissolution of the ApeCoin DAO. CEO Greg Solano described the DAO as “sluggish, noisy, and often unserious governance theater,” attributing its inefficiencies to vanity proposals and low-impact initiatives. The proposal aimed to replace the DAO with a new entity, ApeCo, to streamline operations and refocus efforts on core projects.
The decision to dismantle the ApeCoin DAO was met with mixed reactions from the community. While some welcomed the move as a necessary step towards revitalizing the ecosystem, others expressed concerns about the centralization of power and the potential loss of the decentralized ethos that the DAO was intended to represent. The debate highlighted the complexities and challenges of implementing decentralized governance in rapidly evolving ecosystems.
As the ApeCoin DAO phase concludes, the transition to ApeCo marks a pivotal moment in the evolution of the ApeCoin ecosystem. The lessons learned from the DAO’s shortcomings will inform the development of ApeCo, with an emphasis on efficiency, accountability, and alignment with the community’s interests. The future of the ecosystem hinges on the successful implementation of this new governance model and its ability to foster innovation and growth in a decentralized manner.
Enter ApeCo: A New Governance Model
In June 2025, the ApeCoin community voted overwhelmingly in favor of a transformative proposal—AIP-596, which marked the end of the ApeCoin DAO and the birth of a new entity, ApeCo. With 99.66% approval, the transition was a decisive move toward a more streamlined and focused governance structure.
The ApeCoin DAO, established to decentralize governance and empower the community, faced several challenges over time. Inefficiencies in decision-making, lack of accountability, and operational hurdles became major concerns. The proposal, spearheaded by Yuga Labs CEO Greg Solano, described the DAO as “sluggish, noisy, and often unserious governance theater,” pointing to vanity proposals and low-impact initiatives as primary reasons for the DAO’s dysfunction.
ApeCo was conceived as a centralized entity that would take over the governance and operational responsibilities from the ApeCoin DAO. Unlike the decentralized model of the DAO, ApeCo’s goal was to provide a more focused and efficient governance structure.
The primary objectives of ApeCo include streamlining operations, enhancing accountability, and concentrating resources on key initiatives such as ApeChain, Bored Ape Yacht Club (BAYC), and Otherside. The transition involves dissolving the ApeCoin DAO, terminating tokenholder governance rights, and nullifying prior proposals. All assets from the DAO, including ApeCoin tokens, intellectual property, and infrastructure, will be transferred to ApeCo.
The proposal was met with mixed reactions within the community. While some members supported the move, viewing it as a necessary step to address the DAO’s inefficiencies, others expressed concerns about the centralization of power and the potential loss of decentralized governance principles. A formal vote was required to approve the transition, with the final outcome shaping the future governance structure of the ApeCoin ecosystem.
As ApeCo begins its operations, its ability to balance centralized decision-making with decentralized community engagement will be crucial. The success of this new governance model could set a precedent for other projects facing similar challenges in decentralized governance.
Financial Implications and Asset Transition
The dissolution of the ApeCoin DAO and the establishment of ApeCo represent a significant financial and operational shift within the ApeCoin ecosystem. This transition involves the reallocation of substantial assets and the restructuring of governance mechanisms to enhance efficiency and focus.
Under the approved proposal AIP-596, the ApeCoin DAO’s assets, including approximately 169 million APE tokens—valued at over $168 million as of June 2025—will be transferred to ApeCo. This consolidation aims to streamline operations and direct resources toward high-impact initiatives. The transition plan specifies the following allocations:
– Staking Commitment: Fully fund the ApeCoin staking contract with approximately 11.25 million APE tokens, ensuring continued rewards for stakers.
– Obligations & Transition Costs: Reserve 10 million APE tokens for legal, contractual, and administrative expenses associated with the transition.
– Remaining Assets: Transfer all other assets, including APE tokens, fiat/digital currencies, intellectual property, smart contracts, domains, and technical infrastructure, to ApeCo.
The dissolution of the ApeCoin DAO entails the termination of its governance system, including the nullification of all prior Ape Improvement Proposals (AIPs), the cessation of tokenholder governance rights, and the dissolution of working groups and elections. This move aims to eliminate inefficiencies and refocus efforts on core projects.
ApeCo will concentrate on three primary pillars: ApeChain, the Bored Ape Yacht Club (BAYC), and Otherside. By centralizing decision-making, ApeCo seeks to accelerate product development, eliminate governance gridlock, and reinvigorate belief in the long-term utility and cultural significance of ApeCoin.
The financial implications of transitioning from the ApeCoin DAO to ApeCo are profound, involving the reallocation of significant assets and a shift in governance structure. This strategic move aims to enhance operational efficiency and focus on key initiatives, positioning the ApeCoin ecosystem for sustained growth and innovation.
Community Response and Voting Outcome
In June 2025, ApeCoin DAO underwent a significant transformation with the approval of proposal AIP-596, titled “Sunsetting the DAO and Launching ApeCo — A New Operating Model for ApeCoin.” This proposal aimed to dissolve the existing DAO structure and establish ApeCo, a new entity led by Yuga Labs, to oversee the ApeCoin ecosystem’s future development.
The voting process for AIP-596 concluded with an overwhelming approval rate of 99.66%. Approximately 0.32% of participants voted against the proposal, and 0.01% abstained. This decisive outcome reflected a strong consensus among the community members regarding the need for a governance overhaul.
Over 3,200 unique wallets participated in the vote, casting a combined total of 46.6 million APE tokens in favor of the proposal. This level of engagement underscored the community’s active involvement and vested interest in shaping the ecosystem’s governance.
With the approval of AIP-596, all previous governance structures, including working groups and elections, were officially dissolved. The ApeCoin DAO’s assets and responsibilities were transferred to ApeCo, which is now tasked with steering the ecosystem forward. ApeCo’s leadership comprises Cameron Kates, the current Executive Director of the Ape Foundation, along with other foundation members and the Banana Bill team.
The proposal to replace the ApeCoin DAO with ApeCo has sparked discussions within the community. While some members support the move, viewing it as a necessary step to address the DAO’s challenges, others express concerns about the centralization of power and the potential loss of decentralized governance principles. A formal vote was required to approve the transition, and the outcome will determine the future governance structure of the ApeCoin ecosystem.
As ApeCo begins its operations, the community’s continued involvement and feedback will be crucial in ensuring that the new governance structure meets the evolving needs and aspirations of the ApeCoin ecosystem.
Strategic Focus Areas for ApeCo
ApeCo, the newly established entity succeeding the ApeCoin DAO, is poised to realign the ApeCoin ecosystem by concentrating on three pivotal areas: ApeChain, the Bored Ape Yacht Club (BAYC), and Otherside. This strategic focus aims to streamline operations, enhance product development, and reinforce the cultural significance of the ApeCoin brand.
ApeChain: Building the Most Culturally Relevant Blockchain
ApeCo envisions ApeChain as a blockchain that transcends traditional functionalities by embedding cultural relevance at its core. The goal is to create a platform that not only supports decentralized applications but also resonates with the community’s identity and values. By fostering an ecosystem where developers and users are intrinsically connected to the chain’s ethos, ApeCo aims to establish ApeChain as a leader in both technological innovation and cultural impact.
Bored Ape Yacht Club (BAYC): Expanding the Iconic Brand
BAYC stands as a testament to the fusion of art, culture, and technology. Under ApeCo’s stewardship, the focus will be on expanding the BAYC brand through strategic partnerships, exclusive events, and collaborations that enhance its status as a cultural icon. By leveraging the community’s passion and creativity, ApeCo seeks to amplify BAYC’s influence and ensure its continued relevance in the evolving digital landscape.
Otherside: Innovating the Metaverse Experience
Otherside represents ApeCo’s foray into the metaverse, aiming to create an immersive virtual world that offers unique experiences to its users. The strategic focus will be on developing interactive environments, integrating blockchain technology for ownership and scarcity, and fostering a vibrant community. By prioritizing user engagement and innovative design, ApeCo plans to position Otherside as a leading destination in the metaverse space.
ApeCo’s strategic focus on ApeChain, BAYC, and Otherside reflects a commitment to consolidating resources and efforts towards areas that promise the most significant impact. By aligning with the community’s values and aspirations, ApeCo aims to drive the ApeCoin ecosystem towards a future characterized by innovation, cultural relevance, and community engagement.
Potential Risks and Rewards
The transition from the ApeCoin DAO to ApeCo, formalized through the approval of AIP-596, introduces a paradigm shift in the governance and operational structure of the ApeCoin ecosystem. While this move aims to address existing inefficiencies, it also presents a spectrum of potential risks and rewards that stakeholders must carefully consider.
Potential Rewards
1. Enhanced Operational Efficiency: By consolidating decision-making authority, ApeCo can expedite processes and allocate resources more swiftly, potentially accelerating the development of key initiatives such as ApeChain, Bored Ape Yacht Club (BAYC), and Otherside.
2. Focused Strategic Direction: ApeCo’s centralized structure allows for a unified vision and strategy, minimizing the fragmentation that can occur in decentralized governance models. This alignment can lead to more cohesive and impactful project execution.
3. Attraction of Institutional Investment: A more structured and professional entity may appeal to institutional investors seeking stability and clear governance frameworks, potentially increasing capital influx into the ecosystem.
Potential Risks
1. Loss of Community Trust: The dissolution of the DAO and the removal of tokenholder governance rights may alienate community members who valued the decentralized ethos, leading to a decline in engagement and support.
2. Centralization of Power: Concentrating control within ApeCo could lead to concerns about decision-making becoming opaque or misaligned with the broader community’s interests, potentially stifling innovation and diversity of thought.
3. Regulatory Scrutiny: The shift towards a centralized model may attract increased attention from regulatory bodies, especially if the new structure resembles traditional corporate entities, raising questions about compliance and oversight.
The establishment of ApeCo marks a significant evolution in the ApeCoin ecosystem’s governance. While the move promises increased efficiency and strategic focus, it also carries risks related to community dynamics and regulatory considerations. Stakeholders must weigh these factors to navigate the transition effectively and ensure the long-term success and integrity of the ecosystem.
Pivotal Moment for ApeCoin
The approval of AIP-596, with an overwhelming 99.66% vote in favor, marks a transformative shift in the ApeCoin ecosystem. This decisive action reflects the community’s desire for a more efficient and focused governance model. ApeCo, the new entity established by Yuga Labs, is poised to lead the ecosystem with a clear strategic direction, concentrating efforts on ApeChain, the Bored Ape Yacht Club (BAYC), and Otherside. Under the leadership of Cameron Kates and the Ape Foundation team, ApeCo aims to streamline operations, accelerate product development, and enhance the cultural relevance of the ApeCoin ecosystem.
While the transition signifies a move towards a more centralized structure, it is a pragmatic evolution in the Web3 space, where agility and accountability are paramount. The success of ApeCo will depend on its ability to balance centralized execution with decentralized oversight, ensuring that the community’s interests remain at the forefront. As ApeCo embarks on this new chapter, the broader Web3 community will be watching closely, as this model could set a precedent for other projects navigating the complexities of governance and scalability in the decentralized world.
