Yuga Labs Proposes Dissolution of ApeCoin DAO

Yuga Labs has proposed the dissolution of the ApeCoin DAO, suggesting the creation of a new structure to advance the APE token ecosystem.

Greg Solano, CEO of Yuga Labs, described the organization as a bold yet outdated experiment. He remarked that the promising initiative had turned into a “slow, noisy, and often unserious governance theatre.”

To preserve and enhance the DAO’s sole useful function—funding developers—Yuga Labs proposes replacing it with a new organization called ApeCo.

Resources will focus on developing three key areas of the ecosystem: the ApeChain blockchain, the Bored Ape Yacht Club NFT collection, and the Otherside metaverse. The company also plans to expand opportunities for “genuine” developers through grants with phased payouts and stricter oversight.

A user on X, known as OGDfarmer, stated that the DAO “was a laughing stock, a drag on the entire ecosystem, pillaged, slow, inefficient, and overly politicized from the start, with dishonest participants and extortionists everywhere.”

Seriously though, I’m so out of the Dao things that this might be stupid or unfeasable, but why not dissolve the Dao?

It’s been nothing but a joke, and a drag on the entire ecosystem, pillaged and slow and inefficient and overpoliticized since inception, with unaligned bad… pic.twitter.com/SSvMU5UWzh

— DFarmer (@OGDfarmer) June 1, 2025

He believes that Yuga Labs, under Solano’s leadership, will perform better.

If the proposal is accepted, the ApeCoin DAO will be liquidated. Token holders will lose all rights and powers related to governance and assets. Previous AIP will be annulled. Delegated bodies, working groups, and forums will also cease operations.

The new initiative by Yuga Labs has received mostly positive feedback on the ApeCoin forum. The proposal has been put to a vote, though it is intended to gauge community sentiment rather than serve as an official decision.

At the time of writing, APE is trading at $0.73 (+3.6% over the day), according to CoinGecko.

Back in May, Yuga Labs sold the rights to the CryptoPunks NFT collection to the non-profit organization The Infinite Node Foundation.