Yuga Labs Moves to Dismantle ApeCoin DAO in Favor of Centralized Structure

In a bold move to reshape the future of ApeCoin, Yuga Labs has introduced a proposal that would dissolve the existing ApeCoin DAO and replace it with a streamlined management body called ApeCo.

The initiative, led by Yuga CEO Greg Solano, aims to eliminate what he sees as inefficiencies and lack of progress under the current decentralized governance model.

Solano argues that while the DAO played a valuable role in ApeCoin’s early days, it has since become bogged down by “governance theater” and wasteful initiatives. In his view, too much time and money have been spent on proposals that deliver little value to the broader ecosystem. “It’s time to sunset the DAO,” he posted on X, calling for a faster, more accountable structure to drive development.

Under the proposal, all governance rights held by tokenholders would be revoked. Existing AIPs (Ape Improvement Proposals), working groups, and DAO elections would be dissolved. Assets controlled by the DAO—including smart contracts, infrastructure, and intellectual property—would be transferred to the newly formed ApeCo.

ApeCo, as envisioned, would be created and run directly by Yuga Labs. It would prioritize funding for high-impact initiatives, particularly those tied to Yuga’s core projects like ApeChain, Bored Ape Yacht Club (BAYC), and the Otherside metaverse. The emphasis would shift toward efficiency, strategic alignment, and professional execution.

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Initial reactions from the ApeCoin community have been mixed, though many prominent voices support the proposed overhaul. Some see it as a necessary evolution, one that promises better leadership and clearer direction. “DAO fatigue is real,” wrote one member, praising the focus and structure promised by ApeCo.

Others, however, see the move as a power grab. Critics argue that dismantling the DAO undermines the community-first principles on which ApeCoin was built. One dissenting voice, Lanzer, called the proposal’s optics “damaging” and questioned the motives behind eliminating the DAO entirely.

Despite the controversy, the proposal has ignited serious conversation about the long-term governance of crypto ecosystems—and whether decentralization always serves innovation. As voting looms, the future of ApeCoin now hinges on whether the community favors collective governance or centralized leadership under Yuga’s banner.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.