Yuga Labs has proposed dissolving the ApeCoin DAO and changing it with a brand new governing physique, ApeCo. This could mark a decisive shift within the administration construction of one in all Web3’s most recognizable token communities.
Filed as an AIP proposal on June 5, the plan would sundown the DAO and switch all main belongings, together with treasury funds, IP rights, sensible contracts, and administrative operations, to a newly shaped company entity led by Yuga.
The proposal arrives amid rising dissatisfaction with the DAO’s efficiency. Greg Solano, co-founder of Yuga Labs, described the group as having change into “sluggish, noisy and infrequently unserious,” declaring “it’s time for ApeCoin to sundown the DAO and get again to profitable.”
In a publish on X, Solano argued that “folks need to kill the ApeCoin DAO” and referred to as for a “leaner, sooner org to take the reins.”
The envisioned transition would entail migrating the DAO’s belongings, which embrace roughly 169 million APE tokens at the moment valued at over $168 million, into ApeCo’s management. If permitted, ApeCo would assume full duty for managing the grant program, directing ApeChain growth, and overseeing key model initiatives related to the Bored Ape Yacht Membership ecosystem.
ApeCoin DAO was launched in March 2022 to steward the community-driven evolution of the Ape ecosystem by means of decentralized governance. Nevertheless, the DAO’s efficiency has drawn mounting criticism from core stakeholders, together with Yuga, significantly round low voter engagement and operational stagnation.
The ApeCo proposal builds on an earlier governance revamp permitted in January by means of AIP-582, which moved ApeCoin governance on-chain through ApeChain with 93% help.
That measure shifted the majority of the treasury into the ApeChain ecosystem, however the brand new proposal successfully renders that effort moot by dissolving the DAO fully and centralizing governance beneath a brand new authorized entity.
Apes united?
Neighborhood response has primarily been supportive within the early phases, with most discussion board feedback indicating approval. Some dissenting voices stay, together with DAO contributor Lanzer, who rejected the declare that the DAO has failed and warned of reputational injury from dissolving the construction altogether.
If enacted, this might represent probably the most sweeping rollbacks of a DAO to founder-led management in latest crypto historical past. The implications prolong past the Ape ecosystem, elevating renewed scrutiny on the long-term viability of token-holder governance in Web3.
The transfer additionally comes on the heels of the SEC’s choice in March to shut its investigation into Yuga’s NFT choices with out urgent expenses, eradicating one regulatory overhang as the corporate reasserts management over its ecosystem.
The AIP stays within the Thought stage and would require full approval earlier than implementation by means of the DAO voting course of. Giant token holders, together with main enterprise backers and ecosystem companions, retain the flexibility to amend or reject the proposal.
Ought to it cross, the operational logistics of transitioning sensible contract possession, treasury administration, and grant disbursements will change into speedy focal factors.
Solano’s framing of the DAO’s shortcomings illustrates the broader sentiment that, whereas aspirational, decentralized governance could battle to help fast-moving model and protocol growth.
ApeCo, as proposed, would function with a smaller, professionalized construction centered on the execution and strategic progress of the Ape ecosystem’s belongings, together with Otherside and ApeChain.
The transition would mark a foundational shift in how one in all crypto’s most outstanding communities governs its capital and IP.
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