ApeCoin community backs founder-led governance overhaul

The DAO era may be closing for ApeCoin, with community members signaling a cautious but clear desire to hand the reins to a new, more centralized structure called ApeCo.

ApeCoin DAO appears poised for a major shakeup as many members rally, though not without some hesitation, behind a plan from Yuga Labs’ Greg “Garga” Solano to potentially replace the current system with a more focused, founder-led model called ApeCo.

At its core, AIP-596 proposes sunsetting the ApeCoin DAO by ending tokenholder governance and transferring control to ApeCo, a Cayman-based entity created by Yuga Labs. The reason: the organization “has devolved into sluggish, noisy, and often unserious governance theater,” Solano writes.

“ApeCoin DAO was a bold experiment, but one born of a different era. What started with promise has devolved into sluggish, noisy, and often unserious governance theater. Too many resources have gone to vanity proposals and low-impact initiatives.”

Greg Solano

The new structure aims to “supercharge the APE ecosystem” by focusing resources on three key pillars: ApeChain, Bored Ape Yacht Club, and Otherside.

ApeCo is designed to cut through governance gridlock by replacing broad voting with a governance-lite model, featuring stronger leadership and faster decision-making. It plans to accelerate product development, raise the bar on funding quality, and focus capital on impact and alignment, all while maintaining existing commitments such as staking contracts.

By shifting operational control away from the DAO and into ApeCo, the proposal aims to focus on “quality, impact, and alignment with the core of what ApeCoin is meant to power,” according to Solano.

Still aligns with web3 principles

Animoca Brands, an early participant in the ApeCoin DAO, expressed understanding of the shift, with co-founder Yat Siu emphasizing that such decisions reflect the will of the community. In an interview with crypto.news, Siu noted that while Animoca deeply values decentralization and tokenholder rights, the move toward a centralized structure like ApeCo is still aligned with web3 principles if chosen democratically by tokenholders.

Across the DAO forum and social media, dozens of ApeCoin holders, including several long-time contributors and AIP authors, voiced approval. The dominant tone was one of relief and optimism, as many framed the shift as a necessary evolution for the ecosystem.

Still, not all responses were uncritical. Some questioned the implications of dissolving the DAO. Community member Frostyz asked what would happen to “approved AIPs, which never made anything,” whether recent allocations like the Banana Bill or acquired NFTs would be transferred to ApeCo, and whether unexecuted co-investment proposals, such as one from Animoca’s Yat Siu, would be cancelled.

When asked about Animoca’s involvement prior to the proposal’s release, Siu said the firm was given a heads-up but was not consulted in its development. The outcome, he reiterated, will ultimately be determined by ApeCoin holders through their votes.

‘Exit game’

Others voiced concern over the optics and rapid sequence of events, with Lanzer writing that the AIP is “bad optics for Yuga Labs and Garga. I personally have concerns about the confusing and fast sequence of events that led us here.”

LikKee.eth reiterated earlier concerns that the structure was unsustainable, pointing to frustrations such as needing a separate AIP just to update the official website with ApeChain links. He called the DAO “a throwaway of the VC exit game.”

“Not to doubt Yuga is one of the most successful pioneer in NFT’s space, but if Yuga are the controller of ApeCo, I’m here to worry. The ability of the Yuga team to take on another organisation again is in doubt as not a beautiful transcript in the acquisition of Cryptopunk, Meebits, Moonbirds, WENEW, Roar and building Otherside with studios, like Improbable, etc.”

LikKee.eth

Some offered alternative paths. One detailed proposal suggested sunsetting governance but retaining the foundation as a central steward, using a time-locked reserve and new investment policy rather than a full transition to an external company.

Still, these concerns were largely drowned out by vocal supporters as comments like “this is the perfect evolution,” “let’s make history — again,” and “this is what is absolutely needed” reflected the dominant mood.

On concerns around decentralization optics, Siu pointed out that ApeCoin DAO was created in a very different regulatory environment, particularly in the U.S., and that adapting governance models is a natural response to evolving conditions.

“In the case of ApeDAO, the regulatory environment and sentiment that prevailed during much of the last three years posed challenges to operations, and provided some important lessons that have been the topic of much discussion.”

Yat Siu

Siu said Animoca Brands will continue supporting the ApeCoin ecosystem under the new model. He noted that the company remains a shareholder, a partner of Yuga Labs, and an active participant in governance. He also expects Animoca to play a role in ApeCo going forward.

The final vote on Garga’s proposal remains open, but with over 98% of votes cast in favor so far, the active community appears to show strong support for sunsetting the DAO in favor of ApeCo’s more centralized operational model.