Crypto Shakeup: Why Yuga Labs Wants to Scrap ApeCoin DAO for a New Ecosystem Powerhouse
Crypto markets are buzzing as one of the industry’s most recognizable NFT companies, Yuga Labs, signals a major shift for its flagship project, ApeCoin (APE). Yuga Labs CEO Greg Solano has proposed the dissolution of the ApeCoin DAO—marking one of the boldest moves yet in the world of blockchain governance.
The main keyword “crypto” headlines this transformation as Solano’s announcement points to a growing debate around the effectiveness of decentralized governance in high-value token ecosystems. On social platforms, Solano reported receiving “near-unanimous support” from the community, with traders strongly echoing the desire for change. The proposal, currently up for voting, calls for replacing the existing DAO with a leaner entity called ApeCo to “supercharge the APE ecosystem.”
On June 5, Solano formalized this plan by launching a detailed proposal on the ApeCoin community forum. The document, titled “Sunsetting the DAO and Launching ApeCo — A New Operating Model for ApeCoin,” is clear: The days of slow, contentious voting and unproductive proposals must end. Instead, ApeCo would focus on backing high-quality builders and reinforcing three essential pillars—ApeChain, Bored Ape Yacht Club, and Otherside. Expert commentary suggests this mirrors a broader trend across blockchain projects where DAOs face mounting criticism for inefficiency, prompting some leaders to push for more agile governance models.
[Price chart for Yuga Labs’ ApeCoin token in the past few days of trading, June 6, 2025 | Source: crypto.news]
Solano’s post also clarifies what’s at stake for token holders. If ApeCoin DAO is wound down, its assets—excluding funds earmarked for staking rewards and legal obligations—would flow to ApeCo, the new governance hub. It’s an audacious bet that fast, focused leadership can restore momentum to the APE ecosystem.
First established in March 2022, ApeCoin DAO was designed to let APE holders steer project strategy and funding. But as the broader DeFi and NFT markets matured, complaints over “vanity proposals” and resource misallocation increased. Notably, Yuga Labs has already realigned priorities, moving beloved NFT properties like CryptoPunks to outside organizations, underscoring its commitment to this new direction.
For investors and NFT enthusiasts, the stakes are high. The fate of APE, and possibly the blueprint for future crypto governance, hangs in the balance. By dissolving the DAO in favor of a more streamlined structure, Yuga Labs aims to adapt swiftly to market realities—something experts believe could start a trend among other large blockchain communities. To understand the evolution of staking and decentralized voting—key debates within this drama—check out our deep dive into what is staking in crypto and more on DAO structures in cryptocurrency trading for beginners.
With 130 community votes already submitted and heated discussion ongoing, all eyes now turn to ApeCoin’s next chapter. As the DeFi world continues to evolve, this shakeup could inspire a wave of DAO reform across the crypto sector.