Yuga Labs CEO Greg Solano proposed a significant proposal on the 5th, suggesting the dissolution of the two-year-old ApeCoin DAO and transferring its assets to a new entity ApeCo directly controlled by Yuga Labs. The main goal is to address the low governance efficiency of the existing DAO and focus resources on core projects like ApeChain and Bored Ape Yacht Club.
Proposal Details and Background
Greg Solano proposed the Ape Improvement Proposal (AIP), aimed at addressing Yuga Labs' dissatisfaction with the current DAO governance efficiency. According to Coindesk's report on the 6th, Solano criticized the ApeCoin DAO's operation as:
"Slow, noisy, and often unserious governance drama"
And funding "exaggerated proposals and low-impact initiatives".
Solano believes that ApeCo, controlled by Yuga Labs and with a more streamlined structure, will be able to "eliminate deadlock" and focus on investing funds into "high-level projects" in the three pillars of ApeChain, Bored Ape Yacht Club, and Otherside.
If the proposal passes, ApeCo will first inject 11.25 million APE tokens (worth about $8.3 million) into the staking contract, reserve 10 million APE for legal and transition costs, and then receive all assets from the foundation's treasury, including tokens, domain names, and smart contracts. All existing governance powers, working groups, and future AIPs will be removed.
Potential Impact and Community Response
The proposal has sparked complex reactions within the community. Supporters believe it is necessary to revitalize the ecosystem, especially considering that some community members have grown tired of the existing DAO's operational efficiency. However, opponents are concerned about excessive centralization of power, which could potentially compromise the decentralization principles originally established by ApeCoin.
This proposal has a crucial impact on the future development of the ApeCoin ecosystem, with the final result depending on community voting. Currently, the proposal is in the "temperature check" stage, with an on-chain vote to follow.
