Cardano (ada) 
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The DAO era for ApeCoin may be nearing its end as community members express growing support for transitioning to a more centralized structure called ApeCo. This proposed shift represents a significant change from the decentralized governance model that has defined the ApeCoin DAO so far.
The Proposal: Transitioning to ApeCo
At the heart of this transition is AIP-596, a proposal to sunset the ApeCoin DAO and transfer governance responsibilities to ApeCo, a Cayman Islands-based entity created by Yuga Labs. Greg “Garga” Solano, co-founder of Yuga Labs, argues that the DAO has become inefficient, describing it as “sluggish, noisy, and often unserious governance theater.”
“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.”
The new governance model proposed by Solano aims to streamline operations and focus resources on three core pillars: ApeChain, Bored Ape Yacht Club, and Otherside. By cutting through governance gridlock, ApeCo seeks to accelerate product development, improve funding initiatives, and ensure capital is used effectively.
How ApeCo Will Operate
ApeCo introduces a “governance-lite” model, replacing broad tokenholder voting with a more centralized leadership structure. The goal is to enable faster decision-making while maintaining existing commitments, such as staking contracts. According to Solano, this new approach will focus on “quality, impact, and alignment with the core of what ApeCoin is meant to power.”
The transition to ApeCo reflects an effort to overcome challenges that have plagued the DAO, including inefficiencies and a lack of impactful initiatives. By centralizing control, the proposal hopes to reinvigorate the ecosystem and better align with the project’s long-term vision.
Community Reactions: Support and Concerns
The proposal has sparked a mix of reactions within the ApeCoin community. Many members, including long-time contributors and AIP authors, have voiced strong support, framing the shift as a necessary evolution for the ecosystem. Comments such as “this is the perfect evolution” and “this is what is absolutely needed” reflect the optimism of many tokenholders.
However, not all feedback has been positive. Some community members raised questions about the implications of dissolving the DAO. Concerns include the fate of previously approved proposals, such as recent allocations or co-investment initiatives that remain unexecuted. Others questioned the rapid sequence of events leading to the proposal and its potential impact on decentralization optics.
“Not to doubt Yuga is one of the most successful pioneers in the NFT space, but if Yuga controls ApeCo, I’m here to worry. The ability of the Yuga team to take on another organization again is in doubt.”
Alternative suggestions have also emerged. Some community members proposed retaining a central foundation as a steward while sunsetting broad governance. This approach would use time-locked reserves and a refined investment policy instead of transitioning to an external company.
Balancing Centralization and Web3 Principles
Despite the concerns, supporters argue that the move to ApeCo aligns with web3 principles if approved democratically by tokenholders. Yat Siu, co-founder of Animoca Brands and an early participant in ApeCoin DAO, emphasized that adapting governance models is a natural response to changing conditions, particularly in the evolving regulatory environment.
“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.”
Siu also noted that Animoca Brands will continue supporting the ApeCoin ecosystem under the new model. The company remains a shareholder, a partner of Yuga Labs, and an active participant in governance. Siu expects Animoca to play a significant role in ApeCo moving forward.
The Path Forward
With over 98% of votes cast in favor of AIP-596 so far, the proposal appears to have strong community backing. The final vote remains open, but early results suggest a clear mandate for transitioning the ApeCoin DAO to ApeCo’s more centralized operational model.
This potential shift marks a pivotal moment for ApeCoin, signaling a move away from its experimental DAO phase toward a structure designed for faster growth and greater focus. The outcome of this transition will likely shape the future of the APE ecosystem for years to come.
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