- Yuga Labs proposes restructuring ApeCoin governance model.
- Assets worth $168M managed by ApeCo.
- Expected volatility in related crypto assets.
On June 5, 2025, Yuga Labs proposed dissolving ApeCoin DAO and transferring $168 million in assets to a new entity, ApeCo.
This move could reshape ApeCoin’s governance, impacting token valuations and investor sentiment.
Yuga Labs and the Transformation of ApeCoin
Yuga Labs, maker of Bored Ape Yacht Club, plans to dismantle ApeCoin DAO. The June proposal suggests transferring assets into a new management entity, ApeCo. This would end the DAO’s governance model.
The proposal criticizes the current model as inefficient. CEO Greg Solano stated,
“Too much time and money have been invested in ideas that do not move the project forward in any meaningful way”
. The plan involves major governance changes, affecting token-based voting, and dismantling existing DAO groups.
Investor Reactions and Market Implications
Investors anticipate market effects from the proposal. Previous governance changes led to volatility in similar tokens. Monitoring exchanges and DeFi applications is suggested for real-time insight. This reshuffle lacks immediate funding grants or large institutional backing. It’s seen as a cost-cutting move, aimed at enhancing operational efficiency without detailing financial backing from other sources.
Community and Regulatory Perspectives
Community reactions vary, focusing discussions on centralization and loss of token-holder influence. Regulatory bodies, like the SEC, haven’t commented, leaving legal implications uncertain. Expert analyses indicate that similar historic moves, such as in MakerDAO, led to significant price shifts. The impact on laws and technological frameworks remains speculative yet critical for stakeholders.