- Yuga Labs’ proposal to replace ApeCoin with ApreCo aims to provide clear governance, focused resource allocation, and streamlined funding for projects.
- The ApeCoin DAO has faced criticism for being slow, inefficient, and manipulated by conflicting interests.
Yuga Labs, Bored Ape Yacht Club’s creator, is proposing to change how ApeCoin is managed, suggesting to eliminate the existing DAO and set up “ApeCo” instead. With this, the company wants to respond to the growing concerns about the government of ApeCoin, which is linked to Bored Ape NFTs on Ethereum.
Yuga Labs Proposes Replacing Apecoin with “ApeCo”
In a statement on Thursday, Yuga Labs CEO Greg Solano described the DAO as an experiment stemming from the past version of the cryptocurrency world. Even though he admitted it had been promising, he stated that the DAO had failed to pick a clear path and had become more upsetting and toxic than helpful.
He suggested that control over ApeCoin’s development should be given over to the newly suggested entity called ApeCo. The goal is to provide developers with clear governance outlines and improved methods for getting funding. Under the plan, some grants are tied to specific objectives, ensuring that support is directed only to projects that benefit the environment.
Three main areas of interest were recognized under the new model: ApeChain, Bored Ape Yacht Club (BAYC), and Otherside, which is Yuga’s metaverse project. Solano wants to focus resources more specifically on these main areas, rather than sending them everywhere through community voting and loosely put-together forums.
Launched in 2022, ApeCoin DAO was intended to function as an independent entity that would make choices for the community in a decentralized way. Although the DAO was a separate entity, it kept playing a key role in Yuga’s NFT work. With time, many came to believe that the DAO was too dysfunctional, inefficient, and was even being manipulated by people whose interests conflicted.
Constant Criticism On Apecoin DAO
Users have time and again criticized the Apecoin DAO. One vocal critic on X described the DAO as “slow,” “inefficient,” and “overpoliticized.” They added that actors had compromised the DAO structure with conflicting motives. However, the same user expressed optimistic views that Yuga Labs could lead the project better.
If implemented, Yuga’s proposal would put a stop to all activities in the DAO. Any benefits related to governance that ApeCoin token holders once had would be taken away. Some of the steps include nullifying all previous ApeCoin Improvement Proposals (AIPs), dismissing appointed working groups, and closing the DAO’s forums and voting systems.
People in the ApeCoin forum are discussing the transition to ApeCo, and they are expressing mostly positive views. Still, the aim of this vote is to understand community attitudes rather than initiating official policies.
Lately, Yuga Labs has chosen to streamline itself by selling off CryptoPunks, Moonbirds, and Meebits. Looks like the company is prioritizing its main projects since ApeCoin, which peaked at $95, has lost more than 95% and is now down to around $0.70.
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