Yuga Labs, the creative powerhouse behind the iconic Bored Ape Yacht Club, is shaking things up with a bold move. On June 6, 2025, Greg Solano, Yuga Labs’ CEO, announced plans to replace the beleaguered ApeCoin DAO with a fresh entity known as ApeCo. This strategic shift aims to streamline governance and inject renewed vitality into the ApeCoin ecosystem, which many insiders have deemed sluggish and inefficient.
ApeCoin’s Governance Woes
The ApeCoin DAO, once a promising beacon for decentralized governance, has been struggling. Critics, including Solano himself, have described it as a “slow, noisy, unserious governance theater.” This sentiment isn’t entirely unfounded. Many participants have voiced frustrations over the DAO’s cumbersome decision-making processes and lack of actionable outcomes. It’s not just about governance fatigue—it’s about the urgency to adapt in a rapidly evolving market.
David Kim, a blockchain analyst at Crypto Insight, commented, “ApeCoin’s governance system was ambitious, but the execution left much to be desired. The transition to ApeCo could be the rejuvenation needed to keep pace with competitors.”
Enter ApeCo: A New Dawn
ApeCo is envisioned as a more agile and dynamic alternative. While details remain sparse, insiders suggest that it will focus on reducing bureaucratic bottlenecks and fostering a more inclusive and responsive environment. The aim is to empower stakeholders with greater decision-making latitude, potentially attracting new investors.
Here’s the catch: replacing a DAO isn’t straightforward. DAOs are, by nature, decentralized—untangling them requires finesse. Solano acknowledged the challenges, stating, “Transitioning from a DAO to a more structured entity like ApeCo won’t happen overnight. We’re committed to maintaining community engagement throughout this process.”
The move aligns with a broader trend in the crypto sphere where DAOs are facing scrutiny. As the market matures, there’s a growing demand for governance models that balance decentralization with efficiency. ApeCo seems poised to strike that balance. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Historical Context and Market Trends
The Bored Ape Yacht Club skyrocketed to fame in 2021, capturing the imagination of NFT enthusiasts worldwide. Its success paved the way for the launch of ApeCoin, a token that promised to revolutionize governance in the NFT domain. However, as the novelty wore off, cracks in the DAO’s foundation began to show.
Many DAOs launched during the NFT boom have faced similar hurdles. The challenge lies in maintaining the democratic ethos while ensuring effective governance. ApeCoin’s struggles are a microcosm of a larger debate within the crypto community: how to best manage decentralized networks. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
According to Emily Tran, a crypto market strategist, “The shift from DAO to a structured entity like ApeCo isn’t just a Yuga Labs story—it’s reflective of an industry grappling with its own governance paradigms.”
Looking Ahead: Opportunities and Questions
The introduction of ApeCo is more than just a structural change; it’s a statement of intent. Yuga Labs is clearly not content with resting on its laurels. The move signals a readiness to evolve and adapt—a necessity in the volatile world of cryptocurrencies and NFTs.
Yet, this raises questions about the future of decentralization. Can structured governance coexist with the decentralized ethos that cryptocurrencies champion? Or does this signify a shift towards more centralized control in the crypto space?
As ApeCo takes shape, stakeholders and observers alike will be watching closely. There’s a palpable curiosity about how this new entity will function and, perhaps more importantly, if it can deliver on its promises. The crypto world is no stranger to bold moves and ambitious projects, but the execution, as always, remains key.
In the coming months, Yuga Labs’ strategy will unfold, offering insights into the evolving landscape of NFT governance. One thing’s for sure—ApeCo will be a venture to watch, potentially setting a precedent for others in the industry. As Solano aptly put it, “We’re not just building a token; we’re building a community.” And with that, the next chapter in the Bored Ape saga begins.
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This article is based on: Yuga Labs looks to replace ‘unserious’ ApeCoin DAO with new ApeCo entity
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
