ApeCoin (APE) holders are engaged in a debate on social media over the six-figure annual salaries awarded to members of the project’s decentralized autonomous organization’s (DAO) leadership and community council. The Ethereum-based token, launched in March 2022 as the native currency of the Bored Ape Yacht Club ecosystem, is governed by the ApeCoin DAO, composed of its holders.
The ApeCoin DAO operates with a semi-decentralized structure, with various roles established to ensure efficient governance. According to the project’s website, the Ape Foundation supports the governance process and handles administrative tasks, project management, and bookkeeping. The Ape Foundation is overseen by a Special Council tasked with managing DAO proposals and aligning with the community’s vision.
DAO members elect Special Council members annually. Notable individuals currently serving include Reddit co-founder Alexis Ohanian, Animoca Brands chairman Yat Siu, and other prominent figures in the Bored Ape community. Other roles, such as governance stewards and Special Council members, were scheduled for election later this month.
Controversy over Salaries
The debate arose when Vulkan, the ApeCoin secretary, shared an organizational chart outlining the DAO’s leadership structure and monthly salaries. The chart listed salaries ranging from $7,000 for the secretary to $75,000 for WebSlinger, the Cayman Islands administrator responsible for legal and compliance matters. The six-figure salaries awarded to Special Council members attracted particular attention.
A Special Council is a group of individuals who oversee the governance of a decentralized autonomous organization (DAO). They are responsible for managing proposals, ensuring they align with the community’s vision, and providing guidance and support to the DAO’s operations.
Critics argued that the salaries were excessive and questioned the value provided by the Special Council members. Some users compared their responsibilities to other DAOs, claiming they received significantly less compensation for similar roles.
Defenders maintained that the salaries were fair compensation for the demanding responsibilities and accountability associated with the role. They highlighted that the compensation was comparable to that of directors in public companies, given the legal and fiduciary duties involved.
In response to the backlash, Yat Siu emphasized the contributions of Special Council members to the ApeCoin community. He clarified that the compensation was intended to reflect the level of responsibility and liability carried by the role.
Proposals for Change
The controversy has prompted ApeCoin holders to propose changes to the Special Council salary structure. One proposal suggests a 50% reduction in salaries, while another calls for a “competency check” to ensure that only individuals actively contributing to the DAO are eligible for leadership positions.
ApeCoin representatives have not yet publicly commented on these proposals.
Market Performance and Future Developments
ApeCoin experienced significant growth upon its launch, primarily due to Bored Ape Yacht Club holders’ eligibility to claim APE tokens for each of their NFTs. Since then, the ApeCoin DAO has approved notable proposals, including establishing an NFT marketplace and allowing APE staking.
The coin’s market cap has recently declined, currently standing at $746.88 million. This represents a significant drop from its peak of $6.74 billion in April 2022.
The Bored Ape Gazette, a 24-hour news site funded by the DAO, continues to publish profiles of Special Council nominees ahead of the upcoming elections.
The ongoing debate over Special Council salaries highlights the challenges and complexities of governance in decentralized organizations. It remains to be seen how the ApeCoin community will resolve this issue and what future developments lie ahead for the project.