ApeCoin DAO finds itself under fire or paying up to $75,000 per month to its leadership board. The DAO faces scrutiny for being out of touch with its community. Here’s everything you need to know.
- ApeCoin DAO faces issues for paying its leadership board salaries and fees of up to $75,000 per month. This has led to accusations of detachment from the community and hurting its reputation.
- ApeCoin and ApeCoin DAO operate away from Yuga Labs to avoid regulatory issues. DAOs like ApeCoin DAO aim to share leadership and decision-making among community members, with voting rights on proposals using the Ecosystem Fund.
- The response to the issue includes justifications from Yat Siu comparing salaries to industry standards. Additionally, the debate shows the importance of evaluating the value brought to the DAO and its community, shaping the future of the Web3 industry.
ApeCoin DAO Faces Backlash
Significantly, a large Web3 organization associated with ApeCoin, ApeCoin DAO, is under fire for its leadership board receiving monthly payments of up to $75,000. This extreme compensation has led to accusations of detachment from the community and poses a threat to its reputation.
Furthermore, the DAO’s secretary, Vulkan, recently shared an organizational chart on Twitter showing the salaries of the governance board. Moreover, this disclosure, particularly regarding the pay for certain positions like community forum moderators, has created significant criticism.
Notably, Web3 observers took to Twitter to express anger with the administration’s compensation structure. Satvik Sethi, an artist and former head of Mastercard’s Web3 arm, questioned the $8,000 monthly salary for moderators. This is something he considers it out of touch. Also, others voiced similar sentiments, highlighting a perceived disconnect from reality.
What is ApeCoin and ApeCoin DAO?
Initially, ApeCoin was introduced in 2022 as a crypto token by ApeCoin DAO to enhance culture, gaming, and commerce within the Bored Ape Yacht Club ecosystem. While closely related, ApeCoin and ApeCoin DAO operate away from Yuga Labs, the company behind Bored Ape Yacht Club. This is to avoid regulatory complications.
DAOs like ApeCoin DAO aim to share leadership and decision-making among community members. ApeCoin DAO members, who hold ApeCoin tokens, have voting rights on proposals using the Ecosystem Fund. Therefore, one aspect drawing problems is the discourse facilitation team established following a community vote in April.
What’s more, ApeCoin DAO receives support from the Ape Foundation, which includes an administrator and a special counsel. The foundation manages the community funds and offers financial backing for approved projects. In November 2022, three council members quit, leading to the election of new council members BoredApe G, Vera, and Gerry.
What Was the Response?
Responding to the issue, the chairman of Amimoca Brands, Yat Siu, justified the high pay on social media, comparing them to those of mid-cap public companies in the Web3 space. Furthermore, Siu argued that such compensation aligns with industry standards, stating that organizations pay accordingly for services and value.
Subsequently, the controversy surrounding pay has prompted a healthy debate on decentralization. Members of the Web3 community believe it is crucial to evaluate the value brought to the DAO and its community by individuals in their roles.
While the Web3 industry continues to discuss the practical implementation and ideal standards of decentralization and DAOs, these passionate debates shape the future of this rapidly evolving space.
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