Aragon Dissolves Association and Returns $155 Million in Digital Assets to Token Holders
A decentralized autonomous organization (DAO) known as Aragon is facing legal action from its founding team after a controversial decision to dissolve its governing body and distribute the majority of its assets to token holders. In a surprise announcement on November 2, the Aragon team revealed their plans to dissolve the Aragon Association, stating that holders of the ANT token would be able to redeem Ether (ETH) in exchange for their tokens. This move will see approximately $155 million in digital assets returned to stakeholders.
Community Outrage as Aragon Team Closes ANT Token and Dissolves Governing Body
The decision to close the ANT Token and dissolve the governing body was made by the Aragon team without consulting the DAO, leading to significant backlash from a faction within the community. This group expressed strong dissatisfaction with the move, prompting further action.
DAO Votes to Allocate $300,000 to Legal Action Against Aragon
On November 21, the DAO voted to allocate 300,000 USD Coin (USDC) to Patagon Management LLC, a Delaware-based company owned by Diogenes Casares, in order to pursue legal action against Aragon. Patagon will lead negotiations and file a lawsuit on behalf of the DAO. The proposal aims to ensure that a fair amount of dead token funds are returned to former tokenholders who have redeemed pro-rata.
Confidentiality and Transparency in Legal Proceedings
The approved proposal grants Patagon the ability to maintain confidentiality in order to protect the legal process and determine a legal strategy. However, all financial transactions related to the case will be publicly reported. Additionally, Patagon will store the allocated funds separately from their business accounts, using a wallet address and a dedicated bank account.
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