Decentralized Autonomous Organization (DAO) Aragon has made the decision to dissolve its board and distribute the majority of its crypto assets to token holders. Following this groundbreaking development in the blockchain sector, the founder of Aragon announced that legal action will be taken against the team. In addition, the team behind Aragon revealed that the activities of the Aragon Association will come to an end.
DAO Announces Legal Proceedings
The team stated that Aragon’s native token, ANT, had been distributed from the organization’s treasury in exchange for Ethereum. With this update, the DAO will return approximately $155 million worth of crypto assets to its stakeholders.
The team behind Aragon announced that all transactions involving ANT tokens have been suspended for various reasons, and the governing body has been dissolved without consulting the DAO community. This development has angered a segment of the community, and the dissatisfaction with this decision has been voiced by many.
On November 21, the DAO voted to allocate $300,000 worth of USDC tokens to Patagon Management, a Delaware-based company owned by Diogenes Casares, to initiate legal proceedings against Aragon officials. The firm emphasized that it will lead negotiations and the lawsuit against the Aragon team.
Controversial Decision Sparks Debate
According to the proposal made by the community, a reasonable amount of “dead token” funds will be proportionately refunded to the holders, and these assets will not be taken from the original token holders. The proposal accepted by the DAO also allows Patagon to protect the confidentiality of the legal process and make decisions regarding legal strategy.
Furthermore, all financial transactions related to the lawsuit will be publicly disclosed in Patagon’s reports. Patagon also stated that the funds will be kept in a separate wallet address and a separate bank account from the company’s commercial accounts. Following this process, the independence of many DAOs in the blockchain sector and the experiences they go through continue to attract attention, igniting significant debates within the crypto community.