Aragon DAO votes to fund legal action against its founders

A decentralized autonomous group (DAO) is taking authorized motion in opposition to its founding crew after a call to dissolve its governing physique and distribute most of its belongings to the holders of their tokens. 

On Nov. 2, the crew behind Aragon introduced that it might be dissolving the Aragon Affiliation. The group stated it’s deploying the group’s treasury in order that holders of the ANT token can redeem Ether (ETH) in trade for his or her tokens. The replace will give again round $155 million in digital belongings to its stakeholders.

Citing varied causes, the crew behind Aragon shut down the ANT Token and dissolved its governing physique with out consulting the DAO. This has angered a faction in its neighborhood, which expressed sturdy dissatisfaction with the transfer.

That is fairly loopy

The @AragonProject DAO has voted sure sue the Aragon crew instantly for the unfair redemption provide

May be the primary time ever a dao pays to go authorized by itself crew? pic.twitter.com/bP27niQx1V

— DCF GOD (@dcfgod) November 21, 2023

On Nov. 21, the DAO voted to allocate 300,000 USD Coin (USDC) to Patagon Administration LLC, a Delaware-based firm owned by Diogenes Casares, to take authorized motion in opposition to Aragon. The agency will spearhead the negotiations and lawsuit in opposition to the Aragon crew. 

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In accordance with the proposal, this can be certain that “an affordable quantity of useless token funds are returned to those who have redeemed pro-rata and never taken away from these former tokenholders.”

The handed proposal additionally permits Patagon to keep up confidentiality relating to defending the authorized course of and to have the power to determine on a authorized technique. Nevertheless, all of Patagon’s monetary transactions associated to the case can be in public studies. Patagon will even retailer the funds in a pockets deal with and a checking account separate from the corporate’s enterprise accounts.

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