Aragon DAO, a decentralized autonomous organization, has recently made significant decisions through voting processes and allocation of funding. The organization has passed two votes supporting a lawsuit against its founding team, providing $300,000 for the legal battle. This decision came after the Aragon Association’s independent move to dissolve itself and discontinue its governance token, ANT, without consulting the DAO. Concerns have arisen about the association potentially retaining $50 million, prompting the proposal for legal action.
Voting Results and Funding Decision
The voting process for the proposal received unanimous approval, with approximately 1.6 million governance tokens in favor. In a second vote regarding funding, 1.6 million tokens favored the allocation of funds, while 1 million tokens were against. These votes demonstrate the overwhelming support within Aragon DAO for the legal action against the founding team.
Aims of the Lawsuit
The proposed lawsuit aims to challenge the decision made by the Aragon Association without involving the DAO. The focus is on holding responsible members of the association accountable and ensuring the return of investor funds. There are concerns about the association’s new undisclosed company potentially absorbing the funds. The intention is to safeguard the interests of token holders and prevent any monetary loss.
In order to proceed with legal action and negotiation, Aragon DAO has allocated $300,000 in funding to Patagon Management LLC, an investment company owned by Diogenes Casares. Patagon has previously pursued legal action in a similar context, highlighting their expertise in handling such cases. The funds have been transferred to Patagon’s wallet in the stablecoin USDC.
Additionally, the proposal allows other individuals to contribute financially to the lawsuit. If the case is successful, these contributors will receive their funds back with a 10% annual interest rate and a 5% share of the total funds returned to token holders. However, if the case is lost, they will not receive any compensation.
Oversight Committee
To ensure transparency and monitor the progress of the lawsuit, an oversight committee has been established. The committee comprises representatives from investment firm Arca, crypto trader DCF God, and pseudonymous individuals known as Wismerhill, Tedward, CM, Triangular, and Yakitori. Their role is to provide guidance and uphold the interests of the Aragon DAO community throughout the legal proceedings.
It is important to note that the Aragon Association has stated that the recent vote may not fully represent the Aragon community. They argue that a significant number of token holders have already redeemed their tokens, implying that the voting outcomes might not be entirely reflective of the community’s sentiment.
In response, the Aragon core team, clarifies that they have no decision-making power in the association’s dissolution as they are separate entities. This clarification reinforces the autonomy and independent decision-making of the Aragon DAO itself.
Furthermore, individuals involved in the potential lawsuit against Aragon and serving on the oversight committee have been engaged in disputes and dealings with DAOs. For instance, the RFV Raiders, a group of crypto activists, have been associated with efforts to shut down DAOs and distribute their treasuries among token holders. Moreover, Aragon has suggested that Avraham Eisenberg, who took responsibility for the attack on Mango Markets, may have been part of this group.
