Aragon DAO Passes Proposal To Go Against Founding Team

Aragon DAO has passed two consecutive governance proposals to take and fund legal actions against DAO’s association members. 

The first proposal sought to take legal action against the Aragon Association which wanted to shut down the DAO’s native ANT token in exchange for offering ETH to members. The proposal passed with 100% support votes. While another proposal asking for funding of 300k USDC for the lawsuit has also passed with 62% votes in favor.

This is pretty crazyThe @AragonProject DAO has voted yes sue the Aragon team directly for the unfair redemption offerMight be the first time ever a dao pays to go legal on its own team?

— DCF GOD (@dcfgod) November 21, 2023

The proposal stated that the decision taken by Aragon Association is without a community vote and it is apparently for the association’s own benefit. 

“With an estimated 25-32% of holders not claiming, they would be keeping the remaining $50M+ for themselves after turning 275,000ETH at the start raised by investors into in this case just 60,000ETH returning to investors,” cites the proposal as Aragon Association decided to dissolve ANT token earlier this month. 

Following the major favoring votes, the funding of $300k is sent to Patagon Management LLC which will pursue legal action against Aragon Association. Patagon will produce bi-monthly reports on spending from the balance and it will be shared publicly. Furthermore, the lawsuit will be overseen by a committee of representatives of four members.

“The Aragon team have no basis to block this, any excuses they use are hollow. This has not stopped them from indirectly threatening Patagon as the enforcer of the DAO in this case, and further shows their desperation,” said Patagon on X.

The proposal also stated that other individuals would also be able to finance the lawsuit and they would receive funds back with 10% interest if Patagon wins the case. They will also share a 5% cut of the total funds to be handed back to token holders.

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2023-11-21 16:37