The Aragon DAO has overwhelmingly voted in favor of pursuing legal action against its founding team, allocating a substantial $300,000 for the cause. The decision unfolded in two separate votes; first, a unanimous agreement with 1.6 million governance tokens favored the proposal, and second, a narrower margin of 1.6 million tokens in favor versus 1 million against secured the funding.
This move by the DAO is a direct response to the Aragon Association’s recent decision to dissolve itself and discontinue its governance token, ANT, citing legal constraints and the need for a fresh start. The Association took this step without consulting the DAO, which sparked discontent among ANT token holders.
The DAO’s proposal highlights concerns that the Aragon Association might retain $50 million from the dissolution, prompting the need for legal intervention. The $300,000 funding, approved in stablecoin USDC, will be directed to Patagon Management LLC, an investment company owned by Diogenes Casares, to spearhead legal action and negotiations with the Aragon team.
Community Involvement in Aragon DAO’s Legal Pursuit
Patagon Management LLC has previously initiated legal proceedings against Wei “Max” Wu in connection with the Spartacus DAO, and its involvement adds weight to the DAO’s pursuit of justice. The proposal outlines that other individuals can contribute to financing the lawsuit, with the incentive of receiving their funds back plus 10% interest per year if the case prevails.
An oversight committee, composed of representatives from Arca, crypto trader DCF God, and pseudonymous individuals such as Wismerhill, Tedward, CM, Triangular, and Yakitori, will monitor the lawsuit. Notably, these individuals have prior experience dealing with DAOs and dispute resolutions.
This development follows previous controversies, including Aragon’s claims of an attack by the RFV Raiders, a group allegedly targeting DAOs for dissolution. The accusations pointed fingers at members like Avraham Eisenberg, who took responsibility for an attack on Mango Markets, suggesting a larger conspiracy within the crypto space.
Nevertheless, the cryptocurrency community awaits the outcome, recognizing the broader implications for decentralized autonomous organizations navigating the complexities of governance and restructuring.
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