A decentralized autonomous organization (DAO) is taking legal action against its founding team after deciding to dissolve its governing body and distribute the majority of its assets to token holders.
On November 2, the team behind Aragon announced that it would be disbanding the Aragon Association. The organization said it is deploying the organization’s vault so that ANT token holders can redeem ether (ETH) in exchange for their tokens. This update will return approximately $155 million in digital assets to stakeholders.
The team behind Aragon shut down the ANT token for various reasons and dissolved its governing body without consulting the DAO. This angered a faction of the community who resented the move.
this is crazy
this @AragonProject The DAO has voted to directly sue the Aragon team for unfair redemption offers
Could this be the first time a DAO has paid to legitimize its team? pic.twitter.com/bP27niQx1V
— DCF God (@dcfgod) November 21, 2023
November 21, DAO voted Allocating $300,000 in tokens (USDC) to Patagon Management, a Delaware company owned by Diogenes Casares, to take legal action against Aragon. The company will lead negotiations and litigation against the Aragon team.
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According to the proposal, this would ensure “a reasonable amount of dead token funds are returned proportionately to those who have redeemed them, rather than being taken away from these former token holders.”
The passed proposal would also allow Patagon to maintain confidentiality while protecting legal proceedings and the ability to determine legal strategy. However, all of Patagon’s financial transactions related to the case will be released in public reports. Patagon will also hold funds in wallet addresses and bank accounts separate from the company’s business accounts.
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