Aragon DAO votes to sue its founders after they unilaterally decided to dissolve its governing body and reallocate assets.
Members of Aragon DAO, a platform that allows developers to create and scale DAOs without coding, have decided to initiate legal proceedings against its founders. This action comes in response to the founders’ decision to dissolve the organization’s governance structure and reallocate the majority of its assets to its token holders, a move that was taken without the consensus of the DAO community.
The controversy began on November 2 when the Aragon team announced the dissolution of the Aragon Association, with the intention of distributing the organization’s funds to ANT token holders by allowing them to exchange their tokens for Ethereum. This plan involved the redistribution of approximately $155 million in digital assets.
The DAO community expressed significant dissatisfaction with the Aragon team’s unilateral decision to cancel the ANT token and dissolve the governing body, citing a lack of consultation and consideration of the opinions of the broader community.
In a decisive move on November 21, the DAO voted to allocate $300,000 in USD Coin to Patagon Management, a Delaware-based company. This funding is intended for legal actions against the founders of Aragón. Patagon Management’s role will be to lead the negotiations and manage the lawsuit on behalf of the DAO.
The core of the proposal is to ensure a fair distribution of the remaining funds from the defunct token. The goal is to ensure that those who have already redeemed their tokens receive a fair proportion of the remaining assets, rather than allowing these funds to be unfairly distributed or withheld from former token holders.
This case could set a precedent for how internal disputes within DAOs are resolved, especially in scenarios where the decisions of a few impact the community at large.
