A decentralized autonomous group (DAO) is taking authorized motion in opposition to its founding group after a choice to dissolve its governing physique and distribute most of its property to the holders of their tokens.
On Nov. 2, the group behind Aragon introduced that it could be dissolving the Aragon Association. The group stated it’s deploying the group’s treasury in order that holders of the ANT token can redeem Ether (ETH) in alternate for his or her tokens. The replace will give again round $155 million in digital property to its stakeholders.
Citing varied causes, the group behind Aragon shut down the ANT Token and dissolved its governing physique with out consulting the DAO. This has angered a faction in its neighborhood, which expressed sturdy dissatisfaction with the transfer.
That is fairly loopy
The @AragonProject DAO has voted sure sue the Aragon group instantly for the unfair redemption provide
Could be the primary time ever a dao pays to go authorized by itself group? pic.twitter.com/bP27niQx1V
— DCF GOD (@dcfgod) November 21, 2023
On Nov. 21, the DAO voted to allocate 300,000 USD Coin (USDC) to Patagon Administration LLC, a Delaware-based firm owned by Diogenes Casares, to take authorized motion in opposition to Aragon. The agency will spearhead the negotiations and lawsuit in opposition to the Aragon group.
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In accordance with the proposal, this can be sure that “an inexpensive quantity of lifeless token funds are returned to those who have redeemed pro-rata and never taken away from these former tokenholders.”
The handed proposal additionally permits Patagon to keep up confidentiality in relation to defending the authorized course of and to have the power to determine on a authorized technique. Nevertheless, all of Patagon’s monetary transactions associated to the case shall be in public experiences. Patagon can even retailer the funds in a pockets deal with and a checking account separate from the corporate’s enterprise accounts.
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