Aragon, an open-source framework designed to launch decentralized autonomous organizations (DAOs), has scrapped plans to give its native Aragon (ANT) token holders voting rights to the organization's future direction.
The Aragon Association, the Swiss organization that oversees Aragon's governance, said in a May 9 tweet that Thailand was fulfilling its “fiduciary duty” to secure its financial and overall mission by “repurposing the Aragon DAO as part of a new grants program.” . "
The decision comes after the recently launched Aragon DAO was 51% attacked by a group called the Raiders for Risk-Free Value (RFV), which sought to manipulate the use of ANT as a means of financial gain. According to an Aragon blog post, The RFV raid was related to the recent Rook DAO attack and liquidation that occurred in early April. Aragon claimed the raiders were activist investors from asset management firm Arca Capital Management, who called themselves “crypto vulnerabilities.” The blog post sheds further light on the Controversial decision: "The clear mission of establishing Aragon Treasury is to support builders in advancing decentralized governance infrastructure."
Aragon explained that because Swiss regulations require it to be used for these stated purposes, its fiduciary duty compels it to “ensure that these funds are not taken by those who seek to obtain them for their own financial gain.” “There is clear evidence that the entities involved in the Aragon attacks are pursuing this objective." A Twitter thread from May 9 detailed the current state of the Aragon DAO, explaining that Aragon transferred an initial payment of $300,000 in coins to Aragon Grants DAO. Aragon claims that funds currently held by the DAO will remain on-chain and be managed by wrapped ANT (wANT) holders.
On May 2, Arca Capital wrote an open letter responding to earlier disagreements that some stakeholders were banned from Aragon's Discord, which partially explains the recent 51% “attack.”
Arca claimed that there was a "necessity for token holders to find creative solutions that return value to the tokens while allowing Aragon to continue to build the important DAO public product," noting that this would not happen until "the transfer of funds proceeds further. " start.
Aragon's decision to retool its DAO comes just over a month after the Aragon team announced further collaboration with popular Ethereum scaling organization Polygon Labs. Following the update, Aragon's native ANT token fell more than 4 percent in price, from $2. 95 to $2.83. At the time of publication, the price of ANT is up 2% over the past 24 hours, according to CoinGecko data.
