Aragon Association to Dissolve, Distributing $155M in Ether to Token Holders
Summary:
The Aragon Association, which manages aragonOS software, has announced its dissolution and plans to distribute its assets, approximately $155 million in Ether (ETH), to token holders. The disbandment is due to bureaucratic complexity, stakeholder conflicts, and failed governance modifications, among other tensions. The team intends to restructure as a company focused on developing Aragon products and set up a "Product Council" for strategic decision-making. They also plan to allocate $11 million to the Aragon Shield Foundation to fulfill existing obligations and protect against regulatory uncertainty.
The Aragon Association, the managerial entity for the aragonOS software, is set to disband and will transfer the majority of its assets to token holders, as stated in a Nov. 2 blog post. As part of the dissolution process, the Association will reclaim 86,343 Ether (ETH) - equivalent to $155 million in current dollar rates - from its financial reserves and pass this onto token holders. This signifies an important development for all engaged stakeholders in the @AragonProject, as the association migrates to a more product-oriented structure.
The transaction will be executed using a smart automated contract scheme on the Ethereum blockchain. Owning to this arrangement, all Aragon (ANT) token holders will be eligible for claiming 0.0025376 ETH (priced at $4.57 presently) for each ANT submitted for redemption. Once all collected tokens have been redeemed, the association will accordingly terminate all remaining ANT embedded in the contract and subsequently dissolve. Following this point, ANT will no longer possess functional capacity.
Meanwhile, $11 million sourced from the company's treasury fund will be allocated to the Aragon Shield Foundation to meet any outstanding financial commitments and provide a safeguard against potential regulatory uncertainties. The team thereby aims to refashion itself into a company-oriented model, dedicated to persisting on the development of Aragon-specific products. Moreover, a 'Product Council' will be instituted to facilitate the strategic decision-making regarding product creation.
Aragon engages in the development of aragonOS, an assortment of programming tools facilitating the creation of decentralized, self-governed organizations (DAOs). It also pioneered the Aragon App, a platform that empowers programmers to create DAOs without any coding necessity.
In the aftermath of burdening bureaucratic constraints, conflicting stakeholder interests and unsuccessful governance amendments escalating project tensions, the Aragon Association has conceded to irreparable difficulties in maintaining operations in the face of these challenges. The management attempted to salvage the association by rapidly vesting treasury control to ANT holders, but the venture was stymied by a precarious imbalance between the treasury value and token market cap, culminating in the decision to return funds to investors and dissolve the association.
Earlier in May, a faction dubbed as "Risk Free Value (RFV) Raiders" sought to gain control over the Aragon treasury by buying up ANT tokens and overpowering the association, an act attributed as a "51% attack". In retaliation, the association relinquished plans to transfer control to token holders, which coincided with the launch of a Base network version of its DAO toolset on August 9.
Published At
11/2/2023 7:18:49 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.