The Aragon Association, the organization responsible for managing the Aragon open-source framework for decentralized autonomous organizations (DAOs), has decided to cancel its proposal to grant voting rights to holders of its native Aragon (ANT) token. The announcement was made in a blog post on May 9, 2023.
The Association cited its fiduciary duty to protect its treasury and overall mission as the reason behind the decision. It plans to repurpose the Aragon DAO as part of a new grants program, which will support builders of DAOs, dApps, and plugins using the latest Aragon technology stack.
The cancellation of the proposal comes in response to a 51% attack on the recently created Aragon DAO by a group known as the “Risk Free Value (RFV) Raiders.” The blog post suggests that the Raiders, who refer to themselves as the “vultures of crypto,” are associated with the attack and dissolution of Rook DAO in April. It claims that the Raiders are purportedly activist investors from Arca Capital Management, and they seek to extract value from Aragon for financial profit.
According to Aragon, Swiss regulations require the utilization of the Aragon treasury for its intended social objective. As a result, fiduciary responsibility necessitates that the Aragon Association safeguard these funds from individuals attempting to acquire them for their personal financial gain. Aragon also pointed out that there is compelling evidence indicating that the entities behind the Aragon assault are pursuing this objective.
Arca Capital wrote an open letter on May 2, 2023, addressing a previous disagreement that led to several stakeholders being banned from Aragon’s Discord. In the letter, Arca stated that it was essential to let token holders develop innovative solutions to enhance the token’s value while allowing Aragon to create essential DAO public goods. Arca noted that it would continue to propose that Aragon “continue the buybacks to return ANT token to book value”, and and they were not planning on advocating for a dissolution as Aragon as claimed.
Meanwhile, an initial payment of 300,000 USD coins has been transferred to the Aragon Grants DAO. The funds held by the DAO will remain on-chain and be governed by holders of wrapped ANT (wANT). Aragon provided these updates on the status of the Aragon DAO in a Twitter thread on May 9, 2023.
In response, the Aragon Association is repurposing the Aragon DAO as part of a new grants program to fund DAO builders who are launching DAOs, dApps, and plugins on the new Aragon tech stack. pic.twitter.com/9ChmV6DIf6
— Aragon 🦅 (@AragonProject) May 9, 2023
Earlier in April, Aragon announced its integration with the Polygon network, providing users an affordable and user-friendly way to establish and oversee DAOs. This partnership with Polygon Labs enables the development of swift and secure DAOs without the need for coding skills, with costs as low as 50 cents.
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