Aragon DAO, a decentralized autonomous organization, has recently approved two votes supporting a legal action against its founding team, allocating $300,000 for the lawsuit. The unanimous voting process, with 1.6 million governance tokens in favor, reflects the DAO’s discontent with the Aragon Association’s independent decision to dissolve itself and discontinue its governance token, ANT, without consulting the DAO.
The lawsuit aims to challenge the association’s decision, expressing concerns about the potential retention of $50 million by the Aragon Association. The objective is to ensure accountability and the return of investor funds, preventing absorption by the association’s newly undisclosed company. To pursue legal action, Aragon DAO has allocated $300,000 to Patagon Management LLC, owned by Diogenes Casares, a company previously involved in legal action related to the Spartacus DAO.
Funds have been transferred to Patagon’s wallet in the stablecoin USDC, and the proposal allows others to contribute financially to the lawsuit. Contributors stand to receive their funds back with a 10% annual interest rate and a 5% share of the total funds if the case is won. However, there is no compensation if the case is lost. An oversight committee, including representatives from Arca, DCF God, and pseudonymous individuals, will monitor the lawsuit’s progress.
Aragon DAO funds up for a legal showdown! A split vote of 1.6 million for versus 1 million against secures $300,000 in #USDC. The discontent stems from the Aragon Association's unilateral actions, sparking concerns of a $50 million retention. #Aragon #DAOhttps://t.co/EViJqbaJ5v
— TWJ News (@TronWeekly) November 22, 2023
The Aragon Association counters that a significant number of token holders have redeemed their tokens, surpassing the number used in the voting process. They argue that this indicates the recent vote may not fully represent the Aragon community. The Aragon core team clarifies its separation from the association and emphasizes its lack of decision-making power in the dissolution. Notably, individuals involved in the potential lawsuit against Aragon have a history of disputes and dealings with DAOs. The RFV Raiders, associated with efforts to shut down DAOs, have connections to the oversight committee. Aragon also implies the involvement of Avraham Eisenberg, responsible for an attack on Mango Markets, in the group.