Aragon DAO members have expressed dissatisfaction with the founding team’s recent move to dissolve its governing body and shut down its token, so they have voted to fund legal action against the founders.
Due to their decision to dissolve the governing body and distribute the majority of the organization’s assets to tokenholders, the founding team of a decentralized autonomous organization (DAO) is facing legal action.
The organization responsible for Aragon declared the dissolution of the Aragon Association on November 2. Officials said that ANT token holders can substitute their tokens for Ether through the organization’s treasury. The update will return approximately $155 million to its stakeholders in digital assets.
Without consulting the DAO, the Aragon team deactivated the ANT token and dissolved its governing body, citing various reasons. This action has infuriated a segment of the community, vocalizing its profound discontent with the decision.
The DAO voted on November 21 to allocate 300,000 USD Coin to Patagon Management, a Delaware-based organization owned by Diogenes Casares, to initiate legal proceedings against Aragon. In opposition to the Aragon team, the firm will lead the negotiations and litigation.
The proposal will guarantee “a proportionate return of deceased token funds to token holders who have redeemed them, rather than their removal.”
Regarding safeguarding the legal process, the approved proposal also grants Patagon the ability to determine a legal strategy and maintain confidentiality.
Nevertheless, public reports will detail every financial transaction involving Patagon that is pertinent to the case. Patagon will also hold the funds in a bank account and a wallet address distinct from the organization’s business accounts.
