A decentralized autonomous organization (DAO) is taking legal action against its founding team following the decision to dissolve its governing body and distribute the majority of its assets to token holders.
On November 2, the team behind Aragón announced that it would dissolve the Aragón Association. The group said it is deploying the organization’s treasury so that ANT token holders can redeem Ether (ETH) in exchange for their tokens. The upgrade will return around $155 million worth of digital assets to its stakeholders.
Citing various reasons, the team behind Aragon shut down the ANT token and dissolved its governing body without consulting the DAO. This angered a faction of his community, which expressed strong discontent with the measure.
This is pretty crazy
He @ProyectoAragón DAO has voted to sue the Aragón team directly for the unfair exchange offer
Could this be the first time a dao has paid to be legal on his own team? pic.twitter.com/bP27niQx1V
— DCF GOD (@dcfgod) November 21, 2023
On November 21, the DAO voted to allocate 300,000 USD Coin (USDC) to Patagon Management, a Delaware-based company owned by Diógenes Casares, to take legal action against Aragón. The firm will lead the negotiations and the lawsuit against the Aragón team.
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According to the proposal, this will ensure that “a reasonable amount of dead token funds are returned to those who have redeemed them on a pro rata basis and are not taken away from these former token holders.”
The approved proposal also allows Patagon to maintain confidentiality when it comes to protecting the legal process and having the ability to decide on a legal strategy. However, all of Patagon’s financial transactions related to the case will be published in public reports. Patagon will also store the funds in a wallet address and bank account separate from the company’s trading accounts.
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