Aragon Association Dissolves and Redeems ANT Tokens for ETH

The Aragon Association acts as the steward for the Aragon (ANT) treasury and assets.
Token holders have until November 2, 2024 to exchange their ANT tokens for Ether (ETH).
86,343 ETH from the treasury has been allocated for the redemption at a rate of 0.0025376 ETH per ANT.

The Aragon Association, a Swiss-based nonprofit that supports the development of the Aragon (ANT) project, has announced that ANT token holders must redeem their tokens for Ethereum (ETH) over the next twelve months. The association is responsible for managing the ANT treasury and assets.

What is happening with Aragon (ANT)?

The Aragon Association has decided to dissolve itself and transition into a new “product-focused structure” to continue the development of the project. As a result, there is no longer a reason for users to hold on to their ANT tokens. The association has set aside 86,343 ETH from the treasury, which accounts for 87% of its holdings, to facilitate the redemption process. The redemption rate is set at 0.0025376 ETH per ANT, and a smart contract will handle the autonomous redemptions.

In their announcement on November 2, the Aragon Association stated, “At the end of the redemption period, the redeemed ANT will be burnt, and any remaining ETH will be sent to the Ethereum address of the new product-focused structure.”

Token holders have until November 2, 2024, at 23:59 UTC to complete the redemption process. After this deadline, the option to redeem ANT tokens will no longer be available.

A New Chapter for Aragon

Aragon aims to provide a user-friendly technology stack for decentralized autonomous organizations (DAOs). In 2017, the project raised 275,000 ETH (approximately $25 million at the time). The ANT token was also designed to power Aragon Network’s dispute resolution system.

While the project achieved some successes, such as the Aragon Nest grants program and the launch of the DAO framework aragonOS, it faced significant challenges in other areas. For example, the project failed to create a highly anticipated court system for DAOs and an appchain on the Cosmos blockchain.

Despite the bull market’s growth and increased treasury size, the nonprofit organization was unable to effectively align its efforts. According to the announcement, “bureaucratic complexity, misaligned stakeholders, and failed attempts at modifying governance increased tensions within the project.”

Efforts to give ANT holders control over the treasury were unsuccessful because users, partners, and developers only held a small fraction of the total supply. This created a “volatile gap” between the treasury’s value and the token market cap. The situation threatened Aragon’s mission.

One post on X acknowledged that the project needed a complete reset.

The fresh start consists of:

• ANT <> ETH redemption targeting 100% of ANT supply, lasting 1 year. There is no longer purpose to hold ANT• @AragonAssoc dissolved• A new product-focused structure overseen by industry leaders

All to continue building the best DAO tooling

— Aragon 🦅 (@AragonProject) November 2, 2023

As of Friday, the Aragon token price was $4.58, a decrease of more than 68% from its all-time high of $14.64 in April 2021.