Aragon Association Dissolves, Distributing $155M in Assets to Tokenholders
The Aragon Association (AA), the governing body for the aragonOS software, has announced its dissolution and the distribution of its assets to tokenholders. In a blog post on November 2, the association revealed that it will be distributing approximately $155 million worth of Ether (ETH), which is currently valued at 86,343 ETH, from its treasury to tokenholders as it unwinds.
The distribution of funds will be done through a smart contract on the Ethereum network. Each ANT tokenholder will receive 0.0025376 ETH (equivalent to $4.57 at the current price) per ANT they send into the redemption contract. Once all redemptions have been made, the association will burn all remaining ANT tokens held in the contract and dissolve. It should be noted that ANT tokens will no longer have any utility after this point.
Reorganization and Future Plans
As part of the dissolution process, $11 million from the treasury will be transferred to the Aragon Shield Foundation to cover outstanding obligations and mitigate regulatory uncertainty. The team behind Aragon will reorganize as a “company” to continue developing Aragon products. Additionally, a Product Council will be formed to assist in decision-making related to product development.
Aragon is known for developing aragonOS, a collection of developer tools that enable the creation of decentralized autonomous organizations (DAOs). The project has also introduced the Aragon App, which allows developers to build DAOs without the need for coding expertise.
Reasons for Dissolution
The decision to dissolve the Aragon Association was driven by bureaucratic complexity, misaligned stakeholders, and failed attempts at modifying governance, which caused tensions within the project. Despite a rushed attempt to transfer control of the treasury to ANT tokenholders, the association encountered difficulties due to the volatile gap between the value of the treasury and the token market cap. Consequently, the association concluded that returning funds to investors and dissolving the association was the most viable solution.
In May, the association faced a threat called the “Risk Free Value (RFV) Raiders,” a group that attempted to gain control of the Aragon treasury by purchasing ANT tokens and outvoting the association. The association referred to this as a “51% attack.” In response to this incident, plans to transfer power to tokenholders were abandoned. The team later launched a Base network version of its DAO creation tools on August 9.
For more information, read the original article from CoinTelegraph.
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