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Aragon, an open-source platform aimed at establishing decentralized autonomous organizations (DAOs), has withdrawn its plans to grant voting rights to holders of its native Aragon (ANT) token regarding the organization’s future direction.
The Aragon Association, a Switzerland-based entity responsible for managing Aragon, announced in a tweet on May 9 that it fulfilled its “fiduciary duty” to protect its treasury and overall mission by “repurposing the Aragon DAO as part of a new grants initiative.”
This decision followed a recent 51% attack on the newly launched Aragon DAO by a group known as the “Risk Free Value (RFV) Raiders,” who aimed to exploit the use of ANT for financial gain.
Today, the Aragon Association acted on its fiduciary duty to secure its treasury by repurposing the Aragon DAO into a grants program.
This is a response to a coordinated attack by the group known as “Risk Free Value Raiders” who took down Rook DAO. https://t.co/tVp9QXUUsx— Aragon (@AragonProject) May 9, 2023
As stated in a blog post from Aragon, the RFV Raiders are associated with the recent attack and liquidation of Rook DAO, which took place in early April. Aragon claims that the Raiders are activist investors from the asset management firm Arca Capital Management, who label themselves as the “vultures of crypto.”
The blog post provided additional context regarding the contentious decision:
“The Aragon treasury was established with the explicit mission of supporting builders to advance decentralized governance infrastructure.”
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Aragon clarified that due to Swiss regulations requiring its use for those specified purposes, its fiduciary duty necessitates it to “protect these funds from those attempting to access them for personal financial gain.”
“There is clear evidence that the entities involved in Aragon’s attack are pursuing that end.”
A Twitter thread from May 9 outlining the current status of the Aragon DAO indicated that Aragon transferred an initial payment of 300,000 USD Coin (USDC) to the Aragon Grants DAO. Aragon asserts that the funds currently held by the DAO will remain on-chain and will be governed by wrapped ANT (wANT) holders.
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On May 2, Arca Capital issued an open letter addressing a prior disagreement that resulted in several stakeholders being excluded from Aragon’s Discord, which provided a partial explanation for the recent 51% “attack.”
Arca stated that it was “necessary to allow token holders to find creative solutions to return value to the token while simultaneously allowing Aragon to continue building important DAO public goods,” emphasizing that this could not commence until the “treasury transfer is further along.”
Aragon’s choice to repurpose its DAO comes just over a month after the team announced further collaboration with the well-known Ethereum scaling organization Polygon Labs.
The price of Aragon’s native ANT token experienced a slight decline of just over 4%, dropping from $2.95 to $2.83, following the announcement. At the time of publication, the price of ANT has increased by 2% in the last 24 hours, according to CoinGecko data.
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