The governing body responsible for the aragonOS DAO-creation tool, known as the Aragon Association (AA), has made the decision to wind down its operations and distribute most of its assets to tokenholders.
In a blog post dated November 2, the AA announced its dissolution and the distribution of approximately $155 million worth of Ether (ETH), equivalent to 86,343 ETH from its treasury, to tokenholders through a smart contract on the Ethereum network.
Asset Distribution to Tokenholders
Each holder of ANT tokens will receive 0.0025376 ETH, valued at $4.57 at the current market price, for each ANT token they send into the redemption contract.
Further, after the completion of these redemptions, the AA will burn all remaining ANT tokens held in the contract, rendering ANT tokens without utility.
Allocation of Funds and Transition
A portion of $11 million from the treasury will be transferred to the Aragon Shield Foundation to cover outstanding obligations and address regulatory uncertainties. The AA will transition into a “company” structure, continuing the development of Aragon products. Additionally, to facilitate decision-making regarding product development, a “Product Council” will be established.
Aragon is the developer of aragonOS, a suite of developer tools used for creating decentralized autonomous organizations (DAOs). Further, the organization also introduced the Aragon App, enabling developers to create DAOs without coding expertise.
In addition, challenges such as bureaucratic complexity, misaligned stakeholders and unsuccessful attempts to modify governance drove the AA’s decision to unwind its operations, leading to tensions within the project.
Previous Attempt and Challenges
The AA had previously attempted a rushed plan to transfer control of the treasury directly to ANT token holders but encountered difficulties due to a significant gap between the treasury’s value and the token market cap.
However, this attempt did not succeed, leading to the decision to return funds to investors and dissolve the association.
Aragon Response to a 51% Attack
Moreover, in May, a group known as “Risk Free Value (RFV) Raiders” attempted to gain control of the Aragon treasury by purchasing ANT tokens and outvoting the association, an action described as a “51% attack.” In response, the AA abandoned plans to transfer power to tokenholders. Furthermore, the organization also launched a Base network version of its DAO creation tools on August 9.
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