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Aragon community voting to transfer treasury funds after dissolving old DAO

Altcoins

www.theblock.co 26 September 2022 14:12, UTC
  
Reading time: ~2 m

The Aragon community is voting on what to do with its treasury funds after it transitions from its old DAO structure to one that incorporates delegated voting as part of its architecture.

Aragon is a blockchain project that provides tools for users to create and manage DAOs on the Ethereum network.

This vote is one of two ongoing polls within the Aragon community. The second vote is to determine what happens to the charter of the Aragon Network DAO (AN DAO) when the new DAO emerges. Charter, in this case, refers to an agreement that was used to establish the AN DAO. With the transition to a delegated voting DAO, a new charter will be created for the new decentralized organization.

The move from AN DAO to the new structure will enable delegated voting. AN DAO was deployed on Aragon Govern, a smart contract system for creating DAOs. DAOs created with Aragon Govern do not support vote delegation, according to the Aragon forum post. Hence, the reason for the transition to a new DAO that supports vote delegation.

In this context, vote delegation is when holders of a project’s token that confers voting rights transfer those rights to other community members to vote on their behalf.

According to the Aragon governance proposal, this transition brings up issues concerning what to do with the AN DAO treasury. “The potential termination of the AN DAO Charter opens up significant risk regarding the balance of funds held in the AN DAO Treasury,” the proposal on the Aragon forum stated.

Voters have to choose whether or not to transfer the AN DAO treasury balance to the Aragon treasury as soon as the new DAO structure emerges. Data from DeepDAO shows that AN DAO holds $166 million in its treasury, half of which is in the form of the USDC stablecoin. The treasury also holds $46 million in ether and $25 million in wrapped bitcoin.

Data from the voting page show that 67% of participants are in the favor of the treasury transfer. The vote will end on Oct.5.


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