crypto.news
Swiss-based firm Aragon Association has abandoned plans to grant voting rights to native Aragon (ANT) token holders over various aspects of the organization’s operation, including its $200 million treasury.
The latest development has significantly impacted the DAO-centric Ethereum startup’s transition toward becoming a fully decentralized autonomous organization.
The Association cited its “fiduciary duty” to protect its funds and mission after the Aragon DAO was targeted by a 51% attack by a group called the “Risk-Free Value (RFV) Raiders.”
Today, the Aragon Association acted on its fiduciary duty to secure its treasury by repurposing the Aragon DAO into a grants program.
— Aragon 🦅 (@AragonProject) May 9, 2023
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 alleges that the RFV Raiders are activist investors from the asset management firm Arca Capital Management, who refer to themselves as the “vultures of crypto.”
Aragon explained on its blog that its fiduciary duty required it to secure its funds from those seeking to siphon them for their financial benefit, citing Swiss regulations that mandate the use of funds for advancing decentralized governance infrastructure.
The blog post illuminated the controversial decision, stating that “there is clear evidence that the entities involved in Aragon’s attack are pursuing that end.”
Aragon repurposes its DAO after a setback
According to a Twitter thread on May 9 regarding the Aragon DAO, an initial payment of 300,000 USD Coin was transferred by Aragon to the Aragon Grants DAO. Wrapped ANT will govern the DAO’s funds (wANT) holders and remain on-chain, per Aragon’s claim.
In a letter dated May 2, Arca Capital responded to a prior disagreement that resulted in specific stakeholders being excluded from Aragon’s Discord channel. The letter partially explained the recent 51% attack that targeted the Aragon DAO.
Arca argued that it was essential to enable token holders to devise innovative ways to restore value to the token while allowing Aragon to proceed with creating important decentralized autonomous organization (DAO) public goods. However, Arca noted that this process could not begin until the transfer of the treasury was further advanced.
At the time of writing, Aragon’s native ANT token was trading at $2.77, indicating a 3.2% drop in price, according to CoinMarketCap.