Aragon, an open source framework designed to launch decentralized autonomous organizations (DAOs), has drawn up plans for Aragon Native (ANT) token holders to have a vote on the future direction of the organization.
The Aragon Association, a Swiss-based organization that oversees Aragon's management, said in a May 9 tweet that it exercised its "fiduciary duty" to secure its treasury and overall mission by "reusing Aragon's DAO as part of a new grant program. ”
The decision was made after the newly released Aragon DAO suffered a 51% attack at the hands of a group called "Risk Free Value (RFV) Raiders", who sought to manipulate the use of ANT as a means of achieving financial gain.
Today, the Aragon Association acted on its fiduciary duty to secure its treasury by converting the Aragon DAO into a grant program.
This is a response to a coordinated attack by the group known as "Risk Free Value Raiders" that took down Rook DAO. https://t.co/tVp9QXUUsx
— Aragon (@AragonProject) May 9, 2023
According According to an Aragon blog post, the RFV Raiders are linked to the recent Rook DAO attack and takedown, which occurred in early April. Aragon alleges that the Raiders are activist investors in asset management firm Arca Capital Management that refer themselves as "cryptocurrency vultures".
The blog post shed more light on the controversial decision:
“The Aragon Treasury was established with the explicit mission of supporting builders to advance decentralized governance infrastructure.”
Aragón explained that due to Swiss regulations that require their use for stated purposes, his fiduciary duty obliges him to "secure these funds from those who seek to access them for their own financial gain."
"There is clear evidence that the entities involved in the attack in Aragon pursue that goal."
A Twitter from May 9 thread Detailing the current status of the Aragon DAO, he explained that Aragon transferred an initial payment of 300,000 USD Coin (USDC) to the DAO of Aragon Scholarships. Aragon claims 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 held an opening letter responding to a previous disagreement that saw several stakeholders banned from Aragon's Discord, which offered a partial explanation for the recent 51% "hack".
Arca stated that it was "necessary to allow token holders to find creative solutions to bring value back to the token while allowing Aragon to continue building important DAO public goods," noting that this could not start until the " treasury transfer is more advanced".
Aragón's decision to reuse its DAO comes just over a month after the the team announced further collaboration with the popular Ethereum scaling organization Polygon Labs.
The Aragon native ANT token price wobbled just over 4%, from $2.95 to $2.83, after the upgrade. At press time, the ANT price is up 2% in the last 24 hours, according to CoinGecko data.
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