a new decentralized autonomous organization (DAO) supposedly composed of a "Dedicated group of Azuki enthusiasts" has released a proposal to recover 20,000 Ether (ETH) of Zagabondthe founder of blue chip non-fungible token (NFT) Azuki brand.
He proposal, launched on July 2, describes hiring a lawyer to take legal action against Zagabond, whose real name is Alex Xu, for allegedly "stealing" multiple projects. The recovery seeks $39 million in ETH obtained from the launch of Azuki's controversial NFT collection "Elementals". He proposes allocating the recovered funds to the DAO to "promote the growth of the entire Azuki community."
At press time, 88.11% of AzukiDAO (BEAN) tokens have been used to vote in favor of the action, while 11.9% have voted against. The proposal is scheduled to end at 6:38 am UTC on July 3.
What is AzukiDAO?
However, although AzukiDAO claims to be made up of "OG Azuki holders", some have disputed the origins of the DAO and its relationship with the members of the Azuki project.
In a July 3 Twitter thread, pseudonymous commenter Tytan.ETH informed his 19,000 followers that most Azuki holders had never heard of AzukiDAO and assumed it was “fake or a group with malicious intent.”
Here is more information about the origin of the original tweet about AzukiDAO. Most Azuki holders have never heard of this group and assume it is fake or a group with malicious intent.
The voting token was minted two days ago, so that's the following: https://t.co/pF37xr0fQE https://t.co/0SbJLKcnNT
—Titan.ETH (@Titaninc) July 2, 2023
Data from Etherscan shows that the contract for the BEAN token used to vote on the proposal was minted just two days ago, while the associated Twitter page was created only in June 2023, and its Discord channel shows just 116 members.
Cointelegraph reached out to Azuki, Zagabond, and AzukiDAO for comment, but did not receive an immediate response.
Explanation of the elemental controversy
Azuki NFT holders and experts in the NFT community in general have been very critical of the Azuki team ever since the controversial release of their Azuki Elementals. collection on June 27.
The Elementals project was first hinted at during an Azuki brand event hosted in Las Vegas on June 23, with a small allocation of the 20,000 airdropped NFTs to select Azuki holders.
The remaining NFTs became available for purchase at 4 pm on June 27. Existing Azuki NFT holders and holders of "BEANZ", another spin-off project, received a 20-minute pre-sale window.
Related: Yes, the Secret Service has a collection of NFTs and no, it's not for sale.
The sale was never made public, as the entire collection was sold in private sales in less than 15 minutes. Overall, the launch earned Azuki's team $38 million.
This generated widespread backlash, with complaints ranging from the small pre-sale window to mint glitches from an overloaded website to the lack of originality in new NFT art.
NFT holders also expressed concern that the release of 20,000 new NFTs would dilute the value of the pre-existing NFTs in the collection. The controversy peaked when the project team reportedly transferred 20,000 ETH from the wallet shortly after the collection was minted.
Magazine: 4 out of 10 NFT Sales Are Fake – Learn to Spot the Signs of Money Laundering
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