Participants of Aragon DAO voted to fund legal action against the project team in response to their plans to shut down the Aragon Association and devalue the native token ANT.
The Aragon DAO community allocated $300,000 to cover the bills of law firm Patagon Management, which will represent the interests of the organization’s participants in court. This was reported on X by one of the community members. The information was also confirmed by the law firm.
The DAO participants sued the Aragon project team, as the latter decided to dissolve the managing organization Aragon Association without the community’s approval. The project team also announced the redemption of 95% of ANT native tokens in exchange for ETH held on the DAO’s balance sheet. According to the community, the token redemption process is organized unfairly, and the situation generally ignores the interests of a significant part of the platform’s users.
The Aragon team denies the accusations, but the participants intend to defend the interests of the community in court. It’s worth noting that Diogenes Casares, Head of Patagon Management, is also an active participant of Aragon DAO. His company specializes in litigation involving decentralized autonomous organizations.
The role of DAOs in the management of Web3 projects is gradually increasing. At the end of 2022, the Marshall Islands authorities legalized the legal registration of decentralized autonomous organizations as limited liability companies (LLC) with the right to conduct commercial activities. In May 2023, a group of researchers from the Singapore University of Social Sciences studied various voting schemes used to manage decentralized autonomous organizations, on the basis of which they proposed a universal algorithm for collective decision-making.
