Aragon DAO Community Votes Legal Proceedings Against Founders Following Controversial Dissolution

In this post:

  • Aragon DAO votes to fund legal action against its founders after they unilaterally dissolved the governing body and shut down the ANT token without community consultation.
  • The DAO allocates $300,000 in USD Coin to Patagon Management for the lawsuit, highlighting issues of governance and decision-making in decentralized organizations.

In a dramatic turn of events, a decentralized autonomous organization (DAO), known as Aragon, is embroiled in a legal battle with its founding team. The conflict arose after the Aragon Association announced its dissolution and the shutdown of its ANT token, a decision made without consulting the DAO community. The move has sparked significant unrest among its members, leading to a decision to take legal action. The Aragon Association disclosed their plan to dissolve the Aragon Association, a governing body integral to the DAO’s operations. Alongside it, they proposed deploying the organization’s treasury to allow ANT token-holders to redeem Ether (ETH) in exchange for their tokens. 

The update was set to return approximately $155 million in digital assets to stakeholders. However, how these decisions were made, bypassing the DAO’s input has led to a severe backlash from a faction within the community. The abrupt shutdown of the ANT token and the dissolution of the governing body, without prior consultation with the DAO, has been cited as a major point of contention. The unilateral decision by the Aragon Association has not only angered the community but also raised questions about the governance and decision-making processes within decentralized organizations.

Legal action funded by the DAO community

In response to these developments, the DAO community has taken a decisive step. They voted to allocate $300,000 in USD Coin (USDC) to Patagon Management, a Delaware-based company owned by Diogenes Casares. The funding is earmarked for initiating legal proceedings against the Aragon Association. Patagon Management is tasked with spearheading the negotiations and the lawsuit, aiming to address the grievances of the DAO community.

The proposal, which was passed by the DAO, outlines the objective of ensuring that “a reasonable amount of dead token funds are returned to those that have redeemed pro-rata and not taken away from these former token holders.” The move reflects the community’s determination to seek justice and fair treatment in the wake of the Aragon Association’s controversial decisions.

Furthermore, the proposal grants Patagon Management the discretion to maintain confidentiality regarding the legal process and to decide on the most appropriate legal strategy. However, it also mandates that all financial transactions related to the case be reported publicly. Patagon is required to store the allocated funds in a wallet address and a bank account separate from the company’s business accounts, ensuring transparency and accountability in the use of these funds.

Aragon DAO’s future and decentralized governance

The unfolding situation with Aragon DAO raises broader questions about the challenges of decentralized governance and the responsibilities of the Aragon Association toward their communities. As decentralized autonomous organizations continue to gain prominence in the digital and financial landscapes, the Aragon case serves as a cautionary tale about the complexities and potential pitfalls of such governance structures.

The legal action initiated by the DAO community against the Aragon Association is not just about seeking financial redress but also about setting a precedent for how decisions should be made in decentralized organizations. It underscores the importance of community involvement and consensus in decision-making processes, especially in structures that are inherently designed to be democratic and decentralized.

As the legal proceedings progress, the outcome of the case will be closely watched by the broader blockchain and cryptocurrency communities. It will likely influence future governance models in decentralized organizations and could lead to more robust frameworks that better protect the interests of all stakeholders involved.


The legal battle between Aragon DAO and the Aragon Association is a pivotal moment in the world of decentralized governance. It highlights the need for clear communication, community involvement, and adherence to democratic principles in decision-making processes within DAOs. As the case unfolds, it will undoubtedly shed light on the evolving dynamics of decentralized organizations and the critical role of governance in ensuring their success and sustainability.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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