The Aragon Association, a Swiss-based company focused on creating a decentralized autonomous organization (DAO) on the Ethereum blockchain, has decided not to grant voting rights to holders of its native Aragon (ANT) tokens.
This decision comes as a result of a recent 51% attack on the Aragon DAO by a group known as the “Risk-Free Value Raiders” (RFV), whom Aragon alleges are activists from the asset management firm Arca Capital Management.
Aragon stated that it has a fiduciary duty to protect its funds and mission, citing Swiss regulations that mandate the use of funds to advance the decentralized governance infrastructure. The Association’s recent decision has significantly impacted the startup’s transition toward becoming a fully decentralized DAO.
Despite this setback, Aragon has repurposed its DAO and transferred an initial payment of $300,000 in USD Coin to the Aragon Grants DAO, which will be governed by Wrapped ANT (wANT) holders and remain on-chain.
Arca Capital has argued that it is essential to enable token holders to devise innovative ways to restore value to the token while allowing Aragon to proceed with creating important decentralized public goods but notes that this process cannot begin until the transfer of the treasury is further advanced.