Aragón DAO, a decentralized autonomous organization, has issued two votes in support of a lawsuit against its founding team, allocating $300,000 to fund the legal battle.
The voting process saw unanimous approval of the proposal, with 1.6 million governance tokens issued in favour, according to the voting results.
In the second vote on funding, 1.6 million tokens were obtained in favor and 1 million tokens against.
This decision comes in response to the Aragon Association’s decision to dissolve and decommission its governance token, ANT, through its ethereum exchanges.
The Association made this decision independently, without consulting the DAO, citing legal restrictions as the reason for the action.
The proposed lawsuit seeks to challenge the decision, which was made without a vote, and raises concerns about the possibility of the Aragon Association withholding $50 million.
The proposal aims to hold responsible members of the Aragon Association responsible for ensuring that investors’ funds are returned and not absorbed by the association’s new, undisclosed company.
To take legal action and negotiate with the Aragon team, the DAO allocated $300,000 in funding to Patagon Management LLC.
Patagon, an investment firm owned by Diogenes Casares, has already taken legal action against Wei “Max” Wu in connection with Spartacus Dow, as token holders felt they had suffered losses due to a similar restructuring.
The funding was transferred to Patagon’s stablecoin wallet USDC.
The proposal also allows other people to contribute financially to the lawsuit.
If the case is won, these shareholders will receive their money at an annual interest rate of 10% and a 5% share of the total funds that will be returned to token holders.
However, if you lose the case, they will not receive compensation.
A supervisory committee will monitor the progress of the case.
It consists of representatives from investment firm Arca, cryptocurrency trader DCF God, and individuals with pseudonyms known as Wismerhill, Tedward, CM, Triangular, and Yakitori.
The Aragon Association claims that the majority of ANT holders have redeemed the tokens
The Aragon Association said that a large number of Aragon token holders have redeemed their tokens, exceeding the number of tokens used in the voting process.
They argued that this indicates that the latest vote may not fully represent Aragonese society.
The Aragon Central Team explained that they are not part of the Aragon Federation and do not have the decision-making authority to dissolve the Federation.
It is worth noting that the people involved in the potential lawsuit against Aragon and who are part of the Oversight Committee have previously been involved in disputes and dealings with the DAO.
RFV Raiders, a group of cryptocurrency activists, has been associated with efforts to shut down DAOs and distribute their treasuries to token holders.
In addition, Aragon implied that Abraham Eisenberg, who took responsibility for the attack on the mango markets, belonged to the group.