The association behind Aragon (ANT), a decentralized governance platform on the Ethereum (ETH) blockchain, is dissolving.
The Aragon Association (AA) says in a new announcement that it will deploy 86,343 ETH worth about $163 million to offer Ethereum redemptions for ANT holders.
According to the statement, holders of the governance token may redeem their coins at a fixed rate of 0.0025376 ETH per ANT.
Explains the association,
“The AA arrived at the best redemption rate it could achieve for all ANT holders by identifying the most compliant and tax-efficient path forward allowing for the continuation and protection of the project. This decision could not be put to a public vote due to legal constraints, specifically regulatory risks triggered by token speculation and market manipulation.”
Aragon aimed to serve as a framework for building decentralized autonomous organizations (DAOs) on the Ethereum blockchain. Its native token, ANT, allows users to vote on proposals.
The AA says tensions within the project pushed the association into a rushed effort to vest control of the treasury directly to ANT holders.
“However, too few ANT were in the hands of users, partners, and builders after years of product pivots, and a volatile gap existed between the value of the treasury and the token market cap. This put Aragon’s mission in jeopardy.
Rather than continuing down the current path, after several months of deep introspection, we have concluded that the shaky foundations underlying the current structure cannot be fixed and have been holding back the project for too long. Neither the AA nor ANT are currently suited to govern the project.”
In addition to the ETH redemptions, the AA says it will commit $11 million to cover its outstanding obligations and combat regulatory issues. The association also says it plans to “continue the mission in a product-focused structure.”
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