Key Insights
- Aragon, an open-source software platform for creating and managing DAOs on the Ethereum blockchain, is dissolving.
- The Aragon Association, the entity behind the aragonOS software, is distributing its $155 million treasury to ANT tokenholders.
- ANT token holders can redeem their tokens for ETH at a fixed rate of 0.0025376 ETH / ANT.
- The Aragon Shield Foundation, a new entity, will cover the rest of the association’s obligations and protect it against unforeseen regulatory laws.
- The Aragon software will still be available for developers and users, but it will no longer be actively maintained by the Aragon Association.
According to this announcement tweet, the Aragon Association is about to dissolve itself, and return more than $150 million to its token holders.
The Aragon Association is the entity behind the aragonOS software. The aragonOs software, on the other hand, is a platform creators use to create and maintain decentralized autonomous organizations (otherwise known as DAOs) on the Ethereum blockchain.
Here are the details about the dissolution, as well as the challenges and conflicts that made it impossible for Aragon to continue.
What Is Aragon And Why Is It Dissolving?
Put simply, Aragon is an open-source software platform for creating and managing decentralized autonomous organizations (DAOs) on the Ethereum blockchain.
DAOs, on the other hand, are organizations that are governed by smart contracts. This means that DAOs can collate votes and make decisions, without the need for human intervention.
The Aragon Association created a tool that simplifies DAO creation and was responsible for representing the interests of the $ANT token holders.
ANT is the native token of the Aragon network, which was supposed to be a decentralized platform for hosting and running DAOs.
However, the association has been plagued with difficulties and disputes that have ultimately led to its collapse, as mentioned in this blog post.
According to this post, the Aragon network was going under because of issues relating to legal, regulatory, and operational issues that hindered its efficiency, conflicts among its developers, contributors, and community members, as well as failed governance attempts.
As a result, the association has decided to dissolve itself and distribute all of its assets to the $ANT tokenholders.
How Will The Treasury Distribution Work?
The blog post also outlines that The association holds a treasury of 86,343 Ether (ETH), worth about $155 million at the current price.
“The AA has decided to deploy 86,343 ETH to offer all ANT holders the opportunity to redeem their ANT for ETH at a fixed rate of 0.0025376 ETH / ANT. The objective of this initiative is to redeem all outstanding circulating supply.â€
All of this will be to the ANT holders through a smart contract on the Ethereum network.
Each ANT holder is expected to receive about 0.0025376 ETH ($4.57 at the current price) per ANT they send into the redemption contract.
The blog post also outlines that after all redemptions have been made, the association will burn all ANT held in the contract and go ahead to finalize the dissolution.
The Aragon Shield Foundation
The association announced that it will also transfer $11 million from the treasury to the Aragon Shield Foundation.
The Aragon Shield Foundation is a new entity that will cover the rest of the association’s obligations, and protect it against some unforeseen regulatory laws.
This new association will also be reorganized and will continue to develop Aragon products.
The original Aragon Association stated that this decision was made after careful planning with the community and the legal advisors.
The association also expressed its gratitude to the supporters and contributors of the project and hoped that the dissolution would benefit the tokenholders and the DAO ecosystem.
Here’s What Aragon’s Dissolution Means
The dissolution also means that the ANT token will steadily decline in value and utility, until the price crashes to zero.
Aragon, at the moment, trades at about $4.5 on CoinMarketCap after crashing from a $14 all-time high.
The tokenholders will have to redeem their tokens for ETH before the contract expires or risk losing their investment.
However, the dissolution does not mean that the Aragon software will stop working.
According to Aragon’s announcement, the aragonOS and the Aragon app will still be available for developers and users who want to create and manage DAOs.
However, the software will no longer be actively maintained, and will now depend on the new company and the Product Council, which may have different priorities than the original Aragon association.
This dissolution also opens up a hole in the market for other companies who offer the same services like DAOstack, Colony, MolochDAO, and DAOhaus.
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