In a surprising announcement, the Aragon Association (AA), the governing body for the renowned aragonOS software, has revealed its plans to dissolve. According to a blog post published on November 2, the AA will distribute the majority of its assets to token holders as part of the dissolution process. This move marks the end of an era for the organization and paves the way for a new chapter in the development of aragonOS.
To carry out the dissolution, the AA will distribute a substantial amount of its treasury holdings to token holders. The distribution will amount to 86,343 Ether (ETH), equivalent to approximately $155 million at the current price. This distribution will be facilitated through a smart contract on the Ethereum network. Each Aragon (ANT) token holder will receive 0.0025376 ETH, or $4.57 at the current price, for each ANT token they send into the redemption contract.
After all redemptions have been completed, the AA plans to burn all remaining ANT tokens held in the contract. This step signifies that ANT will no longer have any utility going forward, as stated in the blog post. The dissolution of the AA and the subsequent burning of ANT tokens mark a significant turning point for the aragonOS ecosystem.
As part of the dissolution process, $11 million from the AA’s treasury will be transferred to the Aragon Shield Foundation. This transfer aims to cover outstanding obligations and mitigate against potential regulatory uncertainties. By taking these precautionary measures, the AA aims to ensure the smooth transition for all stakeholders involved.
Although the AA is dissolving, the team behind aragonOS is not disbanding. Instead, they plan to reorganize as a new “company” dedicated to the continuous development and improvement of Aragon products. To facilitate better decision-making, a “Product Council” will be established to guide future product development strategies.
Furthermore, in a bid to enhance the accessibility of decentralized autonomous organizations (DAOs), Aragon has announced a collaboration with Polygon Labs. This collaboration seeks to leverage the expertise of both entities to create a seamless and user-friendly experience for developers looking to create DAOs without the need for extensive coding knowledge.
Understanding the Decision to Dissolve
The decision to dissolve the AA was not taken lightly. The blog post cites various challenges, including bureaucratic complexity, misaligned stakeholders, and failed attempts at modifying governance, as primary reasons for the dissolution. Despite a rushed attempt to transfer control of the treasury directly to ANT holders, the AA faced insurmountable difficulties due to the volatile gap between the treasury’s value and the token market cap.
It is worth noting that back in May, the Aragon Association faced a significant threat when the “Risk Free Value (RFV) Raiders” attempted to take control of the Aragon treasury through token accumulation and outvoting. The association referred to this event as a “51% attack.” In response, the association abandoned its plans to transfer power to token holders, further fueling the discontent within the community.
Despite its challenges, aragonOS remains an integral part of the blockchain ecosystem. With the dissolution of the Aragon Association, a new era begins for aragonOS, driven by collaboration, innovation, and a steadfast commitment to decentralized governance. As the team transforms into a new entity, the future holds endless possibilities for the development of aragonOS and the expansive potential of DAOs in the digital landscape.