Learning About DAO Governance From Aragon’s Crisis

Whereas the product foundered, funds from the token launch had been managed by the Aragon Affiliation, a Swiss nonprofit, and grew to over $200 million in worth because of the rally in eth. Throughout a deliberate governance transition from the Aragon Affiliation to the Aragon DAO, some activist traders (or “governance raiders,” as some wish to name them) purchased up management of the DAO and began lobbying for the liquidation of the treasury managed by the nonprofit. This assault — exacerbated by inner tensions within the nonprofit board — triggered some advanced authorized and monetary maneuvers, ensuing not too long ago within the exit of about $75 million from the ecosystem in addition to the efficient liquidation of the nonprofit, the DAO and the token. For now, a diminished Aragon lives on within the type of a brand new nonprofit to be funded by a reserve of funds from the liquidation.