After a 51% attack, changes in Aragon's long-term plans.
Aragon, the open-source platform for building decentralized autonomous organizations (DAOs), has suddenly withdrew plans to grant voting rights to its native Aragon (ANT) token holders regarding the organization's future direction.
On May 9th, the organization responsible for Aragon's management, the Aragon Association, announced that it has exerted its "fiduciary duty" to protect its treasury and mission by "repurposing the Aragon DAO as part of a new grants program.”
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The move came as a response to a 51% attack on the newly launched Aragon DAO by a group known as the "Risk Free Value (RFV) Raiders," who aimed to exploit the use of ANT tokens for financial gain.
A 51% attack is an exploit orchestrated by a group of crypto miners that has control over more than 50% of the blockchain network's mining hash rate.
Aragon's blog post claims that the RFV Raiders, who refer to themselves as the "vultures of crypto," are activist investors linked to Arca Capital Management and were involved in the attack and liquidation of Rook DAO in April.
According to Aragon, Swiss regulations mandate the use of the Aragon treasury to support the development of decentralized governance infrastructure, and its fiduciary duty requires securing these funds from entities seeking personal financial gains.
There is clear evidence that the entities involved in Aragon’s attack are pursuing that end.
Aragon recently transferred $300,000 in USD Coin (USDC) to the Aragon Grants DAO and clarified that the funds held by the DAO would stay on-chain, governed by wrapped ANT (wANT) holders.
In the wake of these events, the price of Aragon's native ANT token dipped by over 4% and continues to fall. At the time of writing, Aragon (ANT) token retails for $2.78, recording a 2.84% decrease in the last 24 hours.
The decisive response by Aragon serves as a reminder of the potential threats and challenges that decentralized organizations may face in the rapidly evolving crypto landscape.
