The Aragon Association (AA), the organization behind Aragon (ANT), a decentralized governance platform on the Ethereum (ETH) blockchain, has announced its dissolution. As part of this process, the AA will deploy 86,343 ETH, equivalent to approximately $163 million, to offer Ethereum redemptions for ANT holders.
According to the announcement, holders of the governance token, ANT, will be able to redeem their coins at a fixed rate of 0.0025376 ETH per ANT.
The AA explains that the decision to dissolve the association was made in order to address tensions within the project and to vest control of the treasury directly to ANT holders. The association states that after years of product pivots, there were too few ANT tokens in circulation, resulting in a significant gap between the value of the treasury and the token market cap. This situation put Aragon's mission at risk and led to the conclusion that the current structure could not be fixed.
In addition to the ETH redemptions, the AA has committed $11 million to cover its outstanding obligations and combat regulatory issues. The association plans to continue its mission in a product-focused structure.
The dissolution of the Aragon Association and the offering of Ethereum redemptions for ANT holders marks a significant shift in the governance of the Aragon platform. This decision aims to address tensions within the project and provide a more direct control of the treasury to ANT holders. The association's commitment to covering obligations and addressing regulatory issues demonstrates its dedication to ensuring a smooth transition. ANT holders now have the opportunity to redeem their tokens at a fixed rate, allowing them to participate in the future of the project.
