The Aragon Foundation, a project-building tool for decentralized organizations, recently announced plans to dissolve and distribute remaining treasury funds to holders of its ANT token. This unexpected move will inject over $155 million into the ANT ecosystem.
Market intelligence platform Santiment shared this news and asked people to navigate the price action of ANT carefully.
Source: Santiment – Start using it today
According to a November 2nd blog post, the AA will distribute 86,343 Ether, worth approximately $155 million at current prices, to ANT token holders before unwinding operations. The funds will be distributed through a smart contract on the Ethereum network, with each ANT holder receiving 0.0025376 ETH (around $4.57) for each ANT they send to the redemption contract.
After all redemptions are complete, the AA will burn any remaining ANT in the contract and officially dissolve. The ANT token will cease to have utility at this point, as the announcement stated.
Of the treasury holdings, $11 million will be transferred to the newly formed Aragon Shield Foundation to cover outstanding obligations and mitigate regulatory risks. The core Aragon team will restructure as a private company and continue building out the Aragon platform. A new Product Council will also be created to help guide product development decisions.
The impending wind-down of Aragon raises questions around ANT’s future price trajectory. On the one hand, the token will lose all utility once the distribution is complete, which could lead to a sharp sell-off. The supply flood as users redeem ANT for ETH from the contract may also depress prices in the short-term.
However, the announcement also effectively transforms ANT into a highly liquid claim on Aragon’s treasury assets. Some investors may accumulate tokens as a pure play on the imminent ETH distribution, potentially propping up or even boosting the price over the next few weeks. Longer-term, ANT faces an existential crisis without a viable project behind it, making a prolonged collapse very likely after the initial payoff hype dies
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