In a move to rectify a perceived rug pull, AzukiDAO has successfully passed a proposal to reclaim 20,000 ETH from Azuki founder Zagabond. AzukiDAO has taken decisive steps to tackle the issue head-on, opting to hire a lawyer and pursue a legal case against Zagabond.
Quick facts:
- AzukiDAO successfully passes a proposal to reclaim 20,000 ETH from Zagabond.
- The recovered funds will be used to promote the development of the Azuki community and provide incentives for artists, content creators, and builders.
- Questions have been raised about the legitimacy of AzukiDAO, as some Azuki holders were unaware of its existence.
The decentralized autonomous organization (DAO) initiated the proposal, which gained substantial support from its members, paving the way for legal action against Zagabond.
The Proposal and Legal Battle
AzukiDAO, known for its dedication to community development and rewarding creators, recently put forth a proposal to reclaim the 20,000 ETH lost to Zagabond’s purported fraudulent activities.
With the intention of promoting the growth of the entire Azuki ecosystem, the DAO plans to utilize the recovered funds to provide incentives for artists, content creators, and builders, as well as contribute to community development.
After a period of voting, the proposal received overwhelming support, garnering a vote of confidence from over 88% of AzukiDAO members. This resounding endorsement serves as a clear indication of the community’s determination to seek justice and recover the misappropriated funds.
As a result, AzukiDAO is now taking concrete steps to hire a lawyer and commence legal proceedings against Zagabond.
Challenges and Skepticism
While AzukiDAO’s proposal gained widespread support among its members, certain concerns have been raised regarding the DAO’s legitimacy and its representation of the broader Azuki community.
With only 72 registered members in AzukiDAO, questions have been raised about the DAO’s composition and its connection to the wider Azuki project.
Pseudonymous commentator Tytan.ETH took to Twitter to express skepticism, stating that many Azuki holders were unaware of AzukiDAO’s existence, leading to suspicions about its authenticity and motives.
Data from Etherscan reveals some intriguing details about the entities involved in the voting process. The contract for the BEAN token, used for voting on the proposal, was minted a mere two days ago, indicating its recent creation.
Similarly, the associated Twitter page was only established in June 2023, while the Discord channel currently has a relatively modest membership count of 116 individuals. These factors have sparked curiosity and prompted discussions about the origins and credibility of the entities participating in the voting process.
This recent development follows the contentious launch of the Azuki Elementals collection on June 27. The project faced significant backlash from Azuki nonfungible token (NFT) holders and the larger NFT community due to various concerns.
Criticisms were aimed at the release strategy, which featured a limited presale window and fears of diluting the value of existing NFTs within the collection. Technical issues during the sale, such as overloaded websites and minting failures, added to the frustration.
Furthermore, the controversy escalated when the Azuki team reportedly transferred 20,000 ETH shortly after the NFT collection was minted, leading to suspicions of potential rug pulling and substantial financial losses for token holders.
AzukiDAO’s Next Move
With the AzukiDAO’s proposal approved and legal proceedings underway, all eyes are on the progress and outcome of the lawsuit against Zagabond.
AzukiDAO’s decisive action to reclaim 20,000 ETH and initiate legal proceedings against Zagabond showcases the power of decentralized governance.
