Two weeks from now, token-holders for the Aragon software will put the efficacy of its on-chain governance mannequin to the check.
The Aragon venture, launched in 2016, is envisioned as a method to supply customers the instruments to construct decentralized organizations which are secured cryptographically and run natively on prime of the ethereum blockchain. But beginning as early as February of this yr, the core builders behind Aragon have expressed curiosity in launching a model of the app on the Polkadot blockchain community.
At the time it was introduced, Luis Cuende, CEO of AragonOne – a for-profit entity constructing Aragon – stated that the thought was “very early research” and didn’t point out any particular intention to transfer away from launching their product on ethereum.
Now, token holders of Aragon are deciding between two competing Aragon Governance Proposals (AGPs) that may successfully approve or prohibit such plans to construct the appliance outdoors of ethereum. The vote is about to start on April 25 and final for 48 hours, and the the ultimate outcomes of the voting cycle might be introduced April 27 at 16:00 UTC.
AGP 42 was submitted by Ameen Soleimani, the CEO of grownup leisure blockchain platform Spankchain. To wit, the proposal is dubbed “Keep Aragon Focused on Ethereum, not Polkadot.”
Soleimani’s pitch proposes “to restrict Aragon from spending money on Polkadot development in any way, shape or form” and posits that many Aragon token holders “are significant stakeholders in the ethereum ecosystem” who want to see Aragon stay strictly targeted on ethereum.
Conversely, AGP 41, submitted by the Web3Foundation the very same day as Soleimani’s proposal, would approve the non-profit entity holding all of Aragon’s improvement funds – often known as the Aragon Association – to hedge up to $1.5 million in native Polkadot tokens calls DOTs.
The proposal reads:
“The Aragon Association is seeking the signalling by the community for the approval of closer engagement in technology collaboration and parachain development, as well as in purchasing DOTs to diversify its crypto assets.”
At current, the Aragon Association holds roughly $37 million in each crypto and fiat currencies. Their largest holding, value roughly $33 million, is all held in ethereum’s native cryptocurrency, ether.
Executive director of the Aragon Association Stefano Bernardi defined in a submit that the group can’t publicly disclose the worth at which the Web3Foundation is providing the sale of DOT tokens. However, ought to AGP41 be rejected, “the deal that the Aragon Association has the option of entering into is also available to the Association employees and board members” to partake in individually with private funds.
A easy majority vote by Aragon token holders is all that’s required to efficiently implement both AGP and determine the longer term roadmap of the undertaking.
Speaking to CoinDesk, Cuende defined:
“I would like to see AGP 42 not to have a lot of support because I really want to see Aragon in many, many chains … I just want Aragon to succeed however it takes and the technology we use is secondary for me. That’s my position on it.”
In the palms of the token holders
Cuende goes to date in characterizing AGP 42 as a “threat” to the success of Aragon.
“If it passes, the first thing I would do is just start drafting my own proposal for the next ballot [in June] basically doing a declaration of independence,” stated Cuende to CoinDesk. “I think the fate of our project will be decided by the platform we build upon so having multiple really helps have choice and reclaim your independence as an app or second layer protocol.”
At the identical time, Cuende highlights that it doesn’t matter what he thinks, the last word choice will lie within the palms of the Aragon token holders who determine how funds are distributed from the Aragon Association.
Token holders have “a lot of skin in the game,” Cuende explains, which on Aragon instantly interprets to governance energy. The extra ANT tokens a consumer holds, the higher sway she or he has to affect an AGP vote.
Such a plutocratic type of governance, Soleimani tells CoinDesk, runs into issues “if the token holders of Aragon can vote to have Aragon do things not in the Aragon community and team’s best interest but in the token holders of Aragon’s best interest.”
“[Aragon] has chosen to be governed by their tokens and in so far as their tokens are held by people who have a lot of ether…it might not make their token holders happy if they then go and build on another platform,” stated Soleimani.
As such, Soleimani contends that this upcoming voting spherical for Aragon will probably be “an important experiment” that illuminates a few of the inherent difficulties of a plutocratic type of on-chain governance.
Aracon image courtesy of AragonOne