Voters On Ethereum-Based Aragon (ANT) Decide Not To Fund Polkadot Blockchain

Voters On Aragon (ANT) Decide Not To Fund Polkadot Blockchain

The token holders of Aragon (ANT) have recently decided to restrict how much money was being used as development funds in order to support the creation of the Polkadot blockchain.

Back in 2017, when Aragon had an Initial Coin Offering (ICO), the company was able to raise $25 million USD in order to start its nonprofit project, the Aragon Association. The Ethereum-based project is focused on creating tools and apps for decentralized companies.

The token holders of this network have voting rights when it comes to deciding how to use the funds that were gathered by the company, so votes are made from time to time. During a recent vote, the token holders decided whether to diversify their investments by using $1.5 million USD to buy DOT tokens, which would be used to fund the development of Polkadot.

According to the CEO of Aragon One, Luis Cuende, the DOT token price cannot be disclosed to the public at the moment for some legal reasons, but Polkadot is reporting to be seeking $60 million USD. The company was already able to get $145 million USD during its ICO in 2017.

One of the main problems faced by Polkadot within the Ethereum community is that the project is often seen as a competitor of the Ethereum mainnet. In fact, a developer commented positively on the speed of the project recently and he was so criticized that he had to leave the community.

Another proposal, which was made by the CEO of Spankchain, Ameen Soleimani, proposed to restrict the development of Aragon to the Ethereum network only.

The Aragon Governance Proposal 41 (AGP 41), which was about all these issues, was voted this weekend. In the end, ANT token holders rejected all the proposals. Polkadot lost with a total of 92% of the votes against it. The proposal to only develop in ETH was barred with 68.7% of the votes.

Only 4.8% of the network participated in the vote, though, meaning that most people are not being a part of the ecosystem in a meaningful way. According to Cuende, this is far from as high as it should be, so he plans to encourage more participation in the future. Part of this effort will be to vote in an easier way, which could draw more people to do it.

However, it was affirmed that the main reason for not voting on investing in Polkadot was not any kind of feeling that the companies could become competitors but a lack of transparency on the price of the DOT tokens, which made the community uneasy.

Cuende affirmed that if the prices were public, people would probably vote yes, but the community was not very keen on not knowing how much they would pay for the tokens. He also commented that he felt that the community does not trust the Aragon Association enough in order to make good investments without disclosing the full information.

While the community has voted not to buy the tokens, some people in the Aragon Association have affirmed that they are interested in acquiring some of the DOT tokens themselves, so this is not a complete loss for Polkadot, it seems.

Cuende also talked about the future of the community. According to him, Aragon One will not explore other blockchains other than the Ethereum network, but he asked other teams to do it. The reasons for sticking with the ETH blockchain is because the team simply do not have the structure to take this responsibility for themselves.

In order to create another team and fund it for research, another vote would be needed, though, so the decision is actually up to the community in the end.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide