Aragon: experiment with governance at the speed of software
By Rayna Ishihara | Crescent City Capital Market Analyst Intern
What is Aragon
Aragon operates as an open-source software on the Ethereum blockchain, facilitating the creation and management of decentralized autonomous organizations (DAOs). It consists of three primary elements: the Aragon client, catering to developers building customizable online organizations; the Aragon network, fostering interactions within the platform’s DAO community; and the Aragon Association, a non-profit overseeing fund distribution from token sales. Central to Aragon’s governance is its native cryptocurrency, ANT, which grants owners voting power on critical project decisions. The project is spearheaded by founders Luis Cuende and Jorge Izquierdo, who lead Aragon One under the Aragon Flock program, funded by the Aragon Association. Their upcoming 0.7 update, “Bella,” will introduce features such as a mobile browser with AGP vote notifications, local identity features with Identity V1, and on-chain operations through App Center V1. Moving forward, Aragon aims to prioritize user experience and product development within the Aragon Network.
In essence, Aragon is a pioneering platform enabling the creation and management of DAOs on the Ethereum blockchain. It comprises the Aragon client, empowering developers to establish customizable online organizations, the Aragon network, facilitating communication among the platform’s DAO community, and the Aragon Association, responsible for managing and allocating funds generated from token sales. ANT, the native cryptocurrency, grants holders the right to participate in crucial decision-making processes. Spearheaded by founders Luis Cuende and Jorge Izquierdo, the Aragon project continues to advance through the efforts of Aragon One, supported by the Aragon Association. The imminent “Bella” update promises a mobile browser with AGP vote notifications, local identity features via Identity V1, and on-chain operations through App Center V1, with a strong focus on enhancing the overall user experience and product development within the Aragon Network.
What is DAO
Decentralized Autonomous Organizations (DAOs) are entities managed by smart contracts on a foundational smart contract platform. Their core concept revolves around digitally enforced operational rules, offering transparency and direct shareholder control, independent of traditional corporate hierarchies and government influence. DAOs are characterized by transparent and unchangeable operations, with all financial transactions, governance decisions, and predefined regulations recorded on the blockchain.
DAOs present various practical applications that improve upon conventional corporate and partnership structures. Examples include decentralized autonomous trusts and fundraising mechanisms. Notably, in the nonprofit sector, DAOs could significantly enhance donation management by enabling donors to directly participate in decision-making processes. Despite their potential benefits, the legal status of DAOs remains ambiguous. Operating beyond national jurisdictions, DAOs can potentially expose participants to unlimited legal liabilities, despite any protections specified in smart contract codes or DAO guidelines. Consequently, legal uncertainties surrounding DAOs and the broader crypto asset landscape pose considerable risks for investors until regulatory authorities provide more definitive guidelines.
How does Aragon work
Aragon serves as a groundbreaking platform that empowers developers to construct decentralized autonomous organizations (DAOs) utilizing the native cryptocurrency ANT within the Ethereum network. With Aragon, developers gain access to AragonOS, a sophisticated smart contract framework equipped with critical functionalities necessary for the seamless operation of DAOs. Among these functionalities are finance, tokens, and voting, all of which are integral to the structure and governance of these decentralized entities. The finance feature of Aragon facilitates the efficient management of an organization’s financial resources, enabling participants to execute transactions, oversee transaction histories, and monitor the asset balances of their respective DAOs.
Furthermore, the platform fosters an environment where individuals can create and host decentralized applications on the Aragon network, providing an opportunity for creators to generate profits based on the utilization of their applications. Aragon’s comprehensive suite of tools not only supports the development and maintenance of DAOs but also encompasses an incentive model designed to encourage active participation from contributors, efficient fundraising mechanisms, and a vibrant and engaged community. Through the integration of the Agent app, organizations can directly engage with smart contracts on the Ethereum blockchain, amplifying their capacity to interact with various facets of the digital ecosystem.
A crucial aspect of Aragon’s versatility lies in its openness, enabling any user to design and introduce their own application tailored to the specific needs of their organization or to share these applications for broader usage within the Aragon network. This democratized approach fosters a dynamic and collaborative ecosystem, fostering innovation and creativity within the realm of decentralized organizational structures. By providing a robust infrastructure and a user-friendly interface, Aragon continues to redefine the landscape of DAOs, propelling the decentralized governance model to new heights of accessibility and functionality.
Aragon Token
Aragon conducted a token sale in 2017, raising 275,000 ETH (equivalent to $25 million) and officially launched the project on the Ethereum network in 2018. The platform employs ANT tokens for governance, enabling token holders to propose and vote on community rules and fund-related upgrades. ANT serves as the native cryptocurrency, facilitating voting and participation in dispute resolution within the Aragon network. The project stands out for its role in empowering decentralized organizations through its application, Aragon Agent, and integration with Ethereum smart contracts, fostering direct interactions among DAO users.
Recent updates
The live ANT price on November 5th is $4.79 USD with a 24-hour trading volume of $9,827,604 USD. It has a circulating supply of 43,176,145 ANT tokens.
The price of ANT has decreased by 1.06% in the past 7 days, and decreased by 0.39% in the past months. ANT is 67.43% below the all time high of $14.79.
Investing in Aragon
In the context of Aragon’s open-source software on the Ethereum blockchain, its performance is closely associated with Ethereum’s market trends. Recent data indicates Ethereum’s significant growth over the past week, month, and year, signaling positive market momentum and potential for Aragon’s performance.
Moreover, evident from the data, the leading five cryptocurrencies exhibit an upward market trend, signaling the potential resurgence of the crypto market. Given the strong correlation between these cryptocurrencies, this trend bodes well for the future performance of the Aragon coin.
Aragon Tech
Since its inception, Aragon has emerged as a leading solution to the challenges of expensive blockchain expertise, offering customizable DAOs through its intuitive platform, akin to a website builder. This user-friendly approach enables companies to swiftly establish tailored DAOs and easily modify features, fostering global collaboration and smooth user onboarding. The introduction of the Aragon Court has enhanced the platform’s credibility, ensuring transparency and enforcing contracts beyond predefined parameters. Aragon’s commitment to continuous improvement is reflected in the deployment of aragonOS, the publication of the Aragon Manifesto, and the introduction of innovative features such as Aragon Voice, enabling gasless voting. Notably, the platform has actively engaged its community through initiatives like the DAO Global Hackathon, while advancements in technologies like Zero Knowledge Proofs and user-friendly tech stacks signify its dedication to building a sustainable governance hyperstructure for the future.
Technical Side
A recent analysis of Litecoin’s price movement over the past week and month indicates a slight decline, suggesting a period of stability for the price of Aragon following its surge in September. This assessment finds support in the Relative Strength Index (RSI) values for Aragon this month, which have remained within the 45 to 55 range, indicating a consistent and stable price level.
Understanding that RSI levels below 30 signal an oversold or undervalued condition, while levels above 70 suggest overbought or overvalued conditions, the current RSI values for Aragon reflect a neutral balance between bullish and bearish positions. This stable RSI trend further underscores Aragon’s steady price performance and indicates a period of reliable market stability.
Based on the observed resistance and support lines, which are approximately $5.06 and $4.56, respectively, the current price of Aragon appears to be positioned midway between these levels. Notably, the price recently touched the resistance line three days ago, indicating a potential slightly upward trend, albeit with some ambiguity. Considering this situation, it may be advisable to wait for a slight decrease in the price to approximately $4.6 for an optimistic entry point. Holding the coin for the long term seems prudent, given Aragon’s strong use case, well-designed tokenomics, active community, and competent team supporting its development.
References
https://www.kraken.com/learn/what-is-aragon-ant
https://kriptomat.io/cryptocurrencies/aragon/what-is-aragon/
https://coinmarketcap.com/currencies/aragon/
https://www.tradingview.com/chart/zrsQqqcn/?symbol=BITSTAMP%3AANTUSD