A few days after the controversial sale of Azuki’s new NFTs collection, a DAO emerged as a matter of urgency within the community. The single ballot proposal to « hire a lawyer and help the community recover the 20,000 ETH » received 88% positive support.
Azuki misses collection launch
The members of « Azuki DAO », a community freshly created for the occasion, proposed a governance vote to decide on possible legal action against NFT collection founder Azuki. At issue: the launch of their long-awaited Elementals collection, deemed a disaster.
In short, 10,000 « Elemental Beans » could be consumed to reveal an Azuki Elemental who could control air, fire, earth or water. In less than a quarter of an hour, the collection was completely sold out.leaving no time for the public sale to get underway. And all this, despite a hefty price of 2 ETH each.. As a result, the project was able to raise 20,000 ETH (almost $37.5 million). in the space of a few minutes.
On paper, the community seemed won over. In reality, it was much more complicated. While the mint process was strongly questioned at first, it was above all the design of the collection that made people cringe: the Elementals are very similar to the basic Azuki.
Comparison of designs from the Azuki collection (top) and Elementals (bottom)
A failure that cost Azuki’s team dearly. The gain of almost $40 million was quickly eclipsed. by the loss of $140 million in capitalization for their main collection. Azuki’s floor price fell from 14.44 ETH the day before the mint to 7.1 ETH a week later, a drop of over 50%.
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What is Azuki’s DAO ambition?
The title of the governance proposal issued by Azuki DAO is unmistakable: « Hire a lawyer and help the community recover Zagabond’s 20,000 ETH ». In a few words, it is explained that the community has always helped the project to develop and despite this, the return has only been « only a profile picture similar to that of the original Azuki holders, and nothing more », even adding that the team « blatantly ripping them off with promises of empathy ».
If adopted, Azuki DAO’s recent proposal would ask a lawyer to bring charges against Azuki’s founder. Known only by the pseudonym Zagabod, he would also be accused of having « scamming via several projects »but no further details were provided.
The proposal would also seek a refund of the sale. The Azuki DAO community would then use it to promote the growth of the entire Azuki community. and to provide rewards and incentives to artists, content creators and all those who contribute directly to this project.
Please note, however, that the Azuki DAO is by no means an official organization. The group was formed over the weekend, in response to the failed launch of the. The BEAN token, used for the governance vote, was sent via airdrop to all NFT holders in the Azuki collection.
At the time of writing, the vote has closed with 88% positive support. It will be interesting to follow the outcome, especially as this is the first time a community of NFT holders has sued its founder via a DAO.
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Source: Azuki DAO Vote
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Lilian Aliaga
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