A freshly launched Decentralized Autonomous Organization (DAO), identifying itself as a “committed assembly of Azuki aficionados,” has unveiled a proposal to retrieve 20,000 Ether from the founder of the premier nonfungible token (NFT) brand Azuki, Zagabond.
An Unprecedented AzukiDAO Proposal Strikes the Blockchain Space
The proposal emerged on July 2, putting forth the idea of employing a lawyer to take legal action against Zagabond, whose real identity is known to be Alex Xu. The accusations thrown at Xu revolve around his purported involvement in sabotaging multiple projects.
The proposed clawback targets $39 million worth of Ether from launching the contentious “Elementals” NFT collection under the Azuki brand. The proposal further suggests that the reclaimed funds should be channeled back into the DAO for “fostering the overall growth of the Azuki community.”
Most AzukiDAO (BEAN) token holders have cast their votes in support of the action, with only 11.9% voting against it. The voting process will conclude at 6:38 am UTC on July 3.
However, despite the AzukiDAO declaring to consist of “OG Azuki holders,” there has been speculation concerning the origin of the DAO and its connections with the Azuki project members.
Pseudonymous Commentary Questions the Integrity of the DAO
On July 3, a thread on Twitter from the pseudonymous commentator Tytan.ETH reported that most Azuki holders were oblivious to the existence of the AzukiDAO, and therefore suspected it to be “either bogus or a group with harmful intentions.”
Supporting this skepticism, Etherscan data reveals that the contract for the BEAN token, employed for voting on the proposal, was only minted two days prior. Additionally, the corresponding Twitter page existed only in June 2023, and its Discord channel boasts a mere 116 members.
The release of Azuki’s NFTs and broader NFT community comments have been riddled with criticism towards the Azuki team since the controversial introduction of the Azuki Elementals collection on June 27.
Unraveling the Controversy Surrounding the Azuki Elementals Launch
The Elementals project was initially hinted at during an Azuki-sponsored event in Las Vegas on June 23, with a modest allotment of the 20,000 NFTs air-dropped to a select group of Azuki holders.
The remaining NFTs were up for grabs at 4 pm on June 27. Pre-existing holders of Azuki NFTs and “BEANZ” — a derivative project — were given a 20-minute pre-sale window. The sale never went public, as the collection was privately purchased in under 15 minutes. The launch generated a whopping $38 million for the Azuki team, resulting in widespread resentment. Dissatisfaction stemmed from various factors, such as the small pre-sale window, website failures due to overload, and allegations of unoriginal artwork in the new NFTs.
Existing NFT holders voiced their fears that issuing 20,000 new NFTs could potentially depreciate the existing NFTs’ value in the collection. The controversy climaxed when the project team allegedly transferred 20,000 ETH from the wallet shortly after the collection was minted.