- Azuki community establish a DAO with intentions to reclaim funds from the brand’s founder, Zagabond.
- The DAO aims to retrieve the $39 million worth of ETH from the “Elementals” collection and redistribute it to the Azuki community.
- Recent exploit in AzukiDao’s governance token contract allowed attackers to profit from a vulnerability.
In an intriguing turn of events, Azuki, a renowned blue-chip NFT brand, is witnessing its community rally together in the form of a DAO to reclaim funds from its founder, Zagabond. The DAO, comprised of Azuki enthusiasts, has proposed the retrieval of 20,000 Ethereum (ETH) earned from the launch of the controversial “Elementals” NFT collection.
For those not in the know, Azuki has established itself as a prestigious name in the NFT space. However, their “Elementals” collection has been engulfed in controversy, leading to this unique DAO effort to recover funds.
The proposal put forth by the DAO is multi-pronged. It entails hiring a lawyer for initiating legal proceedings against Zagabond, the founder of Azuki, for alleged misconduct in handling multiple projects.
Furthermore, it seeks to reclaim the hefty sum of $39 million, equivalent to 20,000 ETH, acquired during the “Elementals” collection launch. The DAO aspires to utilize these funds to foster Azuki’s growth by offering rewards and incentives to artists, content creators, and contributors.
These are the individuals who have been actively promoting the brand, particularly on social platforms like Redbook, Twitter, and Discord. Adding to Azuki’s troubles, there was a recent exploit of its governance token contract.
Reportedly, due to a vulnerability in AzukiDao’s contract, two attackers were able to siphon off 35 ETH. The exploit appears to have been enabled by a specific contract vulnerability that allowed malicious actors to profit.
Despite these setbacks, the community’s united front in the DAO initiative demonstrates a relentless commitment to safeguarding their interests and ensuring accountability. The actions of this DAO might set a precedent in the NFT space.
However, will this movement be successful? Time will tell. For now, we have a precedent in the NFT space where communities are more vigilant and actively seek rectification in cases of mismanagement.