The AzukiDAO community, linked to the NFT brand Azuki, has proposed to recover 20,000 ETH (worth approximately $39 million) from the founder of the blue-chip NFT brand, popularly known as ‘Zagabond.’
The proposal involves hiring a lawyer to instigate legal action against Zagabond in what the community labels a ‘rug pull’ incident involving the Elementals collection.
This vote comes in the aftermath of backlash and criticism over the controversial origins of Azuki and the distribution of its native ‘Bean’ tokens.
According to the AzukiDAO community, ‘Zagabond’ conducted private sales and airdropped NFTs from the brand’s Elementals collection.
The event caused a stir within the community as the founder earned around $38 million, leading to claims of “rugging”, a term used in the crypto space to describe a fraudulent exit from a project.
The voting process is ongoing, with 88.35% votes in favor of the clawback and 11.65% against, as of the latest count.
The majority of the Azuki community has been vocal about their dissatisfaction, especially on the AzukiDAO Discord channel, which has 116 members.
Azuki has been mired in controversy over its handling of the ‘Bean’ tokens, which were minted two days ago and were meant to be airdropped to NFT holders. However, the process received widespread criticism for seemingly giving preference to private sales.
Moreover, the community has accused Zagabond of ‘rugging,’ a term that refers to a form of scam where developers abandon a project after making substantial profits.
The Azuki community hopes that the proposal will lead to the return of the transferred ETH, and in the process, restore the brand’s reputation and value. This incident underscores the power of DAOs in holding project founders accountable for their actions.
Also Read: Long-Term Azuki Holders Selling Surge of 817%: Nansen Report
