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AzukiDAO, the decentralized autonomous organization (DAO) that’s behind the Azuki non-fungible token (NFT) project, is voting to retrieve 20,000 ETH from the team and wishes to hire a lawyer to file a lawsuit against the collection’s anonymous founder, Zagabond, for allegedly rugging multiple crypto projects. 

Zagabond is the founder of Chiru Labs, the parent company of Azuki. In a motion on July 2, AzukiDAO wishes to take control of the 20,000 ETH currently in the control of the founding team so that they can channel it towards the growth of the Azuki ecosystem and reward the community.

AzukiDAO Votes

When writing on July 2, voting is in progress, and most members support the proposal. AzukiDAO claims that the founding team has done nothing more besides issuing the organization’s members “a similar profile picture to that of the original Azuki holders, and nothing more.” For this reason, they are convinced that the founding team is “blatantly scamming them with empathy checks and promises.”

An extract from the proposal reads:

We have max-minted the 2e elemental beanz and are anticipating the release of a new product, as suggested by the Asian ambassador. Despite our efforts, we have only been given a similar profile picture to that of the original Azuki holders and nothing more. The Team is blatantly scamming us with empathy checks and promises.

Zagabond Accused Of Rug Pulling 3 NFT Projects

The DAO, launched in June 2023, is governed by BEAN tokens, airdropped to Azuki holders. Presently, token holders can vote on proposals that affect the project. These proposals can include fund allocations, determining the development direction, and even hiring team members. To ensure the project is sustainable, a treasury is funded by ETH donations from the Azuki team and Azuki NFT holders. 

Ethereum price on July 2 when AzukiDAO voted to sue Zagabond| Source: ETHUSDT on Binance, TradingView
Ethereum price on July 2| Source: ETHUSDT on Binance, TradingView

With AzukiDAO members voting overwhelmingly to take charge of the 20,000 ETH, it suggests that the community is demanding more from the founding team. Going by the existing sentiment, this development needs to be met. Voting statistics show that over 60% have voted for the proposal, a move that will see the founder of the Azuki NFT collection, Zagabond, be sued by AzukiDAO. Only 30% of the BEAN token holders are against the idea.

The anonymous founder, Zagabond, in May 2023, admitted to having abandoned three NFT projects, that is, CryptoPhunks, Tendies, and CryptoZunks, claiming that he was, at that time, not happy with how they were developing. His admission, considering his stature in the NFT community, stirred controversy.

Voting ends on July 3, and if the proposal sails through, Zagabond will be sued, and the team will channel the 20,000 ETH to the DAO.

Feature image from Canva, chart from TradingView

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