ArenaDAO's Governance Token Increase Nearly 50% During Voting about Authorize Paradigm Purchase
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On Thursday, a voting process commenced for the sale of 15% of the entire supply of ARENA's governance token to Paradigm, a cryptocurrency investment company.
ArenaDAO is a decentralized autonomous organization (DAO) built on the Ethereum blockchain. It is a community-driven platform that aims to provide a decentralized solution for esports tournaments and gaming events.
ArenaDAO allows users to create and participate in tournaments, earn rewards, and vote on the platform's future direction. The DAO's governance model is based on a token-based system, where token holders have voting rights and can propose changes to the platform. ArenaDAO aims to create a fair and transparent ecosystem for esports where all participants have a say in decision-making.ArenaDAO's features include:
Figure 01. ArenaDAO Key Features.
ArenaDAO's Governance Token, ENA, saw a large increase in value, rising 11.12% in the past hour and 48.99% in the past 24 hours. The increase followed a vote to permit Paradigm, a crypto investment firm, to acquire 150 million ENA tokens, or 15% of the total supply, for $6 million USDC.
Figure 02. ArenaDAO's Governance saw a large increase in value.
According to Dex Screener, the token reached 7.9 cents on Thursday, resulting in a fully diluted market capitalization of $79.8 million, considering all tokens that will be released into circulation.
However, if valued at Paradigm's purchase price of ARENA, the token's fully diluted valuation would be $40 million. GeckoTerminal reports that the token's 24-hour trading volume is around $61,000.***1636524072392699908***
Earlier Thursday, the voting period for ArenaDAO began on the blockchain. So far, 9 addresses have voted, and all have shown unanimous support for allowing the DAO to sell its tokens to Paradigm. According to data from Nansen, there are currently 142 unique addresses holding ARENA, representing a 10% increase since Monday.
According to the on-chain vote, if the proposal is approved, the sale of $6 million worth of tokens to Paradigm will be authorized, and the funds obtained will be used as working capital for the growth of Code4rena by the DAO. The voting period will end on March 23, exactly one week from now.According to the person who proposed the governance proposal, they stated, "We are thrilled to have the expertise of Paradigm to help Code4rena achieve our shared goal of making the web3 ecosystem more secure and rewarding all contributors." As per Chainalysis, DeFi protocols were hacked in 2022, and $3.8 billion was stolen.Over the last 15 hours, a contract designed to lock up Code4rena tokens, identified by Nansen, transferred 55 million tokens to five different addresses. Two of these five addresses are taking part in the current vote. Code4rena is a security audit platform that hosts contests for smart contracts and guarantees payouts for audit contests, according to its technical documents. Last year, 46 users earned over $40,000 for discovering vulnerabilities in security contests organized by Code4rena, according to data from the platform's leaderboard.Explore more crypto insights and trending news with our Blogchain.Meanwhile, play trading games and earn real tokens with CryptoSim - A virtual Trading Game.