ConstitutionDAO (PEOPLE) news

What Is ConstitutionDAO?

ConstitutionDAO is a decentralized autonomous organization (DAO). Established in November 2021, this DAO was formed with a singular and historic objective: to purchase an original copy of the United States Constitution. Utilizing the Ethereum blockchain, ConstitutionDAO epitomized the power of collective action in the digital age, rallying a vast number of contributors who collectively raised a staggering $47 million in Ether cryptocurrency. Despite this impressive feat, the DAO faced a setback when it lost the Sotheby's auction with a bid of $43.2 million, falling short against a higher bid. This event marked a significant moment in the intersection of cryptocurrency, collective action, and historical artifacts.

The aftermath of the auction was as noteworthy as the bidding itself. ConstitutionDAO announced its intention to refund the contributions, though this process was complicated by the inherent transaction fees associated with Ethereum. This led to a situation where some contributors faced high fees, sometimes exceeding the value of their initial donation. The DAO's journey, while short-lived, captured the imagination of many and demonstrated the potential of DAOs to mobilize resources and people for unique causes. It also highlighted the challenges and complexities inherent in such decentralized fundraising efforts.

Resources

Official Website: https://www.constitutiondao.com/

How Does ConstitutionDAO Work?

ConstitutionDAO leveraged the Ethereum blockchain to create a decentralized platform where individuals could contribute funds with the collective goal of acquiring a historical artifact. The use of cryptocurrency, specifically Ether, allowed for a swift and broad-based fundraising campaign, tapping into a global network of crypto enthusiasts and history buffs alike. The DAO's structure enabled a democratic and transparent process, where each contributor became a part of this unique endeavor.

After losing the auction, the DAO faced the complex task of refunding the raised funds. This process was hampered by the high transaction fees on the Ethereum network, which posed a significant burden for many contributors. The refund process underscored the practical difficulties of managing large-scale financial transactions on blockchain platforms, especially when dealing with refunds and the variable costs of transaction fees.

What Is PEOPLE Token?

PEOPLE is the native token of ConstitutionDAO. Initially, these tokens were integral to the DAO's crowdfunding campaign, representing the contributions of individuals in the collective effort to purchase the Constitution. With a total supply of 5.06 billion, all PEOPLE tokens are currently in circulation.

Following the unsuccessful bid and the subsequent disbanding of ConstitutionDAO, the PEOPLE token currently lacks utility or purpose. However, it can be redeemed for ETH at the same rate as during the crowdfunding phase.