{"id":207769,"date":"2021-12-13T02:00:29","date_gmt":"2021-12-13T02:00:29","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=207769"},"modified":"2022-02-20T14:37:09","modified_gmt":"2022-02-20T14:37:09","slug":"constitutiondao-the-failed-project-that-shook-the-crypto-world","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/constitutiondao-the-failed-project-that-shook-the-crypto-world\/","title":{"rendered":"ConstitutionDAO: The failed project that shook the crypto world"},"content":{"rendered":"

ConstitutionDAO is a true underdog story that gave the world an idea of what DAOs, a new form of blockchain-based community, can accomplish in the future.\u00a0\u00a0<\/span><\/p>\n

For those not familiar with the saga, here\u2019s what happened.\u00a0<\/span><\/p>\n

What is ConstitutionDAO?<\/b><\/h2>\n

ConstitutionDAO was launched on Nov. 11 by<\/span> a group of crypto enthusiasts as an attempt to raise funds via DAO to buy the first printed version of the US Constitution, on auction by Sotheby\u2019s.\u00a0<\/span><\/p>\n

This version is the last privately owned copy\u2014of only 13 copies in total\u2014of the Constitution, and ConstitutionDAO hoped to serve as to transfer it to community ownership rather than to a lone wealthy individual.<\/span><\/p>\n

By Nov. 19, ConstitutionDAO raised nearly 11,000 ETH on JuiceBox, a community funding for people and projects, or just over $45 million\u2014more than twice the estimated sale price of $20 million.<\/span><\/p>\n

Unfortunately, ConstitutionDAO lost out the auction Citadel CEO, Ken Griffin.<\/span><\/p>\n

\"\"<\/p>\n

Five days after the auction ended, ConstitutionDAO was in a state of turmoil. After several lively discussions, the organization's core contributors announced on the 24th that they were shutting down ConstitutionDAO and would refund contributions automatically.\u00a0<\/span><\/p>\n

$PEOPLE, which ConstitutionDAO gave to contributors at a rate of 1 ETH to 1 million $PEOPLE, would be of no actual use as a governance token for the DAO. However, data from Footprint Analytics showed that its token price has experienced the ups and downs driven by community users.<\/span><\/p>\n

\"Footprint
Footprint Analytics\uff1aPEOPLE Token Price<\/figcaption><\/figure>\n

The projects garnered 20,000 contributors in total.<\/span><\/p>\n

What is a DAO?<\/b><\/h2>\n

DAO is short for Decentralised Autonomous Organisation. A DAO generally has a common goal of consensus and clear core values. Its democratized voting mechanism determines the direction of the organization and how it operates.\u00a0<\/span><\/p>\n

Here\u2019s how ConstitutionDAO\u2019s DAO was defined:<\/span><\/p>\n