A crypto “organization”, ConstitutionDAO, has raised ether (ETH) to bid the original print of the U.S. Constitution. The DAO lost its bid at Sotheby’s auction, which sold the paper for $43 million.
ConstitutionDAO has emerged quickly within a very short time, with its Twitter account starting this month. ConstitutionDAO’s single goal is to bid a copy of the original print of the U.S. Constitution at Sotheby’s auction.
Initially, Austin Cain and Graham Novak started ConstitutionDAO in Discord, and now there are over 19,000 members.
Additionally, ConstitutionDAO successfully received 10,728 ether (ETH) from the crypto community, with as many as 17,437 donors and a median donation size of US$206. Interestingly, 13% of ConstitutionDAO’s donors are using ether for the first time.
According to ConstitutionDAO’s plan, each contributor would receive governance tokens $PEOPLE proportionately. The DAO could also mint fractional NFTs from the paper, enabling donors and others to hold “a piece of the U.S. Constitution”. Earlier, PleasrDAO broke the Doge meme image into fractional NFTs with a valuation of $300 million.
Behind ConstitutionDAO: FTX, Alameda Research... SBF?
ConstitutionDAO stated that donors can get a refund – effectively minus gas fees. For those who don’t want a refund, ConstitutionDAO will decide how to use the remaining fund later.
Behind the ConstitutionDAO’s bid on the U.S. Constitution, you may wonder: what is a DAO? How does a Decentralized Autonomous Organization work?
You can think of a DAO as a company with a boss or a CEO. The organization is operating on the blockchain network. Decision-making in a DAO is open and transparent, and the decisions will be automatically implemented via smart contracts.
An increasing number of DeFi platforms have built their own DAOs, making the DAO another market hit following NFTs and metaverse. Examples include BanklessDAO, OlympusDAO, Gitcoin, NounsDAO, PleasrDAO, etc.
What’s more interesting is that crypto derivatives exchange FTX, and quantitative trading firm Alameda Research are behind ConstitutionDAO. The two firms are both under crypto billionaire Sam Bankman-Fried (SBF).
In an announcement, ConstitutionDAO shares its gratitude towards FTX US, Alameda, and SyndicateDAO for their support. For one, 13 core contributors of ConstitutionDAO have to set up an account in partnership with FTX US. The exchange helped them to convert their ether into fiat and pay Sotheby’s via wire transfer.
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