ConstitutionDAO Failed To Buy The US Constitution At Sotheby’s

ConstitutionDAO failed to buy the US Constitution at a Sotheby’s auction and now has to consider what to do with the $45 million it raised. The DAO could offer refunds as an option or keep the funds for future projects but let’s find out more about it first in today’s cryptocurrency news.

ConstitutionDAO is a decentralized autonomous organization with more than 17,000 contributors and $45 million in funds but now faced a number of challenges since its inception two weeks ago. A week ago, the DAO lost the auction at Sotheby’s to purchase a copy of the US constitution and the Citadel CEO Kenneth Griffin outbid the DAO, purchasing the document for $41 million.

The DAO managed to raise over $45 million but was unable to compete against Griffin’s final bid because of the expenses of the platform like fees of 13.9% and the costs to preserve and transport the historic document. This caused a lot of confusion and frustration as some felt the DAO was not transparent enough with the contributors closing the fundraising too early. Now that the auction is over, ConstitutionDAO is fracturing as some members want their funds back while others urged the DAO to pursue a new project with the funds remaining. Since it started, ConstitutionDAO maintained that if it lost the auction, all of the contributors will be refunded but what many donors didn’t realize was that the high gas fees on the network means they cannot get the full donation amount returned.

Others however don’t want to pay the refund gas fees but they hope the DAO will pursue another artifact or cause. The DAO also announced it will give contributors a choice and they can either receive refunds to remain in the community and get a new “We The People” governance token or decide later. Those that will remain in the DAO Will be able to vote on other governance matters in teh future. The group’s organizers wrote:

“We’ll soon be proposing a plan that outlines governance, vision, and values, for the community to review and comment on.”

It’s not clear yet what the DAO’s next project will be but since it failed to purchase the constitution, everything could backfire from now on. The DAO Is taking some time to plan out its next steps and the newly announced leaders Brian Wagner and Liminal Warmth are working on a plan to go forward. While the DAO’s next project has yet to be announced, the community has even more ideas as someone to pursue a copy of the Bill of Rights or the Declaration of Independence.