ConstitutionDAO Will Shut Down And Refund Investors: Report

ConstitutionDAO will shut down officially and will refund the investors with their ethereum after losing an auction for the US Constitution so let’s read more in today’s cryptocurrency news.

After five days of uncertainty, the decentralized autonomous organization ConstitutionDAO will shut down its operations and will refund the investors with their invested Ethereum as the website states:

“We believe this project has run its course.”

The DAO has formed a month ago with the goal of purchasing a copy of the US Constitution which was auctioned on Sotheby’s a few days ago. Despite raising over $45 million, the DAO failed to win the auction and lost to Citadel CEO Ken Griffin. A lot of the observers were frustrated during the auction because the core contributors of the DAO didn’t communicate the bidding strategy or who will bid on behalf of the investors and the DAO. Today, the DAO representatives shared on Twitter that they don’t have the bandwidth to get the entire community of over 17,000 contributors into a new project:

“We have determined that building and maintaining an ongoing project is not something that we as a core team are able to support, given the technical and administrative requirements of doing it properly.”

The community was in a state of unrest since the lost auction with many vocals in the server made suggestions for the future of the DAO and some contributors even demanded their refunds immediately while others didn’t want to pay for the high Gas fees again in order to be refunded so they wanted from the DAO to invest their money into something else. Things seemed hopeful for a moment over the weekend when the DAO’s core contributors appointed a new leader to take over the future of the group but now we can see that the ConstitutionDAO will shut down and become a relic of the past.

As recently reported, 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.