The basis for cryptocurrency communities goes as broad as the imagination of crypto enthusiasts. Constitution DAO is one exciting project that brings people together. BC.GAME is partnering with this project for this reason. Online gambling enthusiasts know a lot about emergent coins, especially on BC.GAME. The crypto landscape is full of exciting projects, ranging from ‘meme coins’ purely speculative to serious projects aiming to disrupt traditional projects. Constitution DAO feels like something in the middle of these two polar ends. It may have a serious theme but also has a speculative side. This project caught the crypto community’s attention when it had a wild stretch in mid-November 2021.
About Constitution DAO
If you got a nickel every time an American Politician mentioned the Constitution, you would be on a luxury vacation on one of the most exclusive beaches. It is a permanent fixture in American civil discourse. The age of the founding fathers conjures ideas of freedom and the pursuit of happiness, which are vital ideals. The creators of Constitution DAO banked on this reputation. Anyone still doubting the viability of the blockchain community network effect got a glimpse of what is possible. Constitution DAO coalesced around buying a rare first-edition copy of the U.S. constitution. Within five days in mid-November, this organisation had raised approximately $47 million worth of Ether. It all happened through social media crowdfunding. This group’s success has struck the imagination of many crypto believers.
The immortal words that form the preamble of the U.S. Constitution, “We the People,” inspired the token name. Those seeking to participate in this project had to purchase PEOPLE tokens at a rate of $4,000 in Ether for a million tokens. Constitution DAO raised funds intending to purchase the rare copy of the Constitution at a Sotheby’s auction on November 18th, 2021. Sotheby’s is a multinational arts company with its headquarters in New York. The DAO would then turn into a formal non-profit. At the time, this idea was enough to inspire the masses into action. Art auctions are one of the most exclusive groupings in the world. They are providing a channel for ordinary people to upend such clubs. Unfortunately, the idea did not materialise. Constitution DAO was unsuccessful in its bid. However, like many powerful ideas, it has endured.
What is a DAO?
The term DAO is short for Decentralised Autonomous Organisation. A DAO records membership on the blockchain and allows people to organise without a centralised authority. Members participate in a genuinely democratic setup and vote on the organisation’s decisions. DAO made virtual decision-making cool long before Zoom became a household name. The essence of DAOs is building a community that can function truly decentralised manner. DAOs have become popular in the era of Ethereum projects that are innovation hubs. Typically, members get votes proportional to their token holdings.
Therefore, the more PEOPLE a person has, the more they can participate in Constitution DAO decision-making. DAOs could be the future of digital commerce. Think about it; an obscure group manages to raise millions of dollars overnight off the power of a simple idea. This task would take pedigreed financiers many weeks of strategy and having to give up control of their vision to an undeserving benefactor. Instead, DAOs allow the coming together of people to participate and benefit.
Constitution DAO: What’s next?
The failure of the bid was an unfortunate event. Some in the DAO could not figure out what would come next because the purchase of the Constitution seemed like an end in itself for the group. There were debates among leaders on this DAO on what to do next. Some considered keeping the group intact to bid for a separate valuable item. However, there was no consensus on this front. Others believe in the original plan, and after its failure, everyone should get a refund o their money. However, giving back the funds is not a straightforward process. There are conversion fees for cryptocurrencies, and small-scale token purchasers may consume all their contributions in transaction fees.
The average purchase was around $200, which would affect many contributors. The fascinating thing was that Constitution DAO (PEOPLE) kept rising post-auction. This event showed the uniqueness of cryptocurrencies. This project would be in the mud if this were any other asset class. The DAO reached record highs in subsequent weeks and occasionally reached hundreds of millions in daily trade volumes. It would seem absurd to some, but it is totally in stride for crypto. The success of meme coins like Dogecoin put shins in perspective. There may be a disconnect between the fundamental value of cryptocurrency and its market value. That hasn’t seemed to dissuade more people from purchasing Dogecoin, or in this case, Constitution DAO (PEOPLE).
Looking Forward
Cryptocurrency has undoubtedly crossed into popular culture. The premise of Constitutional DAO rising further after the failed auction is purely in market behaviour. Some may see the idea as most important even though it did not meet its initial goal. PEOPLE holders don’t seem to be up in arms, with some doubling down on their initial investment as this project takes a life of its own. It could be yet another DAO coin created in real time. Alternatively, the DAO could purchase a valuable asset and have that as the project’s focus. All these are the present possibilities in this dynamic sphere. BC.GAME has listed Coin DAO for this exact purpose. Crypto gambling enthusiasts can have a chance to wager using a token with potential upside. Many are waiting with bated breath to see what becomes of this DAO.
