On November 11, 2021 (Singles’ Day), a group of passionate cryptocurrency enthusiasts jointly launched an organization called ConstitutionDAO, aiming to raise funds to bid for a Rare copy of the United States Constitution. This copy of the Constitution is one of only 13 in existence and has important historical and cultural significance. The goal of ConstitutionDAO is to prevent the rich from monopolizing this precious cultural relic and ensure that it can be shared by more people.
Crowdfunding successes and failures
Before the auction day, ConstitutionDAO successfully attracted 17,437 contributors on the JuiceBox platform and raised nearly 11,000 ETH, equivalent to more than 47 million US dollars. This amount not only exceeded the expected $20 million closing price, but also showed the enthusiasm and support of community members for this goal. However, while the ConstitutionDAO effort was undoubtedly a successful crowdfunding attempt, it ultimately failed at auction and a copy of the Constitution was successfully bid by Citadel CEO Ken Griffin.
After the auction, ConstitutionDAO faces huge challenges. As the goal was lost, discussions within the organization became intense, and finally five days after the auction ended, core contributors announced the closure of ConstitutionDAO and refunded contributors indefinitely. Although the PEOPLE token seems to have lost its practical use at this time, its price has experienced great ups and downs driven by the community, showing the complexity and vitality of the decentralized finance (DeFi) ecosystem.
The significance of PEOPLE tokens
PEOPLE tokens are governance tokens issued by ConstitutionDAO for its contributors. Every user who successfully donates will automatically receive PEOPLE tokens, and 1 ETH is equivalent to 1 million PEOPLE. Although ConstitutionDAO failed to achieve its original intention, the PEOPLE token became a symbol representing the joint efforts and vision of community members. This event is not only a major feat in the history of DAO, but also provides important lessons for future decentralized organizations.
Comparison between the organizational form of DAO and traditional organizations: The success and failure of ConstitutionDAO reflect the significant differences between DAO and traditional organizational forms. First of all, DAO brings a group of ordinary people together and subverts the way traditional organizations operate. Through Internet platforms such as Discord and Twitter, members can communicate and collaborate quickly and efficiently without gathering face to face. This global, permissionless feature enables DAO to break through geographical restrictions and form a more open and inclusive community.
Secondly, judging from the consensus of the organization, the goal of ConstitutionDAO is to return the constitution to the people. Participants chose the DAO method to respect and protect the first Constitution in American history, believing that this precious document should be shared by all people. This concept not only promotes the success of crowdfunding, but also provides new ideas for future decentralized governance.
Finally, in terms of the ownership of rights, DAO emphasizes the participation and decision-making rights of community members. If the auction is successful, members of ConstitutionDAO will be able to vote on how to display the copy of the constitution; even if the auction fails, the whereabouts of the funds will be decided by community discussion. The return of this right reflects the core value of decentralized governance.
future outlook
Although ConstitutionDAO's attempt failed to achieve what it hoped for, the power and potential it demonstrated cannot be underestimated. This event brought together nearly 20,000 participants from all over the world to work towards the same goal, demonstrating the collective wisdom and action capabilities of decentralized organizations.
In the future, with the continuous development of blockchain technology, DAO will show its value in more fields. By ensuring that the operation of each line of the agreement strictly follows the code, DAO can effectively solve the problem of trust between people and realize the concept of "Code is law". This feature provides a solid foundation for decentralized governance, giving it advantages that traditional organizations cannot match in terms of transparency and fairness.
Overall: The story of PEOPLE tokens and ConstitutionDAO is not only a legend in the field of cryptocurrency, but also an important inspiration for the future development of decentralized organizations. As more and more people realize the potential of decentralized governance, future DAOs will likely play a key role in more social, economic, and cultural fields. Regardless of the final fate of the PEOPLE token, this attempt has provided us with valuable experience that is worthy of our in-depth thinking and reference.