PEOPLE, ConstitutionDAO’s governance token, gained nearly 200% in value in just 24 hours, according to CoinMarketCap, despite a drop in trading volume over the same period.
The cost of buying 1 PERSONAL token increased from $ 0.011 24 hours ago to $ 0.0321. In contrast, trading volume on the exchanges fell nearly 100% to over $ 181,000, reflecting a sustained upward move that is finding little support.
PEOPLE 24-hour price history | Source: CoinMarketCap
History so far
The big upward momentum in the PEOPLE market came at a time when users were trading it in for the Ethereum blockchain’s native ETH token.
This is mainly because ConstitutionDAO, a decentralized autonomous organization (DAO), has over $ 47 million in ETH crowdfunding via the PEOPLE sale. They wanted to use the proceeds to buy a rare copy of the U.S. Constitution, but recently lost in a Sotheby’s auction against billionaire Citadel CEO Ken Griffin.
Screenshot from the ConstitutionDAO | community group Source: Discord
Since ConstitutionDAO was unable to buy the constitution and keep $ 47 million in ETH in a multi-signature wallet, ConstitutionDAO decided to refund the donors in full. But many in the DAO community on Discord stress that they don’t want to pay too high a gas refund fee.
In response, the ConstitutionDAO team is offering donors two options: they can either return the PEOPLE token for ETH (minus gas fees) or opt for a new governance token called We The People (WTP) that does not pay a gas fee must, at the rate of 1 PEOPLE = 1 WTP.
If donors do not request a refund, ConstitutionDAO will keep this capital.
As such, the DAO can keep part of the ETH in its vault as long as the sponsors convert PEOPLE into WTP or do not receive any chargebacks. So if the value of ETH goes up, the price of WTP will likely go up too.
Hence, the current PEOPLE price rally implies that traders are choosing to hold it on the secondary market or buy it to hold the WTP token later.
Juice box is the winner
The ConstitutionDAO has not given a specific reason as to why it would like donors to return PEOPLE tokens via a new governance asset after announcing it will close after failing to win a rare copy of the Constitution.
David Gerard, author of the book Attack of the 50 Foot Blockchain and a news blog of the same name, notes that Juicebox.money, another DAO that processes payments for CharterDAO, typically collects 5% of the total coverage amount.
As a result, Juicebox may have raised at least $ 2.35 million through crowdfunding from ConstitutionDAO and could earn more from upcoming WTP-funded projects, if any. Gerhard wrote:
“Payment is not bad”.
A Twitter user comment:
“Didn’t win the auction. The $ 40 million PEOPLE are essentially worthless now after their minters said they were no use. You are talking about starting a new WTP token with a new, illusory purpose. “
The outgoing ConstitutionDAO team has now announced Brian Wagner and Web 3.0 expert Liminal Warmth as the new heads of the project.
In the meantime, the community has voted on how to use ETH-sponsored WTP reserves for other projects, with ideas ranging from a copy of the Bill of Rights to a copy of the Bill of Rights.
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According to Cointelegraph