ConstitutionDAO (PEOPLE) is a decentralized autonomous organization formed in November 2021 and based on the Ethereum blockchain, with the aim of bidding on a rare copy of the U.S. Constitution at a Sotheby’s auction. The organization started as a meme on Reddit and raised $47 million in ether from nearly 17,500 contributors in less than a week but was ultimately outbid. ^[1][6][9]

Overview

ConstitutionDAO is a decentralized autonomous organization established in November 2021 with the aim of purchasing one of the thirteen surviving original copies of the U.S. Constitution at a Sotheby’s auction. The initiative raised $47 million in ether from nearly 17,500 contributors worldwide.

Despite its fundraising effort, ConstitutionDAO was outbid. The organization issued refunds to contributors, but due to Ethereum transaction fees, the refunds were less than the original contributions. ^[1][6][8]

History

ConstitutionDAO was formed in November 2021 by a group of internet users who organized via social media platforms like Reddit, Twitter and Discord. The primary objective was to raise sufficient funds to bid on a rare copy of the U.S. Constitution during a Sotheby’s auction. The initiative was led by Austin Cain and Graham Novak, both 25-year-old finance professionals based in Atlanta.

The DAO utilized Juicebox, a platform designed for early-stage DAOs, to manage its fundraising efforts. Within less than a week, ConstitutionDAO raised $47 million in ether from nearly 17,500 contributors.^[1][6][7][5]

Bidding and Auction Outcome

The Sotheby’s auction took place on November 18, 2021. ConstitutionDAO partnered with intermediaries to convert the raised ether into U.S. dollars to place the bid, as Sotheby’s did not accept cryptocurrency directly.

Despite the funds raised, ConstitutionDAO was outbid by hedge fund manager Ken Griffin, who won the auction with a bid of $43.2 million . After a brief period of confusion where some members mistakenly believed the DAO had won, a formal announcement confirmed the loss. ^[4][1][6]

PEOPLE Token

PEOPLE is an ERC-20 token issued by ConstitutionDAO on the JuiceBox decentralized crowdfunding platform. It served as a proof-of-donation token and represented governance rights within the DAO ecosystem.

1. Governance Rights: Holders of $PEOPLE tokens had the right to participate in governance decisions of ConstitutionDAO. This included voting on important matters such as where the acquired copy of the Constitution would be publicly displayed, potentially in which museum or institution it would reside.

2. Crowdfunding Participation: During the crowdfunding phase, contributors who donated 1 ETH were eligible to claim 1,000,000 $PEOPLE tokens. This mechanism allowed participants to have a proportional stake and influence based on their contributions. ^[6][2]

Tokenomics

The tokenomics of $PEOPLE involved the following aspects:

• Initial Distribution: Tokens were distributed to contributors based on their ETH donations during the fundraising period on JuiceBox.

• Total Supply: The total supply of $PEOPLE tokens was determined by the amount of ETH raised during the crowdfunding campaign, with a fixed conversion rate of 1 ETH to 1,000,000 $PEOPLE tokens. ^[3][2]

Refunds and Challenges

Following ConstitutionDAO's unsuccessful bid in the Sotheby's auction, the organization confronted the task of managing ether refunds for its contributors. Two options were made available on the project’s website:

1. Claim: Contributors have the opportunity to claim their unclaimed $PEOPLE tokens, which will then be deposited into their respective wallets. This option enables contributors to maintain possession of their tokens.

2. Reedem: Alternatively, contributors can opt to redeem their $PEOPLE tokens. Redemption involves burning both claimed and unclaimed $PEOPLE tokens in exchange for ETH at a fixed ratio of 1 ETH : 1,000,000 $PEOPLE. This process converts $PEOPLE tokens back into their original contribution value, adjusted for Ethereum gas fees incurred during the transaction process.^[2]