PEOPLE, ConstitutionDAO’s governance token, increased in value by nearly 200% in just 24 hours despite its trading volumes falling off the cliff in the same period, data from CoinMarketCap shows.
The cost of buying 1 PEOPLE token increased to $ 0.0321 compared to $ 0.0110 24 hours ago. Conversely, its trading volumes on cryptocurrency exchanges fell nearly 100% to over $ 181,000, reflecting that the ongoing bullish move had very little support behind it.
The story so far
The huge bullish momentum in the PEOPLE market came at a time when users must have ditched it for Ethereum’s native blockchain token, Ether (ETH).
This is primarily because ConstitutionDAO, a decentralized autonomous organization (DAO), raised more than $ 47 million worth of Ether through the sale of PEOPLE. He wanted to use the proceeds to buy a rare copy of the United States constitution, but lost his bids to billionaire Citadel CEO Ken Griffin at a recent Sotheby’s auction.
Without a Constitution and with $ 47 million worth of ETH funds in their multi-signature wallets, ConstitutionDAO decided to refund the full amount to its donors. But many in DAO’s Discord community emphasized that they didn’t want to pay the high gas rebate fees.
In response, The ConstitutionDAO team provided their donors with two options: either they could return their PEOPLE tokens for ETH (minus gas fees), or they could choose to receive a new governance token, dubbed We The People (WTP), without having to pay. a gas tariff, at the rate of 1 PEOPLE per WTP.
For everyone who wants to continue riding with us, you’ll also be able to sign a message (without paying for gas) committing your funds to the DAO’s treasury and get our governance token $ WTP (We The People) back.
Of course, you can also do nothing and see how things play out
– ConstitutionDAO (,) (@ConstitutionDAO) November 20, 2021
For all those who want to continue traveling with us, they will also be able to sign a message (without paying for gasoline) committing their funds to the DAO treasury and recover our government token $ WTP (We The People).
Of course, you also can’t do anything and watch things unfold.
In the meantime, in the event that donors do not choose to require refunds, ConstitutionDAO will retain the principal.
As a result, DAO will be able to keep a portion of the ETH in its vaults as long as donors convert their PEOPLE to WTP or ignore any refunds. So if the value of Ether rises, the price of WTP will likely rise altogether.
Therefore, the current PEOPLE price rally suggests that traders have chosen to hold or buy it in secondary markets to obtain the WTP token at a later stage.
so, in my medium thoughtboi post, is it more impactful that @ConstitutionDAO raised $ 40m + or that it pumped 4x as a memecoin after dissolving? https://t.co/ohX8SafyST
– Mike DAOdas (@mdudas) November 25, 2021
Juicebox a clear winner
ConstitutionDAO has not released any specific reason why it wants donors to refund their PEOPLE tokens through a new governance asset, given that it already announced that it would close after failing to win the rare copy of the US Constitution.
David Gerard, author of the book Attack of the 50 Foot Blockchain and a news blog of the same name, noted that Juicebox.money, another DAO that processes payments for ConstitutionDAO, generally collects 5% of all money generated by the project.
So Juicebox may have already made at least $ 2.35 million through the ConstitutionDAO crowdfund and may earn more from upcoming WTP-funded ventures, if any.
“Not a bad payday,” Gerard wrote.
Auction is lost. $ 40 million worth of $ PEOPLE is now essentially worthless after the people who minted it say it no longer has a purpose. They talk about starting a new token, $ WTP, with a new, nebulous purpose.
– Sam Rose (@samwhoo) November 24, 2021
The auction is lost. $ 40 million in $ PEOPLE is now essentially useless after the people who coined it say it no longer serves a purpose. They talk about starting a new token, $ WTP, with a nebulous new purpose.
For now, The outgoing ConstitutionDAO team has announced senior contributor Brian Wagner and Web 3.0 expert Liminal Warmth as the new project leaders.
Meanwhile, the community has been voting on how it could implement its Ether-backed WTP reservations into other projects, with ideas ranging from finding a copy of the Bill of Rights to making a new Web 3.0 constitution from scratch.
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