PEOPLE, ConstitutionDAO’s governance token, has climbed in value by nearly 200% in just 24 hours despite falling transaction volumes during the same period, according to data from CoinMarketCap.
The cost of buying a PEOPLE token has climbed to $ 0.0321, from $ 0.0110 24 hours ago. In contrast, its trading volumes on crypto 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 massive bullish momentum in the PEOPLE market came at a time when users had to ditch it for the native Ethereum blockchain token, Ether (ETH).
This is mainly because ConstitutionDAO, a Decentralized Autonomous Organization (DAO), has outsourced over $ 47 million in Ether through the sale of PEOPLE. He wanted to use the proceeds to purchase a rare copy of the US Constitution, but lost his bids to billionaire Citadel CEO Ken Griffin at a recent Sotheby’s auction.
Left without a Constitution and $ 47 million in ETH funds in its multi-signature wallets, ConstitutionDAO decided to refund the full amount to its donors. But many members of DAO’s Discord community have pointed out that they don’t want to pay the high refund gasoline fees.
In response, the ConstitutionDAO team offered two choices to their donors: 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 tax, at the rate of 1 PERSON per WTP.
For anyone who wants to continue riding with us, you will also be able to sign a message (without paying for gasoline) committing your funds to DAO treasury and getting our governance token. $ CAP (We The People) are back.
Of course you can also just do nothing and see how things go
– ConstitutionDAO (,) (@ConstitutionDAO) 20 November 2021
During this time, in the event that donors do not choose to request refunds, ConstitutionDAO will retain the capital.
As a result, DAO will be able to keep part of ETH in its coffers as long as donors convert their PEOPLE to CAP or ignore any reimbursement. So if the value of ether increases, the price of CAP will likely increase in tandem.
Therefore, the ongoing PEOPLE price hike suggests that traders have chosen to hold it or buy it in secondary markets to get their hands on the WTP token at a later stage.
so, in my average thinkboi post, is it more impactful than @ConstitutionDAO raised $ 40 million + or pumped 4x in memecoin form after it broke up? https://t.co/ohX8SafyST
– Mike DAOdas (@mdudas) 25 November 2021
Juicebox a clear winner
ConstitutionDAO has not disclosed any specific reason why it wants donors to refund their PEOPLE tokens through a new governance asset, given that it has previously announced that it will close its doors after failing to win the rare copy of the American 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, typically collects 5% of all the money earned by the project.
Related: Layer Two, Multichannel DeFi Platforms Record Record Entries As Ethereum Fees Soar
As a result, Juicebox may have already made at least $ 2.35 million from the ConstitutionDAO crowdfunding and could earn more from upcoming WTP-funded ventures, if any.
“Not too bad for a salary,” Gérard wrote.
The auction is lost. $ 40 million $ PEOPLE is now essentially worthless after the folks who hit him say he’s no longer a goal. They talk about starting a new token, $ CAP, with a nebulous new purpose.
– Sam Rose (@samwhoo) November 24, 2021
For now, the outgoing ConstitutionDAO team has announced that lead contributor Brian Wagner and web 3 expert Liminal Warmth will be the new project leaders.
Meanwhile, the community voted on how they could deploy their Ether-backed WTP reserves on other projects, with their ideas ranging from pursuing a copy of the Bill of Rights to creating a new one. Web constitution 3 from scratch.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.