DEFIFINANCE

The largest crowdfunding in history! ConstitutionDAO raises over $40 million, despite losing the auction for the US Constitution at Sotheby's.

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The largest crowdfunding in history! ConstitutionDAO raises over $40 million, despite losing the auction for the US Constitution at Sotheby

ConstitutionDAO is a decentralized autonomous organization aimed at acquiring the physical text of the "United States Constitution" through auction. It successfully raised over $40 million from 17,437 addresses within 72 hours; however, it ultimately did not win the bid at the Sotheby's auction and was instead won by market maker Citadel CEO Ken Griffin for $43,173,000. Despite the outcome falling short of expectations, the overall crypto community remains excited about this event.

Sotheby's Auction of the U.S. Constitution

"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America." The foundational document of the United States legal system, the U.S. Constitution, was first printed on September 17, 1787. According to Sotheby's, originally around 500 copies were printed, but only 13 copies are known to survive today, with the copy auctioned being one of the two not in institutional collections.

What is ConstitutionDAO?

  • Purpose: A decentralized autonomous organization (DAO) aiming to crowdfund the return of a copy of the U.S. Constitution to the people.
  • What happens if the bid is successful: Upon reaching consensus, the copy will be publicly displayed, and the collective will share the cost of ownership.
  • If the bid fails, will donations be refunded: Donors can redeem ETH, but Gas Fees will be deducted.
  • Will the DAO dissolve if the bid fails: Donors can choose to continue providing funds to enable the DAO to continue its mission of preserving public historical artifacts.
  • Will donors own the winning item: No, donors will receive governance tokens PEOPLE, rather than fragmented ownership. Governance token votes can serve as suggestions for the DAO.

ConstitutionDAO Fundraising and Auction Results

As of 11/19, ConstitutionDAO raised 11,600 ETH from 17,437 addresses, with a median donation of $206.26, totaling $49,835,506. Post-closing, the wallet continues to receive additional funds. Citadel CEO Ken Griffin won the auction with $43,173,000, stating post-auction, "The U.S. Constitution is a sacred document that embodies the rights of every American and all who aspire to be, which is why I wanted to ensure that our copy of the Constitution is available for all Americans and visitors to view and appreciate."

ConstitutionDAO noted that while not the anticipated outcome, history was made, marking the largest crowdfunding for a physical item in history and Sotheby's first collaboration with the DAO community. They remind donors they can redeem donations and thank institutional partners: Alameda Research, Endaoment, FTX US, Juicebox, Morning Brew, SyndicateDAO.

Reactions and Next Steps with Substantial Funds?

Notable figures including a16z executives and Beeple have expressed admiration for ConstitutionDAO. Yang Mindao, founder of the Chinese community dForce, also praised the significance of this initiative on Twitter.

Cryptocurrency research institution Messari founder Ryan Selkis quickly thought about the next steps, suggesting that with so much funding, the DAO could decide the future use of funds through voting and potentially become a political lobbying organization advocating for crypto-friendly policies. However, former Compound legal counsel Jake Chervinsky believes that such actions would go against the spirit of the DAO.