ConstitutionDAO Rolls Out New Plans After Failing To Secure Document At Sotheby’s

As reported by TheCoinrise, ConstitutionDAO launched less than two weeks ago, and ever since then, the decentralized autonomous organization (DAO) has experienced a good number of challenges. Quickly amassing more than 17,000 contributors and $45 million in funds in such a short period, the DAO saw its first major heartbreak when it failed to secure a copy of the US Constitution at Sotheby’s auction last week. Citadel CEO Kenneth Griffin outbid the DAO to purchase the historic document for $41 million.

ConstitutionDAO Begins Fracturing

Despite raising over $45 million ahead of the auction, ConstitutionDAO was still unable to outbid Griffin’s final bid. This left a lot of contributors in frustration who thought the DAO were not transparent enough it closed the fundraising too early. As it would turn out, the failure was due to hidden expenses such as Sotheby’s auction fee of 13.9% and the costs to preserve and transport the historic document.

Now that the auction is over however, ConstitutionDAO has started fracturing. While some members are urging the DAO to divert all that capital into a new project, others are demanding refunds. Recall that all along, ConstitutionDAO kept insisting that if it lost the auction, all contributors would be refunded. What many of the contributors new to the Ethereum ecosystem didn’t know, however, is that the network’s high gas fees would mean that no one gets their full donation amount back.

So there’s presently a dispute of interests amongst the donors. While many can’t wait to get their pro-rata refunds, others have no interest in paying the refund gas fees. They would rather see the DAO pursuing another historical artifact or cause.

The Firm Responds

ConstitutionDAO has now responded to the issue on ground stating it will allow contributors to make a choice. It’s either they receive refunds, remain in the DAO and receive a new “We The People” governance token or decide at a later date. Those who choose to remain in the DAO will be able to vote on future governance matters.

“We’ll soon be proposing a plan that outlines governance, vision, and values, for the community to review and comment on,” the group’s organizers wrote on Twitter.

Although it is not exactly clear at the moment, what the DAO’s next project will be, however, the DAO is taking some time to plan out its next steps.