constitutiondao tries to buy the constitution

A “financial flash mob” raised over $40 million for a rare copy of the U.S. Constitution…

In September 1787, a group of delegates gathered in Philadelphia to sign the U.S. Constitution.

This past week, a hastily organized crypto-collective tried to buy it.

The group, called ConstitutionDAO, is an experiment led by thousands of cryptocurrency fans who have pooled their money to make a bid on a rare original printing of the Constitution.

News of the group’s bid set off a frenzy of memes and the money came in so fast that within 24 hours, the group had raised $4.5 million worth of Ether.

The Verdict

The document, one of only 13 surviving copies, was auctioned on Thursday by Sotheby’s, which estimated it will sell for $15 million to $20 million, ended up auctioning off for a record $43 million and unfortunately the group was outbid and failed to purchase the historic document.

As of Thursday it is not quite clear how much the group raised. Many wondered why organizers stopped short of making the winning offer in a heated bidding war that gaveled at $41 million.

One organizer in the group’s Discord server said that they stopped the bidding where they did because there wouldn’t have been enough money left over to account for the “proper care and maintenance” required for custody of the Constitution.

Future of Organizations

The ConstitutionDAO is an example of what’s known as a “decentralized autonomous organization,” a kind of group that is governed with cryptocurrency tokens and blockchain-based “smart contracts” instead of traditional corporate boards and bylaws.

DAOs — which have been compared to chat rooms with bank accounts — have been gaining traction recently. Crypto advocates believe that they will become a popular form of organization in the coming years — a kind of leaderless online collection that can pop up in an instant to build products and make investments.

ConstitutionDAO joins a long list of DAOs pooling funds to buy real-world assets. In July, PleasrDAO bought a copy of the Wu-Tang Clan album once owned by Martin Shkreli.

In the future many business and political organizations could be replaced using a similar structure.

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