PEOPLE ConstitutionDAO

What is ConstitutionDAO?

ConstitutionDAO is a decentralized autonomous organization (DAO) that was created to raise funds to buy a privately-owned copy of the United States Constitution and bring it to the public.

Key Features

• Purpose: The main goal was to purchase a historic copy of the US Constitution and make it accessible to the public, rather than letting it be owned by a single wealthy individual.
• Funding: It used blockchain technology to raise funds transparently, allowing contributors to see the fundraising progress.
• Ownership: If successful, the DAO would have owned the document, and token holders would have had the right to vote on its future, such as where it would be displayed.
• Refunds: After losing the auction, the DAO provided full refunds to contributors, with the option to keep the tokens for potential future use.

How It Worked

• Blockchain Technology: All transactions were recorded on a blockchain, ensuring transparency and security.
• Smart Contracts: The DAO used smart contracts to automate decisions and manage funds.
• Token Distribution: Contributors received tokens ($PEOPLE) in exchange for their contributions, which could be used for voting rights within the DAO.

Legacy

• Community Engagement: The project engaged a large community of contributors and sparked interest in DAOs and their potential applications.
• Future Projects: Although ConstitutionDAO itself was wound down, the tokens remain, and parts of the community are exploring ways to incorporate them into future projects.

Overview of ConstitutionDAO

ConstitutionDAO is a token that was originally created as a DAO for the purchase of a copy of the first political constitution of the United States of America. Here are some key points about its pros and cons:

Pros

• Historical Significance: ConstitutionDAO was a groundbreaking project that aimed to purchase a rare copy of the U.S. Constitution, showcasing the potential of DAOs in crowdfunding and collective asset management.
• Community Engagement: The project managed to raise nearly $47 million from approximately 17,500 investors, demonstrating strong community support and the power of decentralized fundraising.
• Innovative Approach: ConstitutionDAO's use of a DAO to pool resources for a collective purchase marked an important milestone in the evolution of the Internet and finance.
• Token Appreciation: Despite not achieving its primary goal, the PEOPLE token has appreciated in value over time, making it a notable investment opportunity.

Cons

• Failed Auction Bid: ConstitutionDAO lost the auction to purchase the U.S. Constitution, failing to achieve its main objective.
• Refund Challenges: The project faced difficulties in refunding contributions to investors due to high Ethereum gas fees, leading to delays and additional costs.
• Limited Utility: The PEOPLE token does not confer governance or utility rights, limiting its use beyond trading on cryptocurrency exchanges.
• Project Closure: The ConstitutionDAO project was disbanded after the auction, leaving the future of the PEOPLE token uncertain.

Founders of ConstitutionDAO

The founders of ConstitutionDAO are Austin Cain and Graham Novak, both 25-year-old finance professionals based in Atlanta. They organized the initiative via social media platforms like Reddit, Twitter, and Discord to raise funds to bid on a rare copy of the U.S. Constitution at a Sotheby’s auction.

Investors in ConstitutionDAO

ConstitutionDAO was a decentralized autonomous organization (DAO) that raised funds from a diverse group of investors. Here are some details about the investors:

• Number of Investors: The project attracted 17,437 contributors who donated to the cause.
• Types of Investors: The investors included a wide range of individuals, from small donors to larger contributors, including billionaire hedge fund manager Ken Griffin, who ultimately outbid ConstitutionDAO at the Sotheby's auction.
• Donation Amounts: The median contribution was $217, with some donors contributing much more and others less. The total amount raised was approximately $47 million in Ether cryptocurrency.
• Donation Process: Contributions were made through a multi-signature wallet controlled by 13 core contributors, mirroring the 13 original colonies of the United States. Donors received PEOPLE tokens in exchange for their contributions, which could be redeemed for Ether.

Halal Considerations for ConstitutionDAO

No, ConstitutionDAO is not halal. This is because it involves interest-bearing mechanisms and speculative elements, which are prohibited in Islamic finance. Islamic finance principles emphasize the prohibition of riba (interest) and gharar (excessive uncertainty), and ConstitutionDAO's structure does not align with these principles.

Key Points:

• Riba Prohibition: Islamic finance prohibits earning interest on money, emphasizing that profit should be derived from productive activities rather than the mere passage of time.
• Gharar Prohibition: Islamic finance also prohibits excessive uncertainty in financial transactions, requiring clear and transparent terms.
• Speculative Elements: ConstitutionDAO, like many DAOs, involves speculative elements that are not compliant with Islamic finance principles.
• Asset-Based Transactions: Islamic finance requires transactions to be backed by real assets, which is not the case with many crypto tokens, including ConstitutionDAO.