- PEOPLE tokens of ConstitutionDAO has seen a tremendous surge throughout 24-hours
- Observing the trading volume of the assets, analysts deemed that the ongoing bullish rally had very little support behind it
- ConstitutionDAO gave a choice to the contributors of taking a new governance asset for each PEOPLE tokens
- The ongoing surge in PEOPLE price is hinting that traders have been choosing to hold it or buy it from the secondary markets
PEOPLE, the governance token of the ConstitutionDAO, has been skyrocketing. Over the past 24-hours, the token has gained more than 200%, even though the total trading across all the crypto exchanges plunged drastically. According to data from the CoinMarketCap, PEOPLE was trading at the price level of $0.0110 24-hours before the surge. Notably, after the price skyrocketed, the tokens began to trade near the price level of $0.0321. Moreover, the total trading volume of the tokens across all the exchanges fell off the cliff indicating the ongoing bullish rally had very little support behind it. However, at press time, the token is trading at the level of $0.02686.
Why is ConstitutionDAO giving WTP for PEOPLE?
Experts and researchers in the cryptosphere had noted that the enormous upside sentiment in the PEOPLE market came when users dumped the token for the Ether blockchain’s native token. Primarily such a scenario was observed as ConstitutionDAO, a decentralized autonomous organization (DAO), crowdsourced more than $47 million in Ethereum via the sale of the governance token.
Following the crowdsource funds, the DAO has plans to use the proceeds to acquire a rare copy of the US constitution from a recent Sotheby’s auction. However, ConstitutionDAO lost its bids to billionaire Ken Griffin, the chief executive officer of Citadel.
Indeed, ConstitutionDAO is now left with no constitution and millions of dollars worth of Ethereum funds in its multi-signature wallets. Hence, the DAO decided to refund the entire $47 million to its donors. However, many in the organization’s community underscored that they are not willing to spend the high refund gas fees.
Following the scenario, the ConstitutionDAO team offered two choices to its donors. Either the contributors can return their governance token for Ethereum coins. Or the members can also opt to receive a new governance token known as We The People (WTP). Notably, obtaining WTP for 1 PEOPLE will not require the users to pay any gas fee. Ultimately, if the DAO members are not choosing to demand refunds, the ConstitutionDAO will retain capital.
How will retaining capital help the DAO?
According to the brains behind ConstitutionDAO, the organization will now be able to keep a portion of ETH in its vault by offering two choices. Indeed, the ETH tokens can be retained until the contributors convert their PEOPLE tokens to WTP or ignore any reimbursements. Hence, if the value of the Ether coins will boom, the price of WTP will also surge in tandem.
Following the aforementioned case, it seems the ongoing surge in PEOPLE price is hinting that traders have been choosing to hold it or buy it from the secondary markets. Such measures will help the traders get a hold of the WTP token at a later stage.
Why does the DAO seek PEOPLE’s reimbursement?
It is yet to be revealed why ConstitutionDAO wants PEOPLE holders to reimburse their tokens. However, it has already been announced that the organization would shut down after winning the United States Constitution’s rare copy. On the other hand, the DAO members are voting on deploying its Ethereum-backed WTP reserves on other projects. The ideas range from pursuing a copy of the Bill of Rights to making a new Web 3.0 constitution from scratch.