More than 3 weeks ago, on November 18, a group of Discord users raised $ 47 million to auction off a rare copy of the U.S. Constitution, but it failed.

It’s worth noting here, however, that the token they created is called PEOPLE.

Those who contribute ETH to the ConstitutionDAO in order to auction a copy of the constitution receive PEOPLE in return. The token price hit an all-time high of $ 0.17 yesterday, surpassing the previous record of $ 0.16 set on November 27th.

PEOPLE 4-Hour Price Chart | Source: Tradingview

As the DAO leaders once said, there aren’t many use cases for this token.

“The PEOPLE tokens do not offer any rights, governance or benefits other than the exchange for ETH from the Smart Contract in Juicebox at a ratio of 1,000,000: 1.”

If the auction is successful, PEOPLE will take co-ownership of a copy of the Constitution. Instead, DAO members can only receive a refund based on their ETH minus transaction fees. While the project has received over 17,000 donations (many of which are in small numbers), some contributors have chosen not to trade their tokens and destroy them due to the current high transaction costs on the Ethereum network. Others may be reused for a different reason.

So with a maximum supply of more than 5 billion, PEOPLE is a speculative digital asset like so many other tokens before. And with an indefinite amount of returns slowly causing supply to decline, the asset becomes deflationary. In other words, tokens are becoming rarer, like copies of the U.S. Constitution.

PEOPLE is traded on several exchanges such as Uniswap, Gate.io and BKEX. But a lot of this is now happening on OKEx because it has derivatives markets where traders can bet on the future price of the token.

Coinglass, formerly known as Bybt.com, tracks the PEOPLE futures market on OKEx. By calculation, there was $ 8.66 million in liquidation on Thursday, followed by $ 2.18 million on Friday – with both bulls and bears losing money when the price moved from zero: $ 4 up $ 0.14, down to $ 0.11, rising to $ 0.17 in less than a week. The token is currently trading at $ 0.15.

Amount of PEOPLE liquidation in December | Source: Coinglass

ConstitutionDAO is a good example of a crowdfunding experiment on the web3. Despite the loss of the constitution to hedge fund manager Ken Griffin, who bought the document for $ 43 million after the DAO decided it couldn’t afford the additional costs of storage and maintenance, the event has the effect of to promote other projects. For example, the FreeRoss DAO raised $ 12 million to buy NFTs created by prison bitcoin darknet operator Ross Ulbricht. The Foundation hopes to encourage him to rehabilitate for Forbearance.

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