From a meme to $47 million: ConstitutionDAO, crypto, and the future of crowdfunding

Decoder with Nilay Patel · with Jonah Erlich · December 7, 2021 · 64 min

Summary

ConstitutionDAO attempted to raise $47 million via cryptocurrency to purchase a copy of the US Constitution at Sotheby's. This episode explores the fascinating story of their rapid fundraising, the logistical hurdles of bridging crypto with traditional institutions, and the broader implications for decentralized autonomous organizations (DAOs) and the future of crowdfunding. It highlights both the immense potential and inherent challenges of Web3-native collective action.

Key takeaways

• DAOs can mobilize massive capital extremely rapidly, demonstrated by ConstitutionDAO's $47 million raise in days.
• Integrating decentralized crypto fundraising with traditional finance and auction houses presents significant logistical and technical challenges.
• Returning funds in a decentralized organization can be as complex, if not more so, than the initial fundraising process.
• Tokenization and DAOs offer new models for collective ownership and crowdfunding, disrupting traditional frameworks.
• The 'code is law' philosophy inherent in blockchain can create rigidities when unexpected real-world events occur.

Themes

Topics covered

Episode description

Jonah Erlich is one of the core members of a group called ConstitutionDAO, a group that raised $47 Million to try to buy one of the original copies of the United States Constitution at an auction held by the high-end auction house Sotheby’s. Links: ConstitutionDAO Endaoment Crypto collective raises $27 million to bid for rare copy of US Constitution ConstitutionDAO loses $43 million auction of rare US Constitution copy ConstitutionDAO will shut down after losing bid for Constitution Almost buying a copy of the Constitution is easy, but giving the money back is hard Code is Law Ice Bucket Challenge dramatically accelerated the fight against ALS Iwata Asks: Just Being President Was A Waste! Succession Could ConstitutionDAO's PEOPLE token be the next meme coin? Transcript: https://www.theverge.com/e/22584604 Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Today’s episode was produced by Creighton DeSimone and Jackie McDermott. We are edited by Callie Wright. Our music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

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Frequently asked about this episode

What does this episode say about finance & fundraising?

DAOs can mobilize massive capital extremely rapidly, demonstrated by ConstitutionDAO's $47 million raise in days.

What does this episode say about founder & leadership?

Integrating decentralized crypto fundraising with traditional finance and auction houses presents significant logistical and technical challenges.

What does this episode say about ai & automation?

Returning funds in a decentralized organization can be as complex, if not more so, than the initial fundraising process.

What does this episode say about finance & fundraising?

Tokenization and DAOs offer new models for collective ownership and crowdfunding, disrupting traditional frameworks.

What does this episode say about finance & fundraising?

The 'code is law' philosophy inherent in blockchain can create rigidities when unexpected real-world events occur.

Listen

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