[HN Gopher] ConstitutionDAO
       ___________________________________________________________________
        
       ConstitutionDAO
        
       Author : tosh
       Score  : 82 points
       Date   : 2021-11-17 20:05 UTC (2 hours ago)
        
 (HTM) web link (www.constitutiondao.com)
 (TXT) w3m dump (www.constitutiondao.com)
        
       | meken wrote:
       | As of yesterday, they were only at $5M. To see it jump to $25M
       | today is staggering, and insanely impressive, from a fundraising
       | perspective.
        
         | holonomically wrote:
         | That's because the main thought leaders in the crypto community
         | have been pumping marketing material on Twitter, Reddit, and
         | Discord.
        
         | keymone wrote:
         | only a tiny fraction of those $ gains can be realized.
        
       | washedup wrote:
       | Funds from the winning bid are going directly to charity:
       | https://www.sothebys.com/en/buy/auction/2021/the-constitutio...
       | 
       | Very interesting. If Sotheby's accepts the DAO's bid, it will
       | potentially bring much more money to charity than any individual
       | bidder.
        
         | enragedcacti wrote:
         | I don't understand. Are you just "John Madden"ing that if the
         | DAO wins the auction then they will be the ones that bid the
         | most?
        
           | washedup wrote:
           | The highest bidder wins the auction, according to Sotheby's
           | rules. The DAO has already has more than the estimated
           | bidding range and has a good chance of beating all other
           | bids. We will find out tomorrow.
        
         | jimkleiber wrote:
         | I'm confused, if an individual bidder bids more than the DAO,
         | wouldn't that bring more to charity than the DAO?
         | 
         | Perhaps the argument is that the DAO is raising hype and
         | therefore raising the price for the winning bid and the hype
         | itself will increase the total going to charity, I just don't
         | see how the DAO would necessarily be giving more to charity
         | than an individual if the individual had a higher bid.
        
       | outside1234 wrote:
       | More Distributed Woo Hoo:
       | https://www.stephendiehl.com/blog/decentralized-woo.html
        
         | casi18 wrote:
         | show me how this would have happened without crypto. in less
         | than a week going from being a joke in a group chat to a
         | registered organisation with $25m funding and a clear mission
         | statement to take something from private ownership into public
         | display.
         | 
         | people can keep dismissing how strong a coordination and
         | communication tool crypto, is or we can start taking it
         | seriously.
        
           | ains wrote:
           | https://www.gofundme.com/
        
           | [deleted]
        
           | int_19h wrote:
           | I don't see how any feature specific to crypto contributed
           | here? The only coordination required is to get the requisite
           | number of people to contribute - and that's a social problem,
           | not a technical one.
        
       | keymone wrote:
       | there's this saying, something about fools, money and parting.
        
       | maybenotafart wrote:
       | I dont get this. Is the constitution an NFT?!?!?!
       | 
       | owning the constitution does not need to be a financial
       | transaction, this seems like a scam. we need less money in
       | politics, not more.
        
         | cdot2 wrote:
         | Read the whole thing
        
       | NickNaraghi wrote:
       | wagmi :)
        
       | m8s wrote:
       | So what happens if they lose the auction?
        
         | holonomically wrote:
         | The money is returned back to the donors (modulo gas fees which
         | is currently at $100-$200 range [1]).
         | 
         | 1: https://crypto.com/defi/dashboard/gas-fees
        
       | papa-whisky wrote:
       | Ignoring the questionable end-goal here, the 'crypto' aspect of
       | this is apparently completely orthogonal to the fund-raising
       | effort[1]. What's the point?
       | 
       | [1]https://davidgerard.co.uk/blockchain/2021/11/16/constitution..
       | .
        
         | casi18 wrote:
         | from his blog:
         | 
         | >No, the crypto bit absolutely doesn't do anything useful
         | 
         | None of this would have happened without 'the crypto bit'.
         | 
         | People are just annoyed that crypto is happening and theyve
         | been betting against it. they were so focused on the 'currency'
         | aspect they missed that groups of people can coordinate, they
         | missed that a reddit group can become a political force, they
         | missed that people are buying land together, the missed that
         | coordination is the killer app.
         | 
         | HN and the cynics have been telling us for years that none of
         | this would work, and when we get examples of it working we hear
         | "you could do this without x". yes, in theory you could have a
         | mysql database and a company registered in deleware, and stripe
         | processing payments, and also companies in other countries to
         | handle international payments, and blah blah.....
         | 
         | this is faster, easier, and more fun.
        
           | keymone wrote:
           | i'm far from hn cynic regarding crypto, but wholy shit, some
           | of crypto projects/ICOs/NFTs are so dumb you have to have
           | literally no brain cells to buy into them. including the one
           | this post is about.
        
           | UncleMeat wrote:
           | > None of this would have happened without 'the crypto bit'.
           | 
           | In the sense that it wouldn't have happened without a bunch
           | of people suddenly finding themselves with so much wealth
           | that spending it on a lark is fine and a nihilistic meme
           | culture where throwing money at jokes is a growing global
           | activity, sure.
           | 
           | Wouldn't it be nicer if millions were instead spent on
           | fighting poverty?
        
           | enragedcacti wrote:
           | > HN and the cynics have been telling us for years that none
           | of this would work, and when we get examples of it working we
           | hear "you could do this without x". yes, in theory you could
           | have a mysql database and a company registered in deleware,
           | and stripe processing payments, and also companies in other
           | countries to handle international payments, and blah
           | blah.....
           | 
           | Or just use GoFundMe?
           | 
           | I agree that none of this would have happened without the
           | crypto bit, but only for the reason that its a rushed and
           | poorly thought out idea that crypto nerds are latching onto
           | as proof that crypto finally has a high profile use beyond
           | speculation.
           | 
           | In reality this solves effectively nothing that centralized
           | systems don't while adding the risk of there being no legal
           | recourse if the team decides not to do what the DAO says.
        
         | tchock23 wrote:
         | When buying naming rights to a sports stadium only lasts a few
         | hours in the news cycle you have to get creative to keep the
         | crypto hype train running...
        
       | ohgodplsno wrote:
       | > the greatest historical tool for human governance: the U.S.
       | Constitution.
       | 
       | shitcoiners are evolving, they now have a sense of humour too
        
       | TigeriusKirk wrote:
       | I'm very pro-crypto, and also very pro exploring DAOs as an
       | organizing structure.
       | 
       | But this one feels so rushed that I won't be surprised if
       | scandals and controversies follow. A lot has to be done properly
       | here, and there's a lot of places things can go wrong.
       | 
       | If the aftermath has problems that are too spectacular, it could
       | cause trouble for more carefully planned efforts.
        
         | cdot2 wrote:
         | I would be surprised if scandals and controversies didnt follow
        
       | anonporridge wrote:
       | Insanely heretical idea.
       | 
       | Win the bid, then publicly burn this copy of the Constitution, as
       | an act of sacrifice to imbue it's original rarity into a digital
       | representation (some kind of NFT) that an unbounded number of
       | people can own shares of, thereby transmitting the memetic
       | essence of the object into the hyperverse to be preserved and
       | treasured for trillions of years, long after all physical copies
       | have disintegrated away.
       | 
       | Despite being seen as an unconscionable and horrific act of
       | destruction by the citizens of meatspace, it could in reality end
       | up being the most powerful act of preservation we could ever do.
        
         | ericjang wrote:
         | Interesting idea. But doesn't this rely on public acceptance of
         | the "imbuing of the original object's essence into NFT?"
         | 
         | How do you encourage people to associate the act of destruction
         | with an act of value transfer?
         | 
         | As a counterexample, an art vandal destroying a piece of art
         | does not inherit the value of the art, even though the vandal
         | and art interact in a culturally significant way such that the
         | art ceases to exist after the interaction.
        
           | anonporridge wrote:
           | First, I think there's a fundamental difference between a
           | vandal destroying something they don't own, and the owner
           | intentionally choosing to destroy it as an act of sacrifice.
           | 
           | Having said that, there actually _is_ some power in the self
           | sacrifice of engaging in a destructive act giving a person 's
           | message more power and attention (see Unabomber Manifesto as
           | a prime example).
           | 
           | Second, at least a subculture of people already do accept
           | destruction of real world things as an act that imbues the a
           | digital entity with the real world scarcity. It's called
           | proof of work, and bitcoin is constantly 'sacrificing' real
           | world energy which imbues the token with value in many
           | people's minds. Enough so make it a trillion dollar asset
           | class.
        
             | holonomically wrote:
             | What you described seems much more like cult insanity than
             | anything else.
        
           | TigeriusKirk wrote:
           | Someone did this with a Banksy print a while back, bought it,
           | burned it, sold it as an NFT. And the NFT sold for several
           | times the value that the print would have. That was back in
           | the NFT frenzy days of early-this-year though.
           | 
           | https://www.newyorker.com/magazine/2021/05/17/burnt-
           | banksys-...
           | 
           | The reaction to burning the constitution would be
           | overwhelmingly negative. Maybe like KLF's burning a million
           | quid it would ultimately shake out as a powerful statement,
           | but I sort of doubt it.
        
             | ericjang wrote:
             | The fact that the NFT sold for more than the original print
             | after the act suggests to me that the "sacrifice-value-
             | transfer" is not an exact 1:1 process, since the resulting
             | NFT had a different value. Yes, the owner is probably
             | delighted that the NFT is worth more, but then I'd argue
             | that "uploading a physical object's value to the digital
             | realm" is no longer the right way to think about this.
        
         | 2bitencryption wrote:
         | I think this is what kids these days would call "cursed"
        
           | anonporridge wrote:
           | blursed
        
         | KarlKemp wrote:
         | It's so original you're the third person _in this threat_ to
         | propose it. Congratulations! So smart!
         | 
         | Unfortunately, that sort of self-aggrandizing pseudo-clever
         | cynicism is what's driving this whole fad. There were times
         | when a generation thought free love and rock & roll were the
         | answer. Their children knew weed wasn't the answer, but it
         | tuned out those voices asking questions. Now, their children
         | believe they'll strike it rich on the PGA Tour of buzzword-
         | bingo, and while they wait for what they obviously deserve to
         | materialize, they'll get started on the tacky simulations of
         | what they believe the lifestyle of rich people to be a.k.a.
         | Instagram. And when that doesn't work, they get frustrated, do
         | the closest their fragile will allow them to get to therapy
         | (Proud Boys telling each other they don't need women) and reach
         | their final form once they've made up their mind if it's jews,
         | liberals, women, or "the elite" that's screwed them out of the
         | good life.
        
         | mejari wrote:
         | This seems like a ridiculous idea borne of the fetishization of
         | crypto/blockchains/nft/whatever nonsense.
         | 
         | There is fundamentally no act of preservation in destroying a
         | physical object, you have to twist all logic and reality to
         | think so.
        
           | anonporridge wrote:
           | Except that it's not destroyed.
           | 
           | It's ascended to a higher plane of existence, above the
           | constraints of meatspace.
        
             | mejari wrote:
             | That's not a real thing.
        
             | UncleMeat wrote:
             | I can just imagine the weeping historians and archivists of
             | the future learning that this happened. Digitized artifacts
             | are not the same artifacts, even when photographed at
             | incredible resolution. We keep finding more ways of
             | understanding objects that rely on more than just their
             | text or visual perception.
        
         | mNovak wrote:
         | Someone already did this (create NFT of the permanent
         | destruction of the original) with a Banksy original, so the
         | art/shock value is spent.
         | 
         | >> the most powerful act of preservation
         | 
         | As if we don't already have scans / text of the constitution
         | archived.
        
         | emerged wrote:
         | The real crypto was the friends me made along the way.
        
       | nrmitchi wrote:
       | So let me get this straight. There is an auction for a priceless
       | (well, very expensive) item.
       | 
       | A group is trying to raise funds to buy this item, but is not
       | guaranteed to win the auction anyways. Participating in an
       | auction while having a publicly known funding cap feels like a
       | poor position to be in.
       | 
       | Further, let's suppose the group wins the auction, and is now the
       | proud owner of a copy of the Constitution. This entire end goal
       | of this project seems dependent on finding a partner that is
       | willing to cover all the costs associated with storage, display,
       | security, etc of this high value item.
       | 
       | This feels like a whole lot of "ifs" for a project trying to
       | collection $20M.
        
         | parhamn wrote:
         | My favorite part is:
         | 
         | > We intend to put The Constitution in the hands of The People.
         | 
         | Like the US Archives aren't owned by the government of the
         | people. Instead this will be owned by a very few ETH holders
         | willing to participate.
         | 
         | But this might be one of the biggest fundraisers I've seen and
         | it probably wouldn't have happened without the crypto
         | ecosystem. For that, I am very excited.
        
           | PragmaticPulp wrote:
           | > Like the US Archives aren't owned by the government of the
           | people. Instead this will be owned by a very few ETH holders
           | willing to participate.
           | 
           | The ConstitutionDAO changed their website to remove
           | references to distributed ownership. They went on to clarify
           | that owners of the token won't have fractional ownership of
           | the copy of the constitution.
           | 
           | The also added clarification on the website about ownership
           | questions:
           | 
           | > No. You are receiving a governance token, not
           | fractionalized ownership. Governance includes the ability to
           | advise on (for illustrative purposes) where the Constitution
           | should be displayed, how it should be exhibited, and the
           | mission and values of ConstitutionDAO. ConstitutionDAO is
           | taking donations and donors are receiving governance tokens
           | with no expectation of profit.
           | 
           | So someone will technically own it, but it won't be the
           | people who bought these tokens. In theory the token holders
           | can vote on things, but they go out of their way to clarify
           | that the votes are advisory in nature.
           | 
           | Anyone who buys into this is basically making a donation to
           | this group. The crypto and DAO stuff is just window dressing.
        
             | shiftpgdn wrote:
             | This is rather unfortunate. I understand they have good
             | intentions of keeping an important document out of private
             | collector hands but this would have been a stellar time to
             | issue governance tokens and expose the wider world to the
             | potential offered by DAOs.
        
               | lottin wrote:
               | And what would that potential be? Just curious, I don't
               | see any potential.
        
               | javert wrote:
               | It cannot be taken for granted that they have good
               | intentions.
               | 
               | In the crypto/NFT/DAO space, be suspicious until proven
               | otherwise.
        
               | jimkleiber wrote:
               | > It cannot be taken for granted that they have good
               | intentions.
               | 
               | This is where I pull back and kinda laugh with irony at
               | the effort. Much of this process (most likely because of
               | the hurried pace) seems to be "just trust us" but wasn't
               | the whole point of the Constitution to build a system of
               | checks and balances so we didn't have to just trust one
               | group of people?
        
               | astoor wrote:
               | > _" they have good intentions of keeping an important
               | document out of private collector hands"_
               | 
               | Well, out of _other_ private collector hands, into their
               | own private collector hands. As other commenters have
               | pointed out, the members of the public who donate to this
               | don 't have any form of ownership.
        
               | toomuchtodo wrote:
               | They could have formed a 501c3 non profit, accepted tax
               | deductible fiat donations, established a governance
               | model, and arranged ongoing storage and viewing of the
               | document. But of course, no blockchain, so womp womp.
               | 
               | Private shared ownership could've been membership
               | interest in an LLC managed by Carta or similar. LLCs have
               | no membership limit unless taxed as an S corp (to my
               | knowledge).
        
               | wallacoloo wrote:
               | > You are receiving a governance token, not
               | fractionalized ownership. Governance includes the ability
               | to advise on (for illustrative purposes) where the
               | Constitution should be displayed, how it should be
               | exhibited, and the mission and values of ConstitutionDAO.
               | 
               | uh, that's what they're doing. They ARE issuing
               | governance tokens.
        
             | viro wrote:
             | Oh that is top tier silly
        
             | wtvanhest wrote:
             | I funded a small amount of it.
             | 
             | DAOs (distributed Autonomous Organizations) could be better
             | thought of in a corporate governance framework.
             | 
             | A) Least distributed corporate governance: Sole
             | proprietorship who owns 100% of their business
             | 
             | Every other organization sits between least and most
             | distributed
             | 
             | B) Most distributed corporate governance: Full democracy
             | state controlled
             | 
             | DAOs are special because the voting mechanism lets people
             | vote across boarders/jurisdictions etc from their
             | computer... but it also relies on the creators giving the
             | right level of control to the DAO voting. If they gave
             | voters 100% control, someone could do a 51% attack and have
             | it destroyed, or something else. But, if they don't give
             | enough control it is effectively a rug pull.
             | 
             | ConstitutionDAO is an amazing initiative because it puts so
             | many assumptions up for a test, and crosses crypto world to
             | mainstream. Its revolutionary.
             | 
             | The 'power' struggle is real... and fully on display
        
               | meheleventyone wrote:
               | If there is an undemocratic layer exercising overall
               | control then the net result is authoritarian. It would be
               | neither distributed nor autonomous. It's precisely why
               | democratic governance generally tries to balance power
               | between elements that can exercise checks on one another
               | and why eroding those checks is so worrying.
               | 
               | Like if you're trying to buy the constitution in a
               | democratic fashion you'd think you'd at least try to
               | understand what it means.
        
               | javert wrote:
               | It's not amazing. Like any company (a DAO is just a
               | company), it could be run well, by good people, or run
               | badly, by bad people. Whichever ways it turns out will
               | not prove anything about DAOs.
        
               | wtvanhest wrote:
               | A DAO is more like a specific corporate governance
               | mechanism than a company. For example, ConstitutionDAO
               | will be a non-profit, with a non-profit board etc. I
               | presume they will put things up for vote using the DAO.
               | 
               | If it is executed flawlessly it will prove DAOs as a
               | viable corporate governance mechanism. If it fails or
               | struggles, there will be learnings.
        
             | spir wrote:
             | I think you're right that the lack of fractional ownership
             | undermines what should be the primary benefit of the crypto
             | + DAO model.
             | 
             | However, I think they aren't doing the fractional ownership
             | to avoid running afoul of securities laws-- ie. this is a
             | coincidental drawback of this instance of a DAO under
             | today's US laws, and less so a fundamental issue with the
             | DAO model.
        
           | casi18 wrote:
           | it has previously been in a private collection, and without
           | constitutiondao would end up in another private collection.
           | 
           | the intention of the dao is clear, display it in a public
           | museum with free entry.
           | 
           | and yes, from a joke last friday to likely suceeding in less
           | than a week! exciting. the velocity of daos is remarkable,
           | and i think it is a just a small hint of what is to come in
           | the future. and it is coming quick.
           | 
           | (meanwhile i expect hn to continue talking about tulips or
           | something :)
        
             | holonomically wrote:
             | Have there been any DAOs designed for long term impact that
             | have been successful at their intended task? Is there a DAO
             | for nuclear fusion and fission projects or anything else
             | that has real world relevance?
        
               | kreeben wrote:
               | I'd like a WebSearchDAO please, that would only turn evil
               | if everybody wanted it to.
        
               | holonomically wrote:
               | Cool idea but this makes too much sense for anyone in the
               | crypto community to take it seriously. They mostly care
               | about what gets the most likes and upvotes on Twitter and
               | Reddit.
        
         | Animats wrote:
         | The site has a total deposited and a "goal" number. When the
         | total deposited passed $25 million, the goal jumped from $25
         | million to $30 million. When does it stop?
        
           | sinak wrote:
           | They're fundraising for a Sotheby's auction, so I think they
           | basically want to raise as much as they can to be able to win
           | the auction. Apparently they were told that it would likely
           | sell for ~$40m, with bidding starting at $20m.
        
             | TigeriusKirk wrote:
             | The low estimate is $15 million, so bidding will start
             | below there. It may quickly surpass it, or it may not.
             | 
             | I got the impression the original dao goal wasn't
             | accounting for the fees, which are added on top of the
             | winning bid.
             | 
             | https://www.sothebys.com/en/buy/auction/2021/the-
             | constitutio...
        
               | peter422 wrote:
               | The auction will not sell for any less than the maximum
               | amount the DAO has raised.
               | 
               | If the DAO are heavily incentivized to bid, and you know
               | what their max value is, somebody will bid them up.
               | Sotheby's is too smart not to make sure that happens.
               | 
               | It is generally a moronic idea to raise funds for an
               | auction like this. You will never get a good deal and
               | your competition knows exactly what your limit is.
        
         | tyre wrote:
         | It's going to be a disaster. I hope Sotheby's doesn't let them
         | bid.
         | 
         | Either they do whatever the random people who hold tokens tell
         | them to do--including, if you read their Discord, destroy it--
         | or you don't. In the latter case, everyone gets all upset that
         | governance tokens are not real things and blockchain is, once
         | again, not in fact "code is law".
        
           | holonomically wrote:
           | Main issue with the crypto community is they throw around
           | words like "trust-less" without truly understanding what they
           | mean so it's very hard to take them seriously. It is
           | impossible to have markets and governments without trust. At
           | some point digital transactions must be reified as real world
           | actions and that means the people carrying out the actions
           | must be trusted to do what is expected of them. There is no
           | system that doesn't assume trust somewhere, the trusted base
           | can be made smaller but it can never be entirely removed.
        
             | angusturner wrote:
             | This is such a good point. This is my first thought
             | whenever I see a new "blockchain for x", where x involves
             | some real-world product or activity.
             | 
             | Suddenly the promise of "trust-less" makes no sense, and we
             | are just left with poor performance and immutability of
             | human errors.
        
             | okwubodu wrote:
             | Trustless in the context of crypto means you don't have to
             | put your trust (if you don't want to) a 3rd party because
             | they don't have the option to not do the right thing. It
             | gives you the ability to know exactly what you will lose
             | and what you will gain when you press confirm on a
             | transaction. It doesn't matter whether or not you trust the
             | other person because they simply don't have the ability to
             | do anything other than the code-that you both can verify-
             | says.
             | 
             | (This isn't to say that there are no bad actors, but that a
             | wolf in sheep's clothing would be forced to act like the
             | sheep it presented itself as.)
        
               | holonomically wrote:
               | I don't think you understand what I'm saying. The real
               | world requires trust. It doesn't matter what the code
               | says. If I buy something then I have to trust that it
               | will be delivered in some way by passing through trusted
               | 3rd parties like FedEx. There is no way around trust. As
               | soon as the digital makes contact with reality all
               | mathematical guarantees of being "trust-less" are no
               | longer relevant.
        
               | lottin wrote:
               | This is not how a blockchain works though. Transactions
               | are appended to the blockchain by a 3rd party that has
               | discretionary power, not by some computer code.
        
               | okwubodu wrote:
               | > 3rd party that has discretionary power, not by some
               | computer code.
               | 
               | I genuinely have no idea what you mean by this. Unless
               | you manage a 51% attack there's no discretion to be had.
               | You can for sure push nonsense to the chain, but it would
               | either be ignored or punished [1][2] in some cases.
               | 
               | Blockchains are just distributed computing, it's all
               | computer code. The first two sections here
               | (https://paulx.dev/blog/2021/01/14/programming-on-solana-
               | an-i...) explain it much better than I can.
               | 
               | [1]https://support.polkadot.network/support/solutions/art
               | icles/... [2]https://docs.solana.com/proposals/slashing
        
           | lozaning wrote:
           | Sothebys would appear to be all about this
           | https://www.sothebys.com/en/buy/auction/2021/sealed-
           | cryptopu...
           | 
           | They don't care as long as they can take their buyers
           | premium.
        
           | Imnimo wrote:
           | The webpage says your token just lets you "advise" on what to
           | do with it, which feels completely meaningless. The FAQ says:
           | 
           | >We recognize that much more detail is required here! Due to
           | the unusual and extremely short timeline of needing to rally
           | around obtaining the Constitution during the auction window,
           | we have not been able to focus on giving the technical
           | aspects of DAO governance mechanics the careful consideration
           | and community deliberation this topic requires. The Delegates
           | do not want to simply declare how this will work, and we will
           | be working with the DAO community post-auction to make these
           | decisions.
           | 
           | So definitely completely meaningless.
        
         | kelnos wrote:
         | > _This feels like a whole lot of "ifs" for a project trying to
         | collection $20M._
         | 
         | Also I feel like one of the only thirteen surviving copies of
         | the US Constitution will sell for a _lot_ more than $20M.
        
         | AutumnCurtain wrote:
         | >Additionally, the community has expressed strong preferences
         | for institutions that are free to the public and willing to
         | cover the costs associated with housing the document.
         | 
         | Had to laugh at this. I'd have a strong preference for others
         | subsidizing my questionable decisions too.
        
           | nrmitchi wrote:
           | I think it's more than that; "preference" aside, if you can't
           | find a partner willing to cover the costs, how will the
           | upkeep costs be paid for? I see 3 options:
           | 
           | 1. They are required to raise additional funding for
           | maintenance. I'm not sure I'd bet on them having the same
           | interest in this project in a couple of months
           | 
           | 2. The DAO neglects the item, and it gets irrecoverably
           | damaged/destroyed. The ConstituationDAO has now effectively
           | destroyed a copy of the constitution
           | 
           | 3. They find themselves in the position of having to firesale
           | the item in a couple of months when they're unable to cover
           | the associated costs.
           | 
           | I'll also add that it would be _possible_ for the DAO to have
           | enough funding after purchasing the item to generate
           | income/returns that can cover the associated costs. Given
           | that their funding is public, and will be participating in an
           | auction, I'm not sure I would bet on having a whole of of
           | funds left over.
        
             | londons_explore wrote:
             | I think it's very unlikely they won't be able to find some
             | organisation to host the document.
             | 
             | For an organisation like a museum, who already have secure
             | climate controlled storage, and are already open to the
             | public, it would cost next to nothing extra to keep it.
             | 
             | Yet merely having a copy of the constitution will get many
             | more people through the doors to buy postcards in the shop
             | and coffee in the cafe. That will far outweigh the added
             | costs.
        
               | nrmitchi wrote:
               | I'm not disagreeing that there is likely an organization
               | out there.
               | 
               | You lose a lot of negotiating power though when everyone
               | knows that you are going to have a very short deadline,
               | and don't really have an alternative.
        
               | londons_explore wrote:
               | Nothing stops you loaning it to a museum for a period,
               | eg. 6 months, giving you time to choose either another
               | place to loan it to or a permanent home.
               | 
               | It's common for artifacts to go on 'tours' like this, so
               | as many people as possible get a chance to view them.
        
               | solveit wrote:
               | Eh, many museums will want this, so the DAO only has no
               | alternative if the museums all collude, which I don't see
               | them doing.
        
           | simonebrunozzi wrote:
           | Several museums would be very happy to host the constitution
           | and just pay for the "storage" fees.
        
       | root_axis wrote:
       | This is a great example of the power of crypto. Millions of
       | dollars raised in record time, meanwhile the marks have been
       | fooled into thinking their tokens are actually meaningful while
       | the masterminds of the scam have legal control of the document in
       | question and are free to completely ignore any of the "voting"
       | that goes on since blockchains do not exist in meatspace and mean
       | literally nothing with respect to legal ownership of the
       | document. This kind of thing simply wouldn't be possible without
       | the web3 revolution, this is really exciting stuff!
        
       | rvz wrote:
       | They are probably going to win the auction + gas fees included,
       | but they would probably need more money to protect it than just
       | simply 'owning it'.
       | 
       | > The eventual home must have the expertise to properly house,
       | store, and maintain the artifact. Additionally, the community has
       | expressed strong preferences for institutions that are free to
       | the public and willing to cover the costs associated with housing
       | the document.
       | 
       | The problem with DAOs is 'trust' which they are vulnerable to
       | this trust being abused. Hence, I'm afraid that such 'DAOs' don't
       | have a good history of being trustworthy, especially when there
       | is little to no regulations involved, but we'll see.
       | 
       | Maybe to launder the $30M, would be to mint the Constitution as
       | an NFT perhaps?
        
       | V__ wrote:
       | > Am I receiving ownership of the Constitution in exchange for my
       | donation? > No. You are receiving a governance token, not
       | fractionalized ownership. Governance includes the ability to
       | advise on (for illustrative purposes) where the Constitution
       | should be displayed (...)
       | 
       | So some anonymous group is raising money to buy the constitution
       | and in exchange you get voting rights? Which they totally pinky-
       | promise will adhere to. Oh, and it's crypto, so it's a token.
       | 
       | This sounds like Victor Lustig selling the eiffel tower but with
       | technology.
        
         | casi18 wrote:
         | Not anonymous, team is very public. because of US law this is
         | the practical way of actually doing it, the alternative seems
         | to be not doing it and thatd be boring. theres been long
         | discussions for days in the discord, if people have suggestions
         | of a better way to do this come join in.
         | 
         | people are very open to how else could we do this and how it
         | can be improved and secured.
         | 
         | remember this was just a joke in a group chat last week, that
         | speed of development will have issues, but community and
         | reputation matter, and we can lean on that as we solve the
         | legal structure.
        
           | V__ wrote:
           | The team may be in the public, but neither on Twitter nor on
           | their website is any imprint or personal information.
           | 
           | The proper way to do it, would be to set up a non-profit
           | organization where each funding/paying member gets voting
           | rights (no crypto needed).
           | 
           | It's funny as a joke and maybe the intention is good, but in
           | the end this could just as well be a new crypto scam and
           | funding this project is the same as gambling at a casino.
        
           | pdabbadabba wrote:
           | There are any number of other, more rational ways of doing
           | this. The only "problem" is that they don't involve crypto
           | because, in this case, crypto brings absolutely nothing to
           | the table that I can discern except an increased risk of
           | getting scammed. The most obvious would be to sell shares in
           | a corporation or LLC. That entity could then use the money
           | raised to buy the constitution. That way the funders would
           | actually have something of recognized legal value (fractional
           | ownership in an entity that owns a copy of the U.S.
           | Constitution) instead of a largely worthless "governance
           | token."
           | 
           | Under the current approach, it seems like people are being
           | asked to contribute money so that _someone else_ can buy a
           | copy of the U.S. Constitution, with the funders having--at
           | best--merely a say in how /where it is displayed. I can't
           | imagine why anyone would want to do this, unless they are
           | misunderstanding what they are getting in return for their
           | ETH.
        
       | nonameiguess wrote:
       | Why give governance tokens? The second blurb there states they
       | wish to hand it over to some place that can house it open to the
       | public free of charge, but then later state the purpose of giving
       | you a governance token in exchange for contributing to the
       | auction bid pool is you get a say in what will be done with it.
       | It sounds like they've already decided what to do with it. Give
       | it to a public national museum. Reserving the right to take it
       | back and do something else instead doesn't make much sense. I'd
       | rather fund a bid that promises to donate it and relinquish any
       | further rights than get some tradable ownership share I can sell
       | to someone else who decides they want to burn it ten years from
       | now.
        
       | miguelmota wrote:
       | This is an interesting experiment that I'm excited about. The
       | fact that a financial flash mob is possible is incredible.
       | Anybody from anywhere can participate and have voting power by
       | joining the DAO. Regardless of the outcome, it's good to see the
       | convergence of DAOs into meatspace.
        
         | jimkleiber wrote:
         | Well, I think they've been saying that the tokens guarantee
         | voting power to _advise_ the LLC which actually owns the
         | physical document, not to actually own the document, because,
         | as someone else mentioned, that may run afoul of US securities
         | laws.
         | 
         | I say all this being excited about iterating on the future of
         | governance, I also worry that such quick financial flash mobs
         | could really screw people really fast.
        
         | keymone wrote:
         | except of course there is literally zero voting power from
         | participating in this project because the "power" bit is always
         | assigned by a source of authority and nothing about this
         | project tells you how can this power be realized or enforced.
        
       | ChrisArchitect wrote:
       | "from a joke last friday to this" ..... all of this stuff is
       | treated like a game. Everything is not a game. The attitude
       | behind all of these stunts and NFTs and everything is fucking
       | ridiculous and points to so much wrong behind the scenes it's
       | unnerving
        
       | holonomically wrote:
       | I don't think these people realize the futility of their effort.
       | The US Constitution isn't something to be bought and sold.
       | Assigning a dollar value to it is the literal anti-thesis of
       | everything that is outlined in the document itself.
        
         | KoftaBob wrote:
         | "For the first time in thirty-three years, one of thirteen
         | surviving copies of the Official Edition from the
         | Constitutional Convention will be publicly auctioned by
         | Sotheby's. It is one of the two copies that are still owned by
         | private collectors. The proceeds from the auction will be given
         | to a charity that has been established by the current owner.
         | 
         | ConstitutionDAO is a DAO that is pooling together money to win
         | this auction. We intend to put The Constitution in the hands of
         | The People. "
         | 
         | It's a copy of the original.
        
           | UncleEntity wrote:
           | > It's a copy of the original.
           | 
           | In the same way a Gutenberg Bible is "a copy of the original"
           | I suppose...
        
           | holonomically wrote:
           | I understand what they're doing. The Constitution already
           | belongs to the people, no copies need to be bought or sold
           | for this to be the case. That's what I mean by futility of
           | their effort. Their project betrays a profound
           | misunderstanding of the US Constitution.
        
             | KoftaBob wrote:
             | Yeah in terms of that, it seems like it's hyperbolic
             | metaphor that the crypto community loves to throw around.
        
           | [deleted]
        
         | casi18 wrote:
         | its fun. and it demos how these tools can be used for rapid
         | mass coordination.
        
           | holonomically wrote:
           | It doesn't demonstrate any of that. This was pumped on
           | Twitter, Reddit, and other centralized aggregators which
           | defeats the entire argument about decentralized mass
           | coordination.
        
             | casi18 wrote:
             | fine, i cant be bothered with hn anymore. so you can say ok
             | its discord and twitter.
             | 
             | but crypto is fun. people will keep having fun.
             | 
             | we can ignore that and write it off as has been the case
             | for the past ten years, or we can recognise 10% of
             | americans have coinbase app installed. that this is
             | reality. and people can keep saying "we could do this
             | without crypto" but it doesnt change the fact we didnt do
             | it without crypto, we did it with crypto. and then can
             | start to investigate why that is, or bury our heads in the
             | sand saying "show me a real use case"
             | 
             | we can start to investigate why thousands of people are
             | willing to essentially donate money towards a meme, what
             | that sense of community and collective ownership is about,
             | and what this means for the future, and how this tech is
             | enabling that and how we can channel it -> there already
             | talks of BailFundDAO and ReparationsDAO off the back of
             | this...
        
               | holonomically wrote:
               | I can see why you're exasperate but you can also see why
               | sensible people don't think crypto is anything more than
               | a toy. So far it has had no positive real world impact.
               | Most aspects of crypto are dominated by childish memes
               | which drives away sensible people from investing time and
               | effort into doing something meaningful with the
               | technology. The childish culture will have to change for
               | the technology to have any meaningful impact.
        
               | keymone wrote:
               | i generally agree, but
               | 
               | > So far it has had no positive real world impact
               | 
               | lots of opposition politicians in repressive regimes are
               | currently funded using bitcoin, so be careful with
               | generalizations
        
               | holonomically wrote:
               | Then I'm looking forward to the positive outcomes and the
               | crypto community celebrating their wins instead of
               | hawking more pixelated boob NFTs.
        
       | djrogers wrote:
       | "Will the core team receive any of the raised funds for
       | themselves or get compensated in any way from this?
       | 
       | The core team has not received or pre-minted any tokens.
       | Following the purchase of the Constitution, we intend to submit a
       | proposal to be voted on by the community. While this is unusual,
       | we believe that it establishes a precedence of mutual trust
       | between the core team and the backers of the ConstitutionDAO."
       | 
       | So anyone who funds this has to trust that a) You are not a dog,
       | b) ConstitutionDAO will use the money to buy the copy of the
       | constitution, c) All extra money will be returned, d) The above
       | mentioned proposal will be in the interests of the community, and
       | e) ConstitutionDOA will abide by the above mentioned vote.
       | 
       | Setting all of that aside, what mechanism exists for a
       | "governance token" to actually have any power in this
       | relationship at all?
        
         | cge wrote:
         | Beyond this, there doesn't appear to be any explanation of how
         | this works from a legal and tax perspective.
         | 
         | There's no mention of a legal entity receiving the funds, but
         | at the same time, they state these are donations, not
         | fractional ownership, so presumably from a legal perspective
         | this is actually just giving the funds to the core team, who
         | appear to be mostly in the US, but not entirely? And, while I
         | had always thought that the _point_ of DAOs was that they were
         | _autonomous_ , this appears to be just giving the core
         | contributors direct control over the money? Surely, for
         | example, the actual bidding is not coded into the contract?
         | 
         | So, considering this is now over $25m, wouldn't there be some
         | tax involved if people pay you in this way? Maybe if you argue
         | they are gifts (but are they?), and no individual donation is
         | over $10k, but I suspect many are?
         | 
         | And at over $25m, Sotheby's is obviously going to have some
         | ownership identification requirements. So who will _actually_
         | be the legal owner here, and how will they account for this
         | revenue?
         | 
         | Apparently, they're _planning_ on setting up a (for-profit?)
         | LLC? (https://davidgerard.co.uk/blockchain/2021/11/16/constitut
         | ion...)
        
         | meheleventyone wrote:
         | It's a physical thing and a DAO (mostly) isn't a recognised
         | legal entity so there is always a disconnect here irrespective
         | of the crypto side of things. There's an awful lot of trust
         | being put into the honesty of the people organising this effort
         | with little ability to hold them to account. Which is par for
         | the course and why rug-pull is a turn of phrase.
        
       | snewman wrote:
       | As usual, Matt Levine has the best take (https://www.bloomberg.co
       | m/opinion/articles/2021-11-16/jpmorg...):
       | 
       | > Ben Thompson points out that this is all pretty approximate;
       | ConstitutionDAO will not give its token holders fractionalized
       | ownership of the Constitution...
       | 
       | > Also, not to be like this, but there is an original copy of the
       | Constitution on permanent display at the National Archives; it is
       | already "in the hands of the people," in the sense that (1) it is
       | owned by the U.S. government and (2) the U.S. government is, when
       | you think about it, sort of a decentralized autonomous
       | organization made up of the citizens of the U.S.? The citizens
       | can kind of tell the government what to do? By voting? When you
       | think about it? I don't know. I'm sure that in five years
       | ConstitutionDAO token holders will vote to change the Second
       | Amendment to say "putting laser implants in your eyes is now
       | mandatory" and somehow that will have the force of law.
        
         | root_axis wrote:
         | Hmm, "government" as a governance model? This has some serious
         | potential.
        
       | wellthisisgreat wrote:
       | Isn't it obvious that this is a memeing initiative that ran wild?
        
       | kall wrote:
       | I have read approximately 100 times that this is a grand,
       | endlessly interesting experiment and whatever happens it will be
       | a new era for crypto. OK, sounds kind of cool but what is the
       | hypothesis, or the interesting thing, or the thing that will
       | change?
       | 
       | Only things I can think of are meta-crypto stuff, like that
       | crypto hype can hype better than any other hype, that seems clear
       | since Dogecoin. Or maybe how good/fast communities can coordinate
       | using current web2 tooling, which is neat, sure. The speed and
       | scale do feel interesting, but I don't really know why.
       | 
       | Anyway seems harmless and very fun for everyone involved.
        
       | Imnimo wrote:
       | >ConstitutionDAO is seeking an esteemed partner to publicly
       | display the Constitution. The eventual home must have the
       | expertise to properly house, store, and maintain the artifact.
       | Additionally, the community has expressed strong preferences for
       | institutions that are free to the public and willing to cover the
       | costs associated with housing the document.
       | 
       | Really putting the cart before the horse on this, aren't we?
        
         | cdot2 wrote:
         | To be fair I can imagine that a number of museums would jump at
         | the chance to be essentially donated an original copy of the
         | constitution
        
           | Imnimo wrote:
           | If they wanted to "essentially donate" it, they could just
           | donate it. And if museums are jumping at the chance, they
           | could have arranged it ahead of time.
        
             | rndmind wrote:
             | this whole project is organized by a bunch of kids for fun,
             | chill out and relax your butt cheeks dude
        
               | jimkleiber wrote:
               | I can't speak for other Americans, but as much as I try
               | to see this as "organized by a bunch of kids for fun," I
               | also feel a strong emotional attachment to the
               | Constitution and an original copy of it. So I try to
               | balance that "cool experiment" with "wait, what are they
               | doing with a sacred document?" I say it genuinely, I feel
               | torn by the excitement at the experiment and
               | frustrated/angry at what seems to almost be a parody of
               | the Constitution itself.
        
       | jimkleiber wrote:
       | I think I'd be a lot more excited about this if they had an
       | innovative governance system underlying the DAO, as a way to talk
       | about the future of governance. Considering the Constitution is a
       | document about governance structure, it surprises and disappoints
       | me that their system of checks and balances seems to be mostly
       | missing, with maybe just a phrase of "pro rata" or whoever has
       | the most tokens gets the most votes. Seems not much different
       | than how most corporation voting works. Just seems like there's
       | an opportunity to more deeply discuss what the future of online
       | and offline governance will be, as geographic governing bodies
       | struggle to deal with digital spaces. But memes seem more cool I
       | guess lol.
        
       | EMM_386 wrote:
       | > We intend to put The Constitution in the hands of The People.
       | Additionally, the community has expressed strong preferences for
       | institutions that are free to the public and willing to cover the
       | costs associated with housing the document.
       | 
       | They should lend it to the US Government, it meets all these
       | goals.
        
       | axiosgunnar wrote:
       | How does ridiculous bullshit like this get 30mm while other
       | promising projects fail because people don't want to pay USD
       | 0,99? Has the entire world succumbed to simply whoever has the
       | better marketing!
        
         | sorethescore wrote:
         | Yes
        
       | barney54 wrote:
       | So what's the point? There is a copy of the Constitution that is
       | owned by the American people. It's on display in the National
       | Archives in Washington, DC. So what's the point of this DAO?
        
         | laluser wrote:
         | To me, it's more about the idea than the actual action on
         | display here. Decentralizing a process than is normally very
         | opaque and centralized is what's being attempted and it's a
         | cool idea. Whether this is executed well or not, that's a
         | different story.
        
           | jimkleiber wrote:
           | I wonder if one of the main reasons it hasn't been
           | decentralized is because it has been illegal to do so--
           | selling shares/securities to the general public without
           | disclosure of risks and other rules set forth by the SEC.
           | 
           | I remember being in the Bay Area back in 2014-16 and people
           | talking about wanting to use Kickstarter and other
           | crowdfunding platforms for not just buying products but
           | owning the company, but kept getting stuck at the accredited
           | investor requirements for private companies.
           | 
           | So, I guess I'm curious about this as a referendum on why we
           | have securities laws and accredited investor laws and whether
           | those should change or stay, I just don't think it's
           | necessarily as brand new of an idea as it seems.
           | 
           | EDIT: The concept I was talking about is called equity
           | crowdfunding [0] and the SEC opened it up to more people in
           | 2012 [1].
           | 
           | [0]: https://en.wikipedia.org/wiki/Equity_crowdfunding [1]:
           | https://www.sec.gov/divisions/marketreg/tmjobsact-
           | crowdfundi...
        
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