What is a DAO and why were we just trying to buy the US Constitution? | Currency News | Financial and business news

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  • A group of internet friends has funded $ 46 million to try to buy the US Constitution.
  • They have come together in what is called a DAO, a decentralized autonomous organization.
  • These new types of groups could have a major impact on the metaverse or, better yet, the globe.

They almost did. A cohort of 17,000 people funded $ 46 million over several days to purchase an original copy of the US Constitution, but then lost the offer.

The group, known as ConstitutionDAO, started off as a joke on Twitter after Sotheby’s announced the sale of one of the remaining 13 copies of the US Constitution, CNBC reported. Then it turned into a group of people meeting on a Discord server, deciding that they might have a serious chance to purchase the document. In a twist, Ken Griffin, the founder of Citadel Securities at the center of retail anger over GameStop’s trading shutdown in January, was revealed as the winning bidder.

The group that has formed is what is called a DAO, a decentralized autonomous organization. It’s a fancy term for something that can be summed up as a group of Internet friends coming together for a common purpose.

This is the rudimentary definition. But if you understood this concept, let’s go a step further.

Here’s how Ali Yahya, a general crypto partner at venture capital firm Andreessen Horowitz known as a16z, puts it: A DAO “enables online communities to form, pool resources and coordinate towards common goals – everything works without trust via code “.

This code works on blockchain technology and applies the rules that govern the group. Members can come from all over the world and even remain anonymous, Yahya told Insider via email.

Plus, it’s both cheaper and faster to set up than something like an LLC, he said, noting that much of the behind-the-scenes work is automated through code. The group typically raises capital using an Ethereum-based wallet, CNBC reported.

DAOs, a16z said, are going to have a “huge impact” on the next phase of the Internet, aka web3 or the metaverse. And they don’t just buy rare artifacts like the Constitution. Like businesses or venture capitalists, DAOs have different goals, depending on their goals.

“Some act like trusts and manage collectively owned property.

One of them, PleasrDAO, bought a one-of-a-kind Wu-Tang Clan album – once owned by Martin Shkreli – from the US government last month for $ 4 million. Before that, he bought a non-fungible token from the legendary doge meme that sparked several crypto projects.

Another called Friends With Benefits operates as an exclusive social club that requires FWB tokens to enter as well as membership application and voting, according to a16z.

Others think beyond the limits of the Internet. Matthew Gould, CEO and founder of crypto domain name company Unstoppable Domains, told Insider that ConstitutionDAO shows the “power of new technologies to quickly organize thousands of people and tens of millions of dollars for a cause.”

“Given the scale of the problems we face around the world, climate change, pandemics and hunger, these new tools hold promise for rallying support for important causes and making a real difference,” a- he writes. “If we can raise $ 47 million for a copy of the US Constitution, surely we can raise more for major issues. When is RainforrestDAO?”

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