It seems like fundraisers DAO is something that seems unnecessary but people are getting interested in it anyways.
The biggest crypto crossover story in recent weeks is most likely ConstitutionDAO, a group of crypto believers who raised more than $40 million in ETH to buy the original copy of the US Constitution at auction.
There has been a lot of talk about how the group failed. You don't actually buy the Constitution; their organizational structure turned into chaos; and they messed up the recovery mechanism and got thousands of contributors in trouble. But what they achieved was almost as surprising as their failure rate: ConstitutionDAO received tens of thousands of addresses in about a week to donate $40 million without a dedicated marketing team or growth director. Part of this can be attributed to the broader phenomenon of meme-based populism – the same energy that led Reddit traders to recall GameStop shares in January. That is the allure of collective progress, with the ideological twist of a recognizable enemy: "Banks are bad."
But the massive spike is also a testament to the fast and furious nature of the crypto itself. Kickstarter, one of the most well-known crowdfunding platforms, will not withdraw funds from your bank account until the project is fully funded. And in the United States, Kickstarter works through the Securities and Exchange Commission's legal restrictions on regulated crowdfunding, which includes certain consumer protections - there's a lot the project can't do. If a project runs out of your money or doesn't build what it was intended to build, it can be held accountable.
Not so with crypto crowdfunds, or at least not yet. At ConstitutionDAO, the strategy is to raise money first and then understand the logistics. There is no guarantee for donations beyond the token set, which are distributed proportionally according to your investment. This is the logic behind the copy of the DAO constitution. Spice DAO (formerly known as Dune DAO), which now includes musician Grimes, raised $11 million for a copy of Alejandro Khodorkovsky's "Dune". However, he did so only after his initial refusal to meet the required high bid of $4 million for the manuscript - the new multipart upgrade is an attempt to pay the only member of the group who personally purchased the manuscript.
The main incentive is to keep your tokens when things don't work out, which could potentially hurt something in the secondary market. $ PEOPLE, the token for ConstitutionDAO, has a market cap of $271 million thanks to significantly less donations. It was trading at around $0.16 per token late last month. The $SPICE tokens have had less success so far, but they are sure to be traded. The whipping nature of the crypto market is uniquely suited to this type of impulsive communal movement. This is the logic of "monkeying," the annoyance caused by risking everything, with the addition of an ideological component. And there's nothing wrong with talking about Web 3.0 - a buzzword that's getting less and less obvious - is something that attracts wealthy investors.
Of course, this is not a new phenomenon. The crypto-backed publishing platform Mirror, introduced as an alternative to Substack, has evolved into an instrument for group financing of crypto projects through the indispensable token and token distribution model as defined by ConstitutionDAO. Early adopters use it to fund art projects, essays, bands, and other amorphous cryptocurrencies. There's an implied feeling in all of these projects that he doesn't owe you anything. Trust matters: If a donation to Kickstarter is an expression of goodwill, investing in a crypto crowdfuck is like starting a business early.
The recent gold rush in crowdfunding plays into this gamer ethos. Of course, you can lose everything. But isn't that the goal?