malloylester276819

p>Auctions with high fees force bidders get refunds for their crypto US constitutions

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p>24 November 2021

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p>People behind a failed bid for a rare copy of US constitution could be hit with an avalanche in refunds. Up to $40 million for 17,000 donors.

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p>The ConstitutionDAO team employed an "decentralised" method - mostly unregulated and using cryptocurrency - to accumulate the wealth.

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p>But large fees for those crypto-transactions have been consuming massive amounts of money in the refund process.

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p>According to the group the group, refunds were their number one priority.

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p>It then announced on its website that the project was shutting down despite having originally promised to continue.

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p>It said it was aware that people were eager to know about the next steps to take for ConstitutionDAO and that it had been exploring many possibilities.

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p>"While we would have loved to be able do so but we have concluded that establishing and maintaining an ongoing project is not something we as a group of core members can support due to the administrative and technical requirements of doing this properly."

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p>The group urged investors to claim refunds and stated that there was no time limit.

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p>ConstitutionDAO which stands for "decentralised autonomous organisation" was able to raise huge sums of money using the Ethereum cryptocurrency to purchase a rare privately-owned copy original printing of the US Constitution.

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p>The group had pledged to preserve the historic document "for the people".

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p>They were outbid by private investors and the auction house sold the document for more than twice the original estimate of the auction house.

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p>A number of investors in the scheme report that they must pay fees that can be as high as 50% of their refunds.

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p>Gas money

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p>This is because the Ethereum network records its transactions on blockchain, the same basic technology that is behind other cryptocurrencies, like Bitcoin.

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p>Like Bitcoin mining, it also requires computational power to be able to.

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p>Gas is the amount that is paid to people who manage the computer systems that facilitate transactions. And it changes price based on supply and demand.

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p>This means that transactions may occasionally be more expensive based on how busy the Ethereum network is.

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p>The network has seen high use in recent years and also rising gas prices.

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p>On its official Discord chat application which allows anyone to create rooms and discussion channels for people who are interested in every subject - the group said it had 17,437 donors , with a a median donation of $206.26.

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p>The transaction cost for small donations can be very high due to the high gas prices.

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p>One user on the Discord said that to receive $400 back, they would have to pay $168 for gas. Others complained that the fees were higher than the small amount they received in their refund.

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p>"Wow the lessons learned. Ethereum isn't good. Another member of the support channel wrote, "Gas too high."

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p>A different contributor expressed concern that the experience could be a make cryptocurrency less appealing to those who aren't investors, but became caught up in the drama of "buying the constitution".

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p>"Almost three-quarters of the people that contributed are new to Ethereum and their first exposure to this. They'll also have to endure the pain of paying $200plus for gas, which is basically nothing," they said.

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p>The future

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p>Senior Discord figures, also known as delegates, said that there was no solution that was clear. https://bailey-hodges.blogbright.net/azeroth-interrupted-the-couple-that-plays-together-stays-together </p>

p>"We tried to find a gas-free solution for refunds. One of us wrote that there was no way to get it done quickly.

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p>"Providing a secure refund process as quickly as possible was the primary goal."

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p>Another administrator on the server explained to users: "This was an extremely difficult decision, and we have been sitting at our computers for many days trying to figure out the best solution. There was no solution that could please everyone.

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p>The group was formed just days before the auction of the historic document by Sotheby's and had little time to establish its decentralised structure. Instead, a small group of insiders - the delegates - took care of managing the project, writing and rewriting the rules and FAQs as they went.

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p>The group originally intended to use the ownership of digital tokens as a method to allocate the right to vote on the display and care of the constitution, and even proposed a different type of token to decide its future.

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p>The group concluded by declaring that the event was a significant event that proved to the world that an online group can use the power and speed of Web3 to conquer seemingly impossible challenges and achieve remarkable results in a short time span.

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p>Over $40m was raised by a cryptocurrency bid to purchase US Constitution

/p>

p>18 November 2021

/p>

p>Crypto group fails in bid for rare US constitution

/p>

p>19 November 2021

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p>30 May 2021

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p>How do cryptocurrencies work? Video, 00.02:22How do cryptocurrencies function?

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p>12 February 2018

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p>2:22

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