Meanwhile, the trading volumes across the crypto’s main instruments dropped by nearly 100% in the same period.

PEOPLE, the governance token of ConstitutionDAO, soared in value by nearly 200% in just 24 hours despite its trading volumes falling off the cliff in the same period, data on CoinMarketCap shows.

The cost to purchase 1 PEOPLE token surged to $0.0321 compared to $0.0110 24 hours ago. In contrast, its trading volumes across the crypto exchanges dropped by almost 100% to over $181,000, reflecting that the ongoing bullish move had very little support behind it. 

PEOPLE price performance on a 24-hour adjusted timeframe. Source: CoinMarketCap

The story so far

The massive upside momentum in PEOPLE’s market came at a time when users must have been dumping it for the Ethereum blockchain’s native token, Ether (ETH).

That is primarily because ConstitutionDAO, a decentralized autonomous organization (DAO), crowdsourced over $47 million in Ether via the sale of PEOPLE. It wanted to use the proceeds to buy a rare copy of the United States constitution but lost its bids to billionaire Citadel CEO Ken Griffin at a recent Sotheby’s auction.

Screenshot from ConstitutionDAO's community group. Source: Discord

Left with no Constitution and $47 million worth of ETH funds in its multi-signature wallets, ConstitutionDAO decided to refund the entire amount to its donors. But many in the DAO’s Discord community stressed that they did not want to pay the high refund gas fees.

In response, the ConstitutionDAO team provided two choices to its donors: either they could return their PEOPLE tokens for ETH (minus gas fees), or they can choose to receive a new governance token, dubbed We The People (WTP), without having to pay a gas fee, at the rate of 1 PEOPLE per WTP.

Meanwhile, in the event of donors not choosing to demand refunds, ConstitutionDAO will retain the capital.

As a result, the DAO will be able to keep a portion of the ETH in its vaults as long as donors convert their PEOPLE to WTP or ignore any reimbursements. So, if the value of Ether rises, the price of WTP will likely increase in tandem.

Therefore, the ongoing PEOPLE price rally is hinting that traders have been either choosing to hold it or buy it from the secondary markets to get a hold of the WTP token at a later stage.

Juicebox a clear winner

ConstitutionDAO has not released any specific reason why it wants donors to reimburse their PEOPLE tokens via a new governance asset, given it has already announced that it would shut down after failing to win the U.S. Constitution’s rare copy.

David Gerard, author of the book Attack of the 50 Foot Blockchain and a news blog of the same name, noted that Juicebox.money, another DAO that processes payments for ConstitutionDAO, typically collects 5% of all the money made by the project.

Related: Layer-two and multichain DeFi platforms see record inflows as Ethereum fees soar

Therefore, Juicebox might have already made at least $2.35 million through the ConstitutionDAO crowdfund and may make more from the upcoming WTP-funded ventures, if there are any.

“Not too bad a payday,” wrote Gerard.

For now, the outgoing ConstitutionDAO team has announced core contributor Brian Wagner and Web 3.0 expert Liminal Warmth as the project’s new leaders.

Meanwhile, the community has been voting on how it could deploy its Ether-backed WTP reserves on other projects, with its ideas ranging from pursuing a copy of the Bill of Rights to making a new Web 3.0 constitution from scratch.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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