The ConstitutionDAO project, which aimed to purchase a rare copy of the U.S. Constitution, faced significant hurdles in its fundraising efforts due to exorbitant Ethereum gas fees. The analysis suggests that the situation is causing growing concern regarding the accessibility and inclusivity of decentralized governance models.
High Gas Fees of ConstitutionDAO
In late 2021, ConstitutionDAO incurred around $1.5 million in total Ethereum gas fees, a staggering amount that resulted from tens of thousands of individual donations and refunds. The high transaction costs effectively restricted participation to wealthier individuals, contradicting the foundational principles of decentralization that the project sought to embody.
Challenges for Decentralized Organizations
This scenario underscores the ongoing challenges faced by decentralized organizations, where the cost of participation can create barriers for average users. As the crypto community continues to explore governance models, the ConstitutionDAO experience serves as a cautionary tale about the need for more efficient and equitable systems that truly reflect the ideals of decentralization.
In light of the challenges faced by ConstitutionDAO regarding high gas fees, KernelDAO is currently making strategic advancements to stand out in the DeFi market. For more details, see KernelDAO's strategy.
