Donors pay $1 million in fees for a failed bid for the US Constitution.
According to statistics released Wednesday, bitcoin donors who banded together to try to acquire a rare copy of the US Constitution have had insult added to injury in the form of nearly $1 million in fees.
Over 17,400 donors contributed to the high-profile attempt to buy the document at auction in New York, but after losing out to a billionaire’s $43 million bid, many have been requesting refunds this week.
Donors had to pay both to contribute and to receive their money back since the crowd-funding project employed the digital currency ether, which charges a fee for each transaction.
According to Dune Analytics’ tracking, the donors had collectively lost 199.5 ether (approximately $850,000) in donations and another 38.4 ether (about $163,000) in refunds as of Friday’s value.
The fees, which are a result of the digital currency’s decentralized design, highlight the difficulties of using crypto for everyday financial operations.
The fees are referred to as a “gas” fee by Ether, and they cover the costs of completing the computer transactions required to move the digital currency, according to its platform.
The auction firm Sotheby’s said the artifact was one of just 13 known surviving copies of the United States charter, which was signed on September 17, 1787 at Philadelphia’s Independence Hall by America’s founding fathers, including George Washington.
Regardless of the verdict, the cryptocurrency group ConstitutionDAO, which requested the rare document, gave it a thumbs up.
As the group disbanded, it announced on Twitter, “We made history and showed the entire world that a bunch of internet pals can… tackle a seemingly unattainable aim and produce fantastic achievements on an impossible timeframe.”
However, because many donors contributed the equivalent of roughly $200, they were stung hard by gas prices, which fluctuate based on demand and are charged at a set rate.
“Guys I really like your project, however you need to come up with something new. It makes no sense for someone to expend that much gas to reclaim anything “@nateliason sent a tweet.
Others were disappointed with the outcome as well.
@museumofcrypto tweeted, “It says volumes that a millionaire won the US Constitution over the 17,437 people who gathered together to try and secure this monument to freedom.” “Regardless, @ConstitutionDAO did a fantastic job.” According to Sotheby’s, Kenneth Griffin, CEO of the Chicago hedge fund Citadel, broke a world record for a historical document when he bought the 1787 manuscript at auction on Thursday.
Griffin. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.