The $PEOPLE token is a ERC-20 asset that is used to govern the PeopleDAO. Holders of the $PEOPLE token can vote on proposals and make decisions about how PeopleDAO operates. The token was adopted after the dissolution of the ConstitutionDAO, and its primary purpose in PeopleDAO is to allow its members to vote on proposals and receive rewards for contributing to the organization. Essentially, by holding and using $PEOPLE tokens, members can have a direct say in the direction and functioning of PeopleDAO.
In pursue to make a bid on the 1787 first-edition printing of the U.S. Constitution at Sotheby’s auction and provide a governance mechanism in case of success, the ConstitutionDAO has created the $PEOPLE token. Through a Juicebox fundraising campaign, wide web3 community was able to contribute ETH (Ethereum) in exchange for $PEOPLE, with a ratio of 1 ETH = 1 million $PEOPLE.
Unfortunately, the ConstitutionDAO was outbid and the core team has decided to disband, offering two options to backers of the campaign: either redeem their $PEOPLE tokens for a refund of the original amount of ETH they contributed, or keep $PEOPLE and claim it into personal wallets (if not done until then).
Shortly after, a group of community members decided to publish a proposal to establish PeopleDAO and use the $PEOPLE token as its governance token, giving it an alternative purpose.
The choice of the $PEOPLE token as a governance tool is not just symbolic, as the $PEOPLE token offers serveral valuable features:
Unmodifiable: No entity has control over the $PEOPLE token. The ConstitutionDAO’s multisig has relinquished its ownership of the token contract, making it impossible for anyone to manipulate it. This has been also confirmed through two different independent audits - available here and here.
Capped supply: The supply of $PEOPLE tokens is limited to the amount raised during the original auction campaign, an no more can be added. If holders decide to refund their $PEOPLE tokens for ETH, their tokens will be burned, making the token virtually deflationary.
Backed value: Given the Juicebox contract, all available $PEOPLE are backed by ETH in the original 1 ETH = 1 million $PEOPLE ratio. However, $PEOPLE token are currently being traded on exchanges for higher value.