DigixDAO
DigixDAO is the Digix Decentralized Autonomous Organization, a decentralized group of participants making decisions about how to grow the Digix Global Ecosystem. Participants purchased DGD tokens in the “first ever ICO on the Ethereum Blockchain.”
Contents
DigixDAO Review
In order to distribute DGX tokens representing 1g of gold, Digix utilizes Proof of Asset (PoA). The process involves recording possession of an asset on the Ethereum blockchain and the creation of PoA Asset Cards. “The asset cards are certified using sequential digital signatures from the entities in the chain of custody, namely, the Vendor, Custodian, Auditor, which are further validated with proof of purchase and depository receipts provided and uploaded onto the InterPlanetary File System for permanent record.”
In total the Proof-of-Asset Cards stored on the Ethereum blockchain contain:
- Timestamp of card creation;
- SKU of the gold bar;
- Bar serial number;
- Chain of custody digital signatures (Vendor, Custodian, Auditor);
- Purchase receipt;
- Audit documentation;
- Depository receipt;
- Storage Fees due[1].
DGD token holders will make decisions related to any proposals submitted to DigixDAO. As a reward for voting and decision making in the growth of Digix, DGD holders receive rewards related to DGX, a token that represents 1 gram of gold. The tokenization of gold aims to provide stability and store of value in the cryptocurrency space. In order to distribute DGX tokens representing 1g of gold, Digix utilizes Proof of Asset (PoA).
DGX Token
DGX tokens are created by a smart contract that receives PoA cards and generates DGX tokens for each gram of gold. For example, if a 100g PoA card is sent to the smart contract, 100 DGX tokens are created and sent to an Ethereum wallet. This means Digix doesn’t engage in fractional reserves. Each DGX token always represents 1g of gold and is divisible to 0.001g.
The DGX tokens come with two sets of fees associated with storing and securing gold. There’s a demurrage fee that comes out to be 0.60% annually and also a 0.13% transaction fee when transferring DGX with an Ethereum wallet. However, Digix will wave the storage fees during the first year of operation.
DGD Coin
Holders of DGD can vote on how the DigixDAO funds are allocated. DGD token holders can make “active managerial decisions to any proposals submitted to DigixDAO.” However, there’s some confusion about the rewards for DGD holders who vet and approve project proposals.
There are 2 million DGD tokens in existence with 15% allocated to developers. However, if the DigixDAO requires more funding and the majority of participants agree, then another DGD token crowdsale can take place.
The supply of DGX tokens will depend on the demand for gold and the size of their vaults. The first vault Digix is working with can hold about 2 billion USD worth of gold, so if the new DGX gold standard becomes popular, they will need to expand to more vaults.
DGD Price
DigixDAO (DGD) Price Prediction
If the DGX token successfully represents gold, then there are plans to create more tokens for silver and other precious metals too.
The 0.13% transaction fees and one-third of the demurrage fees on DGX go into the rewards for the DigixDAO. As far as the sustainability of the DAO and DGX token, if at least 80% of DGD holders vote to liquidate the DAO, then DGX holders will be reimbursed either in gold bars, fiat, or a cryptocurrency.
Exchanges
The vast majority of DGD volume takes place on Binance and Huobi. On Binance the DGD has both BTC and ETH pairs. When DGX goes live, it will be available for purchase with Ether on the Digix marketplace.
DGD Wallet
Any 3rd party wallets that allow custom Ethereum tokens can store DGD and DGX ERC20 tokens.
Advantages
About 5.5 million USD was raised during the 12 hour crowd sale. This value will actually be used for investment in peripherals that increase DGX adoption as approved by DGD holders.
Some of the benefits of DGX include:
- Rewards. DGX holders are going to reap big from DGX. They are going to claim rewards on transaction fees of DXG, which is currently at 0.13% of the balance sent.
- Badges. Those who sent over 15,000 USD during the crowd sale are set to receive the biggest rewards. They will receive a special proposer badge witch will allow them to submit their proposal directly to DigixDAO.
- Proposals. Once the proposal has been approved by other badge holders, voting will start and it will be open to all DGX holders. They can accept or reject your proposal on a secret chain ballot.
See Also on BitcoinWiki
External links
References
- ↑ https://coincentral.com/digixdao-beginners-guide/ Coincentral: What is DigixDao?
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