fbpx
Opinions

How DigixDAO (DGD) Works & The Gold Backed Decentralized Autonomous Organization

Recently, we have seen cryptocurrencies being developed and really picking up the pace in the crypto market. This shows one thing; it has become almost obvious that the crypto sector is here for a longer time than most people predicted at first. New developments are being added day in day out and this is an indicator of a brighter future to the economic system. This is because of the innovations that have been realized through a decentralized blockchain system.

DigixDAO brings in the idea of digital gold just like Bitcoin but with an Ethereum based blockchain. In that, it is basically a representation of the money in gold standards.

With that in mind, this article will be aimed at discussing the origin and founders of DigixDAO, its market performance and the route it will take in future. All this is to enhance your understanding on the DigixDAO currency.

History of DigixDAO

The DigixDAO was first incorporated in Singapore in 2014 December. Prior to that, the DigixDAO tokens crowd sale that took place in 2016, March. This was actually the very first crowd-sale as well as the Distributed Autonomous Organization (DAO) which was hosted on Ethereum’s network. The organizing team intended that the sale last for 30 days but instead the coin met its hard cap of 5.5 million dollars in less than 12 hours. In this case, it sold out about 1.7 million tokens of the DGD and still managed to reserve 300 thousand dollars for the DigixDAO team.

In July 2017 however, the systems were hacked and over 4 thousand DigixDAO Tokens were stolen from the systems because its smart contract had a few glitches. This issue was later addressed and all the 35 address which were affected had their tokens reimbursed.

In 2018, the DigixDAO has approached that critical moment in its history especially after the introduction of the tokenized gold which takes the form of DGX token. The DigixDAO’s race to become one of the most trusted crypto coins is a heated one. As per one of the founders of this coin, if the people mine the gold for a longer period of time, economic and geopolitical risks will be unavoidable.

The founders of the DigixDAO are based in Singapore. They include:

  • Anthony Eufemio
  • Shaun Djie
  • Kai C. Chang

Understanding DigixDAO

DigixDAO is a crypto currency which is backed up by real gold bars. It is a Decentralized Autonomous Organization of the DigixDAO which is actually a decentralized group of participants who make decisions regarding the growth and success of the global ecosystem of DigixDAO. The DigixDAO Network comes with two elements namely; DGX (Digix Gold Tokens) and DGD (DigixDAO Tokens).

In that case, one DGX is a representation of one gram of physical gold. The speculative number of DGX tokens is 2 million. The DGD reflects this whole speculation around the actual value of gold. This indicates that the transaction price and volume of the DGD determines the chances of securing DGX which is wholly backed up by gold.

Token ownership at DigixDAO gives its members the right to vote in relation to the proportion they are holding in this network. All the funds raised at DigixDAO are maintained at a certain designated public address of the Ethereum. All the token holders get rewards on the investment they have made by simply being given a share of the transaction fees in DGX. The share is normally capped for collection from the asset transactions sector on the DigixDAO platform. In addition to that, user referrals are also given rewards on the DigixCore ecosystem.
Funds which have been allocated on this project are set to accelerate the development of the DigixCore which is simply an ecosystem which revolves around the exchange APIs, wallets and addition of partners to the blockchain system.

Just like the certificate for the Proof of Asset on the gold assets, the proposal given concerning this project has its timeline and budget unchanged on the IPFS (Inter Planetary File Systems). The members can in such a case pledge for the proposals or reject them. Only the proposals that have more than 51% majority are approved. They are then allocated funds which are generated from the DAO’s Multi-sig wallet which holds the Ether.

Market Performance of DigixDAO

The general market performance of DigixDAO is tied on gold speculation. This means that any trader who wants to get involved with crypto currency should have an insight on the market trends of gold too. The DGD may be mostly influenced by the Bitcoin’s performance but it’s different from the Ripple coin which moves with margins closely related to that of Bitcoin.

This DigixDAO coin had been able to stand out among other many coins in the market by being able to withstand the tough market state in January 2018. All in all, people should still keep an eye on its performance throughout the year to see if it can maintain such stability.

DigixDAO Wallets

The better part of trades with DGD takes place on the major crypto exchanges. Here the DGD can pair up with the likes of Ethereum and Bitcoin. After the release of the DGX, it will be available and open for purchase on the DigixDAO marketplace in collaboration with Ether.

For storage, there is a whole list of third party wallets in the market that support the custom tokens for Ethereum therefore can also consider the DGD and DGX tokens. Some of the wallets are; MyEtherWallet or the imToken which is a mobile app.

In conclusion, it’s evident that the team put in place to take care of the DigixDAO are making the leap towards the success of this crypto coin. As the crypto market demands for coin stability, the DGX system might actually be the breakthrough everyone has been looking for. With success of DGX token in many projects, this will attract many investors of Gold in the crypto currency world too.

Tags

Collins Valentin

Collins is a blockchain enthusiast, who spends his time between documenting the blockchain revolution in Africa, and writing the latest on the cryptocurrency space. Email: editor.news@blockpublisher.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Close