Lately, cryptocurrency enthusiasts and investors have been discussing the latest installment to the Ethereum landscape the DAO Hub. However, there is another Ethereum-based DAO in the making which places the ownership of gold within the hands of blockchain technology called DigixDAO. The project that makes digital gold transactions take place within the Ethereum network lets its users choose how to participate in the DigixDAO governance structure and voting procedure in order to “build a digital gold payment system together on the blockchain.”
The DigixDAO (DGX) project has done well for itself over the past few weeks as it has become the 20th largest crowdsale event to date according to Wiki Commons. The projects crowdfund offered DGD tokens which act as an apportioned return DGX transactional volume and has raised a total of $5.4 million USD in the sale. Token holders also get voting power with their assets to help grow the DGX infrastructure and “release funds for business expenses paid to peripherals.” The $5.4 million crowdsale from the first gold standard platform on the Ethereum blockchain concluded after just 12 hours selling DGD tokens. DigixDAO website explains the project’s offerings:
“Every asset represents a unique gold bar sitting in designated Malca-Amit vaults. The provenance of the gold is traceable, immutable and exists indefinitely. The gold standard in peer‑to‑peer digital assets and transactions. 100% LBMA-approved gold with no fractional reserves.”
Just recently, the DGX team of developers have traveled to Asia to continue to expand the organization’s resources and networking. DGX flew out to Shanghai first to discuss the company’s venture with the Ethereum supporter WanXiang blockchain labs. DGX says WanXiang is taking an “active role spurring blockchain developments in China.” Afterward, the DGX group flew to Singapore to engage in presentations about the project and the Ethereum ecosystem. DGX also met with Jeriaska, blockchain editor / journalist from the Ongaku, who gave a private audit of the services vaults. Additionally, Vitalik Buterin, the inventor of Ethereum, came out to visit with the DGX team in Singapore that week. DGX explains the visit with Buterin last weekend:
“It wasn’t just all work and no play, and we had some really good conversations with him throughout the week about governance models for the DAO and how we should structure DGX. We were also part of a few round table discussions about the blockchain with various other exciting blockchain startups in Singapore.”
DigixDAO’s white paper explains the project in full detail and gives definitions and use case scenarios to its concept Proof of Asset (PoA) Asset Cards. The cards act as a representation of all tokens held within the user’s custody. The gold contained within the DigixDAO’s platform can be purchased in 1 gram increments and are also divisible to 0.001g. According to the white paper, DGX provides the documentation of token assets through the PoA protocol which ultimately utilizes Ethereum and the InterPlanetary Files System (IPFS) that enables owners to track and verify gold holdings through its immutable chain of custody. The process is explained within the developer’s white paper:
“DGX Tokens are minted via a Minter Smart Contract. Each DGX token represents 1g of Gold and divisible to 0.001g. For every PoA Card that is sent to the Minter Smart Contract, DGX tokens will be issued in return. For instance, a 100g PoA Card sent to the Minter Smart Contract returns 100 DGX tokens to the user. Digix Tokens are held in an Ethereum Wallet.”
Within the Ethereum universe, investors are watching this project closely. With people’s fascination with backed cryptocurrency solutions using precious metals and other commodities, the project has been extremely popular. DigixDAO is just another unique version of a decentralized autonomous organization, and there are many others within the crypto-environment moving into the realm of DAOs. Because the platform appeals to precious metal enthusiasts, this particular Ethereum offspring is a focus for gold investors looking for higher-yielding returns. However, many e-gold projects have failed in the past, and the idea has been pondered over the last ten years. DigixDAO and investors hope this project will be different.
Source: DigixDAO’s white paper, Medium, and Wiki Commons
Images: DigixDAO, Pixabay, DigixDAO’s Medium post, and Crypto-graphics.com