DigixDao (DGD) is a new type of cryptocurrency backed by the safety of a physical asset onto the Ethereum blockchain. In this case, all the tokens are backed by the safety and stability of gold, specifically, the 99.99% London Bullion Market Association (LBMA) approved Gold bars which are kept at a private secure vault in Singapore. It aims to build a 21st-century gold standard financial platform on Ethereum blockchain.
DGD addresses the two key issues of a cryptocurrency holders, which are volatility and centralization. The rapid change/fluctuations in the value of cryptocurrencies cannot be a reliable form of payments during a transaction compared to traditional payment options. The second issue is the centralization of resources which mean a single point failure of a system will take down the whole system. For instance, a hack on the system in which a large number of tokens are kept can have a bigger impact on the whole ecosystem.
DigixDao offers all the listed features which other cryptocurrencies offer such as blockchain, privacy, low-cost transaction cost but the key difference is that it is backed by world's older form of storable value i.e. gold through a Proof-of-Asset protocol. Owning a Digix token is equivalent to owning gold. Each token of DGD represents a gram of gold, which is stored in a high-security custodian vault located in Singapore and users have the option to redeem their DGD token for gold at any point in time.
DGD tokens can also be used in trade on the Ethereum blockchain for the purchase of goods and services and other digital assets. Since the transaction of DGD tokens is transacted peer-to-peer, there is no risk to hacking and exploit by criminals arising from the centralized pool.
Physical asset-backed Coins: Each DGD coins are backed by physical gold bullion and represent 1gm of gold divisible up to 4 decimal points. The tokens are kept on Ethereum wallet and these digital gold token minted from Gold Asset Ownership Cards on the blockchain every time a client purchases 100g or 1000g of the gold bar.
Kai C. Chng (Founder & CEO) Anthony Eufemio (Founder & CTO), Shaun Djie (Founder & Partnership Director) and Teo Hye Chng (Chairman) lead the team in DigixDao.
In March 2016, Digix completed first crowd sale on the Ethereum Blockchain in which it raised $5.5 million within 12 hours of the launch. Of the raised amount, 40 percent will be expended into Research and Development, 30 percent into Legal & Compliance and rest 30 percent to Marketing expenses. There is a total supply of 2 million DGD tokens and is divisible up to 9 decimal points. The holders of DGD coins are rewarded every quarter through claim process on chain transaction fees collected by DigixDao.
DigixDao (DGD) is a cryptocurrency that is backed by the safety of gold thus helping the holders of DGD tokens to eliminate the two key main issues i.e. volatility and centralization.