DGDBTC
DigixDAO / Bitcoin
crypto

Digix is building a decentralized autonomous organization (DAO) for the governance of a network focused on tokenizing physical assets. Digix was built on the Ethereum blockchain and integrates interplanetary file storage (IPFS) technology to store details of an assets provenance. The smart contracts for the network are live on the Ethereum main network and completed security audits in Dec. 2018. Future upgrades will be made using an underlying modular smart contract system. The primary participants in the network are a vendor, which supplies certified gold bullion, a custodian that stores the gold, and an auditor that provides checks on the quality and quantity of gold stored. The process for creating a DGX token starts with creating a proof-of provenance (PoP) "card" on the blockchain which contains the timestamp of card creation, the SKU of the gold bar, the bar serial number, the chain of custody digital signatures from the vendor, custodian, and auditor, purchase receipt, audit documentation, depository receipt and storage fees due. Each card can represent multiple one gram denominations of gold. Once a PoP card is created a "minter" contract is invoked to produce DGX tokens. For example, a PoP card that attests to the purchase and storage of one kilogram of gold would create 1,000 DGX tokens. These tokens can be exchanged like any other token on the Ethereum platform. If a user wishes to do so, they can send DGX to a "recaster" smart contract which will provide them with a PoP card for their holdings. This card can be used to redeem an equivalent amount of physical gold, which can be picked up at the warehouse or mailed to the owner. At this point, the PoP card is removed from the blockchain. DGX holders are charged an annual fee of 0.60% (charged daily) for storing and securing the physical gold backing tokens (demurrage). This fee will be waived during the first year to incentivize adoption. In addition, the network charges a fee of 0.13% for transactions. Out of the 0.60% demurrage fee, 0.20% will be sent to a pool for future DGD rewards along with the entire 0.13% transaction fee. Once the governance system is finalized the team plans to use these rewards to compensate DGD holders for voting on proposals and other network-wide changes. Once the full governance system is built the team plans to use two primary tokens. The DGD token will be used as the primary mechanism for voting whether or not to include new proposals. While proposals can be submitted by anyone a second class of token, DGB, which is used to vote on which proposals are included in the DGD voting process. This token, of which there are 385, was distributed during the token sale to any participant that contributed more than $15,000. Unlike the DGD and DGX tokens, DGB is not an ERC20 token and is non fungible. Its primary purpose is to serve as a spam prevention mechanism and ensure only quality proposals are included for voting.