For all of the gold bugs and precious medals fans out there, if you haven’t already, I think you should consider looking into DigitxDAO.
It’s a token based in the Ethereum blockchain that brings the transparency, immutability and global reach of blockchain tech to the time tested and proven permanence of the value of gold.
So let’s get into it.
When you first think of pegged cryptocurrencies, perhaps Tether comes to mind. This pegged crypto in particular, you may have noticed, has been surrounded by doubt of its true holdings of USD, the fiat currency to which it claims to be backed.
Pegged cryptocurrencies do have the allure of being a type of oasis when the crypto markets get really volatile, but it’s important to keep in mind that you are relying on the rate-pegging mechanism of that cryptocurrency to remain stable and the trustworthiness of the company behind that pegged crypto.
If that fails, let’s just say you will be experiencing volatility despite your best efforts to avoid it.
Ok now that I’ve got that off my chest, let’s take a closer look at the idea behind DigixDAO and all that this project has accomplished so far and what it’s got planned for the future.
The price stabilization and long standing reputation of gold as a store of value seems perfectly matched with cryptocurrencies, although I’m sure there are plenty of precious metal purists out there who would love to argue this, but considering those aspects of gold and matching it with the transferability and easy, secure storage that blockchain tech and cryptocurrencies provide, it’s easy to understand why the trend for gold-backed cryptocurrencies is growing. So expect more of these types of ICOs popping up in 2018 as well.
Here’s how DigixDAO is different:
It is a decentralized autonomous organization(DAO)
Meaning it is an organization in which all decisions are made through code or the votes of members of the organization.
Within Digix if you own DGD and participate in the community by either creating proposals that are aimed towards the benefit and adoption of Digix or by voting to accept or reject others proposals, you will be rewarded.
At the moment, there is only the DGD token available, this is the token used to participate within the DigixDAO.
In the not too distant future, there will be a second token implemented called DGX which will be the Digix gold tokens.
Each of these tokens will be backed by 1 gram of gold which is secured in their Safehouse vaults. Their Proof of Asset protocol will be used to ensure the transparent and immutable proof that the tokens are indeed representing 1 gram of gold each.
You’ll be able to trade these for physical gold. A minimum of 100 DGX tokens will grant you 100grams of gold.
Additional Reading/Sources:
DigixDAO Websit
DigixDAO White Paper
FAQ
DAO definition
Future of gold-backed cryptos
ZeroHedge Article on Future Gold-Backed Cryptos
Pegged Cryptos history