Would you have thought that it was possible to own gold even if you’re not a millionaire? That is now possible thanks to blockchain-enabled tokenization.
DigixDAO is a blockchain project that wants to make this realization true for many people across the world. Launched in March 2019, DigixDAO has created a cryptocurrency backed by actual, physical gold – which users can invest in and sell off for profit at any time. The Digix team says that it creates “a world where 99.99% fine gold bars are made divisible, transferable and redeemable.”
Why should you care about DigixDAO? Well, for one, you can own actual gold, something that’s long been a preserve for the minority few. Second, you can diversify your crypto portfolio, and third, it provides much-needed stability in the crypto space.
With that, let’s look into the Digix platform and how exactly it tokenizes gold. We’ll also explore the platform’s dual-token system and the role of each token.
Features of DigixDAO
Digix utilizes Proof of Asset (PoA), which works this way:
Users record the audit trail of an asset on the Ethereum blockchain to generate POA Asst Cards. Digix says, “the asset cards are certified using sequential digital signatures from the entities in the chain of custody, mainly Vendor, Custodian, and Auditor, which are further validated with proof of purchase and depository receipts uploaded onto IPFS (IterPlanetary File System) for permanent record.”
The Vendor in question is ValueMax Singapore, a mainboard-listed company that sells certified gold bars and products like luxury jewelry and timepieces. The auditor in question is a multinational auditing group Bureau Veritas Inspectorate, which checks the gold’s quality and quantity. And the custodian is MalcaAmit, a state of the art vault located in Le Freeport, Singapore.
A Proof of Asset Cards contains the following info:
- Timestamp showing the date when the card was created
- Stock keeping unit of the gold bar
- The serial number of bar
- Digital signatures of the vendor, custodian, and auditor
- Receipt of purchase
- Documentation of audit trail
- Depository receipt
- Storage fees due
Digix’s DGX Tokens
DGX tokens tokenize gold in the network. One DGX token represents a gram of gold. Investors can redeem 100 DGX tokens for 100 grams of gold. DGX tokens are based on the Ethereum EIP20 protocol. DGX tokens are made to make gold accessible to the average person. Users can liquidate on their gold holdings at any time.
Digix’s DGD Tokens
The DGD token is the other token of Digix. DGD token holders can claim rewards based on how much DGX tokens they’ve used as transaction fees. Again, token holders can vote on network proposals and get rewards. Digix says they can make “active managerial decisions to any proposals submitted to DigixDAO.”
Unlike DGX tokens, you can’t redeem DGD tokens for gold.
Key Metrics of DGD
On Sep 29,2020, DGD traded at $68.66 with a market cap of $10,220,244 that placed it at #479 in the market. Its 24-hour volume is $69,49.29, while its circulating and total supply is 148,863. The token’s all-time high was $597.66 (Feb 28, 2018), while its all-time low was $4.10 (May 03, 2016).
Where to Buy and Store DGD Tokens
DGD token is listed as a market pair of ETH, BTC, INR, WETH, and USDT at Huobi Global, Bitrue, Livecoin, HitBTC, Bitbns, Coinbene, IDEX, Radar Relay, and Gate.io.
The token can be stored in any Ethereum-compatible wallet such as imToken, MyEtherWallet, Parity, Guarda Wallet, Trust Wallet, Trezor, and Ledger Nano.
Final Thoughts
Digix manages to come with an original concept: one to make gold “cool again” with the help of a decentralized, secure blockchain. Anyone anywhere can now own the precious metals and liquidate their holdings at their own desired time. Perhaps this sets a new precedent for the precious metal industry and indeed the crypto and blockchain world.