DigixDAO’s Dissolution

Digix Writer
Jan 29, 2020 · 4 min read
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Last week marked a pivotal moment for the Digix ecosystem.

Following the casting of votes by our community of DGD holders, the majority of DGD holders have voted for a dissolution of DigixDAO and to burn the remaining DGD in circulation, returning prorated amounts of ETH to token holders according to their DGD holdings.

While we felt strongly that the full vision of DigixDAO was not able to bear fruit, we are uplifted that the merits of the DAO model, where token holders are able to direct the proceeding course of action for a blockchain organization and be able to exit such an organization if they chose to.

We are committed to the will of the majority token holders to proceed with Project Ragnarok.

On behalf of the wider Digix team, we would like to thank everyone who participated in DigixDAO thus far, from DGD token holders to industry partners. We are grateful for the support we have received from our community and for everyone who has been part of this journey.

Celebrating the key DigixDAO milestones that shaped Digix

DigixDAO was created in March 2016. The launch in 2019 materialised our long-standing vision of democratising access to DGX gold tokens on the blockchain, as well as our commitment to the decentralised governance of the broader Digix ecosystem to allow anyone to effectively seek funding to build projects around DGX on the DigixDAO platform.

Since then, more than 50 projects have been submitted to the DigixDAO platform. Some of the key projects include NeutralG — a $4 million USD project passed on DigixDAO that aims to address liquidity issues with DGX, BullionIX — a platform to create innovative gold-backed non-fungible token (NFT) where users can mint an NFT with their DGX, and SeSocio.com — a leading crowd investments company aiming to achieve true democratisation of investments, added the DGX token to their website, enabling thousands of people in historically unstable economies in Latin America to access the security and reliability of tokenised gold. Other notable projects include marketing, community management, uniswap liquidity, exchange integration, and on-ramp off-ramp projects.

We are immensely proud that the platform has in part achieved what it was built for — supporting a close-knit, innovative community to spur on creative advancements and adoption for Digix. If not for the strong community engagement, some of the most pivotal projects for Digix would not be available today.

The course of action following the dissolution

Following the vote for dissolution, the current quarter will be the final DigixDAO quarter. In this quarter, all other DGD operations will cease after the locking phase of the subsequent quarter. Only projects that have passed their respective voting requirements before Project Ragnarok will continue to be funded.

You may refer to the following steps below with regard to the necessary actions to take following the dissolution:

  1. All DGD tokens will be unstaked at the start of the next Digix quarter;
  2. From there, all ETH from DigixDAO will reside in the DigixDAO Refund Contract;
  3. All DGD holders are required to submit two transactions on the Ethereum blockchain — both of which can be done on MyEtherWallet — to suicide their DGDs for the withdrawal of a pro-rated distribution of ETH from DigixDAO.
  4. Moving forward, all projects that are currently funded or have unfunded milestones on the DigixDAO platform will cease to be funded. It is important to note that DGDs will be deprecated as there will not be any utility nor rewards for DGD tokens with the deprecation of the governance platform.

What happens to Digix and DGX?

To help allay any confusion, the dissolution of DigixDAO is impartial to DGX and Digix. DGX and Digix will continue to remain.

Thank you and stay tuned

It has been a pleasure witnessing the unique projects created from DigixDAO that have been instrumental in building the DGX ecosystem we know today. We would also like to extend our thanks to the community managers and supporters of the project who have been vital points of support for the community and have been influential in spurring on the wider adoption of Digix.

As we close the DigixDAO chapter and continue to chart our journey towards the gold standard in asset tokenization, we hope that you will join us in all of our upcoming developments. DigixDAO contracts are open sourced under the BSD 3-Clause license and available as a framework for any developers intending to further their journey of building DAOs. The smart contract codes that were audited are available at https://github.com/DigixGlobal/dao-contracts/tree/mainnet-production

We look forward to continuing our efforts to build a trustable, reliable and secure financial future for everyone to enjoy. Do stay tuned as we will be sharing more exciting updates and plans in the pipeline on our blog.

Sincerely,

KC Chng,
Co-Founder of Digix

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