About DigixDAO

DigixDAO Coin Review: Mining Guide, Price & Analysis of DigixDAO Cryptocurrency

DigixDAO is a product of the company Digix. DigixDAO is an organization behind the DGX stable coin. Holders of the DGD coins make governance decisions on the direction this cryptocurrency takes. Governance is through a voting system.

A DAO is a decentralised autonomous organisation. The participants of such an organisation govern themselves. These organisations seek to rid centralised institutions. Digix is an example of such organisations.

Centralisation is a big problem facing stable coins. Stable coins seek to provide a cryptocurrency with stable prices. DigixDAO solves both of these problems. They do this by tying their DGX tokens to physical gold. In turn, 1 DGX is always equal to 1 gram of gold. This results in a cryptocurrency with gold standards.

Understandably, the price of DGX tokens is always reasonably stable. The gold in use is stored in a vault in Singapore, via Safehouse. This system breaks the entry barrier to gold as an asset. Anyone can have gold on their portfolio through this system.

How DigixDAO Works

To understand how DigixDAO works, we have to look at their two different tokens. These two include DGD tokens and DGX tokens.

The supply of DGD tokens remains constant throughout. There are 2 million tokens in existence. These coins were sold in the company’s ICO.  However, holders of DGD tokens can vote to increase the supply. In this case, the developers will mint more.

Ownership of DGD tokens gives you a stakeholder position. Holders of the tokens can vote on development proposals. As a result, they help guide the direction of DigixDAO. Therefore, they are the governing body for DigixDAO.

Each DGX token represents ownership of 1 gram of physical gold on a specific gold bar. Holders of DGX obtain ownership rights to that gold bar. Each allocated gold is identifiable with a unique serial number, custody history, and fees associated.

DGX tokens are available on the Ethereum blockchain as ERC-20 tokens. They utilize smart contracts that receive PoA cards to generate DGX tokens. Let’s look at an example. A 100g PoA card creates 100 DGX tokens. This is the Prove of Provenance protocol. Moreover, this means that Digix does not engage in fractional reserves.

Users can redeem their DGX tokens for physical gold at any time. However, users have to travel to the vault to receive the gold. DigixDAO has vaults in Canada and Switzerland. Moreover, there are a few requirements that one has to meet before you can redeem your gold.

Can Investors Mine DGD and DGX tokens?

Both tokens in the DigixDAO ecosystem are not mineable. This is because every DGX token has a link to physical gold. Also, DGD token supply remains constant. However, DGD holders can vote to increase the supply. The total supply currently stands at 2 million. On the other hand, the total supply of DGX tokens is 100,300 tokens. The circulating supply stands at 96,877 tokens.

Sadly, DGX tokens have a lot of competitors in the market. As a result, DGX has a market cap of $5,573,021. This places it at rank 700 in market cap share. This is not very impressive. Other gold-backed coins are seeing more success in the market.

However, one thing that is working for DGX is the transparency that Digix operates with. Users can view almost all the information about the cryptocurrency of the website. This gives this currency one hand up against others like Tether Gold.

The Team behind DigixDAO

The DigixDAO team consists of individuals with vast experience. The team has experience in blockchain technology, finance and development. As a result, this is one of the most formidable teams in the cryptocurrency space.

The CEO and Co-founder is Kai Chng. He has experience as an EMFX trader on Wall Street for over four years. Moreover, he was an International Program student at UPenn- Wharton and graduated with honors from NYU.

Anthony Eufemio is the CTO and Co-founder. He is an 18-year veteran in software development, computer security and IT industries. Additionally, he has a Bachelor’s of Science in Computer Science from Viterbi.

Also on board is Shaun Djie. He is the COO and Co-founder. Shaun is the lead coordinator of the largest Ethereum Meetup in Asia. He also graduated from Singapore Management University.

Privacy and Security

The Ethereum blockchain is one of the safest networks that exist. That is why it has the trust of a lot of people. This is the blockchain that hosts the DGX tokens. As such, it is safe to say that DigixDAO is a secure system. The nodes in the system work together to keep the network secure from third parties.

However, there is a possibility for profile attacks. This is due to some vulnerability in the smart contract system that Ethereum uses. Such vulnerabilities lead to mistrust from the public. Even so, Ethereum proves to be reliable from time to time.

Digix maintains full transparency on developments within the ecosystem. This includes all information, including redemptions. All this while maintaining client privacy. The developers of the DigixDAO take clients’ privacy with seriousness.

Our Take on DigixDAO

The value proposition that DigixDAO offers is exciting. The ability to own physical and digital assets at the same time is appealing. Moreover, it makes gold as an asset accessible. It lowers the entry barrier for investors. Additionally, you can redeem or sell your assets at a moment’s notice.

However, DGX has a lot of challenges. One of them is stiff competition. The competitors of DigixDAO are seeing way more success. Additionally, the competitors offer more features than DGX does. For example, Tether Gold allows fractional ownership.

Not so many people are keen to get into gold as an investment. Therefore, DigixDAO needs to do extra work if they want to see mass adoption. Moreover, the system is not fully centralized. The project still news Digix as an institution for it to work.

Advantages

• Backed by gold.
• Verifiable ownership of gold assets.
• Secure and offers easy access to gold as an asset.

Disadvantages

• Centralised supply of GDG.
• Does not allow for fractional ownership.
• Faces stiff competition from already established currencies.

Where to Buy DGX Tokens

If you are looking to add this gold-backed cryptocurrency to your portfolio, then you are in luck. There are several exchanges you can buy it from. Some of these include GokuMarket, Indodax and Bitfinex.

Moreover, you can store the tokens on your DigixDAO wallet. Lumiwallet is another wallet you can use to hold your DGX tokens.

DGX is showing slight stability of value. It is impossible to tell whether the value of this coin will become one of the best coins in the market. Moreover, its centralization is not something cryptocurrency enthusiasts appreciate.

Final Verdict

This cryptocurrency has a great value proposition. It provides a reliable solution to owning physical assets alongside cryptocurrency. Additionally, it lowers the entry barrier to gold as an asset.

However, there are better currencies that offer the same thing in the market. The stiff competition may see the eventual downfall of this coin. There aren’t many people looking to get into gold as an investment. The few that do, have chosen competitors as better options. As it stands, it is better to go with the competitors. You stand to see more returns over time.