What is Digix Gold Token (DGX) Crypto Beginner’s Guide
DigixDAO is a system of smart contracts that use a decentralized organizational software to create and deploy the blockchain. It aims to work with the community to build and govern a gold standard financial system that uses the Ethereum blockchain.
It will start a standard of being a transparent and open organization by using the control of the smart contracts on Ethereum, such as the DigixDAO token owners that can impact decisions directly depending on the advocacy and growth of the DigixCore system. In return, the holders of the tokens are able to gain rewards from the transaction fees on Digixcore every quarter while on the system.
All the raised Ethers will be stored in a publicly disclosed address on Ethereum. The DigixDAO will have a pledging system in place, where the owners of the tokens are eligible to give their rejection or approval of project proposals as suggested by the company before any of the raised tokens can be released for the DigixDAO contract wallet. The community will directly influence where the raised tokens will go in a transparent matter.
All of the proposals on the project will be uploaded on the file system and will be publicly available. The holders of the token will have the opportunity to give their support to projects that are on the blockchain before any of the currency that is raised can be released to the community. The company predicts that the product will change the digital gold industry significantly by providing a system that is open and transparent to users on the system.
Digix Gold Token Purpose
DigixDAO relies on the use of token holders to pursue the objectives related to business development, legal development, and research development of the system. In return for the support, the token holders on Digicore will be rewarded with the transaction fees that will happen when using DigixDAO on the network.
The DigixDAO token serves two primary purposes when used on the system.
- It gives anyone and everyone the opportunity to participate in a decentralized, transparent organization where the token holder has significant influence over the direction that is taken by the company and is also rewarded when doing so by receiving the transaction fees on the system.
- It is used to incentivize the adoption of using the DigixDAO on the network. With many supports that use the system, there is a higher chance that the gold back token will be used for new decentralized applications on other systems. For example, these tokens can be seen as collateral in digital nation projects, payment systems, P2P lending, and funding platforms that use Ethereum.
How Many DigixDAO Tokens are There?
There will be a starting supply of just 2 million tokens on the system. The owner of these tokens will be aided in transactions fees collected by the company each quarter they actively support the platform. There will be a set crowdsale proposal project submitted by current token holders for each new round every 2 years that the supply increases.
If there is any need for emergency tokens to be issues, then a proposal can be turned in to increase the number of tokens by a specific amount. This is in place to ensure that the tokens are more sustainable long term. Extra sales will only happen when a majority consensus is reached since this can cause token dilution. Any current holders of tokens will be eligible to purchase extra tokens prior to the release of the system to the general public.