Coinify And DigixGlobal Working On A New Deal with Ethereum
Coinify And DigixGlobal Working On A New Deal with Ethereum
Digix provides a transparent, auditable, and secure protocol that leverages Ethereum’s p2p decentralized consensus system and the Inter Planetary Files System (IPFS) to facilitate the creation of transferable crypto assets on the blockchain. It securely puts LBMA gold assets on the Ethereum blockchain allowing creation of DGX gold tokens.
The Digix Proof of Asset (PoA) protocol uses Ethereum and the Inter Planetary Files System (IPFS) to track an asset through its chain of custody. Digix Gold can be stored, sent, and received with an Ethereum wallet, and its ownership can be verified in real time by searching the Ethereum blockchain. Coinify is the largest European blockchain payment provider with growing presence in Asia with access to over 10,000 merchants such as Hungry Group, Queal, and Just-Sold. It was backed by a multimillion dollar capital injection from SEED Capital (funded by the Danish government) and Accelerace.
What is DigixDAO?
DigixDAO is an organization whose goal is to create a new gold standard digital payments system on the Ethereum network where participants (holders of the DigixDAO tokens) are rewarded with the transaction fees collected on the Digix Gold Token (DGX) platform.
What is DGX and DGD?
DGX or Digix Gold Tokens are Ethereum-based Gold Tokens that are backed 100% by gold and can be used to redeem physical gold. Each DGX token represents 1 gram of LBMA certified gold.
DGD is an Ethereum based asset that represents a portion of the DigixDAO. DAO token holders will receive a pro rated reward of DGX transaction fees on the Ethereum platform.
How many DigixDAO tokens will be issued and what is the reward for holding these tokens?
There will be a initial lifetime supply of 2,000,000 DigixDAO tokens. A holder of 1 token will receive a pro rated 1 / 2,000,000 of transaction fees collected by DigixDAO every quarter. There will be an automatic crowdsale project proposal submitted to current token holders for a new round every 2 years that may increase the lifetime supply. This
is put in place to ensure the sustainability of DigixDAO if more funds are needed. Additional crowdsales will only occur with majority consensus since it involves token dilution. Current holders will be eligible to purchase more tokens prior to releasing to the general public with a special multiplier.
Is this an offering of securities? What are the legalities regarding DigixDAO crowdsale?
DigixDAO token is a reward-based software product created by DigixGlobal Private Limited. The legal entity, DigixGlobal Private Limited, is not being sold in this crowdsale and remains privately owned. DGD is NOT a security or investment offering. DigixDAO token does not give you voting rights over anything, and we make no guarantees of its future value. More information can be foundat this link.
Can DigixDAO tokens be transferred to another person?
How many DigixDAO tokens are offered?
There will be 2,000,000 DigixDAO tokens in existence. 1,700,000 tokens will be publicly available at the crowdsale, while 300,000 tokens will be released to Digix developers.
Are DGD Tokens divisible?
Yes, they will be divisible to 0.0001 and will still be eligible for rewards and pledging.
How does project pledging work?
There will only be a maximum of 2,000,000 DGD tokens. Project pledging works this way: 1) DigixGlobal proposes a project with milestones and a budget detailed in a document uploaded on IPFS. 2) DAO holders pledge their Yes or No of proposal 3) an approved project releases the amount specified on the proposal to begin the project 4) if more funds are needed to complete the project then a new proposal is put up for pledging.
Is there a minimum target to reach during the crowdsale?
In the event where the DigixDAO Crowdsale is early terminated and/or the total worth of purchases does not meet US$500,000, all purchases collected will be returned to each purchaser.
What if DigixCore ceases to exist?
Proposer badge holders can submit a proposal to change the provider or release the crowdsale funds, which will require 80% pledge rate and badge holder approval. The new platform service provider can make arrangements with DigixGlobal to purchase the rights to our source code and/or create a new system that provides the same functionality of DigixCore. Orderly liquidation / transferring of assets will be in place to ensure the new that the new platform service provider will have the necessary means to keep the gold platform sustainable
What if there is a shadow crypto bank that builds its own internal ledger
A sub‐ledger designed to bypass Digix Gold token transaction fees can be created but is not economical as they would need to be able to recalculate the storage fee demurrage that is normally charged to the token holders. This would require additional gas fees to run their transactions and in most cases would cost more than the TX fees charged on the standard Digix Gold token ledger.
What is the difference between preference pledging and voting rights?
Holders of DigixDAO tokens use tokens to show support for a project, which will unlock the funds. The rules are hard coded, open source, and set by the DAO on the blockchain. This has never been done before prior to Ethereum. We do not want to confuse token holders with anything that could possibly relate to the legacy legal system.
Is there a majority-win rule required in the pledging outcome?
Yes, we are capping the rule to a minimum response of 51% or more for the pledge to be valid.
What are the laws regarding virtual currencies in Singapore?
Virtual currencies are not considered securities nor legal tender by MAS.
How do I participate in the crowdsale?
We will make an announcement soon. To be the first to receive information, please sign up to our mailing list and join our Slack community chat channel.
How do I buy DGD tokens?
We will allow users to pay with Ether and other virtual currencies such as Bitcoins, Litecoins, Dogecoins, through our ShapeShift API integration. DGD you have purchased will be sent to an Ethereum contract.
What is the potential of DigixDAO?
DigixGlobal is the next generation digital gold platform. The first ever iteration of digital gold, E-gold, achieved an annual transaction volume of US$2,000,000,000 at its peak even without lateral integrations. We believe that if the community is involved in building DigixGlobal, we can all create a revolution in finance allowing benefits to trickle directly down to DGD Token holders who are not separated from the product itself with over-complicated financial structuring.
How will we be informed of the use of funds collected from the crowdsale?
We will be publishing a Quarterly Report detailing the breakdown of our burn-rate, progress and any upcoming project pledges that are favourable with the direction of DigixGlobal. However, proprietary information deemed confidential in nature may be withheld – such as possible partnerships that are yet to be publicly disclosed, or other potential news that may misrepresent intentions or lead to unwarranted speculation. We seek to always be clear in our reporting as this is very much a community project like many others built on Ethereum.
Does this token sale of DGD guarantee me a dividend or interest that I can expect to be paid out every Quarter?
We would like to reiterate that this is a reward-based token system and not a loan-based system where we collateralize your token and pay you a dividend. The rewards essentially come from the volumizing of transactions of Digix Gold tokens on the Ethereum platform.