Digix crowd sale sold out within a day, raising a capped $5,500,000 only hours after the opening of “the first decentralized crowdsale on the Ethereum Blockchain” according to Anthony Eufemio, CTO at DigixGlobal, with almost half a million ether coins used in the process.
The crowd sale is to fund the creation of one of the first Decentralised Autonomous Organizations (DAO) by DigixGlobal Ltd. which will employ a proof of asset (PoA) protocol to back Digix tokens (DGX) with “99.99% London Bullion Market Association (LBMA) approved Gold.” DGX tokens are created through a “Minter Smart Contract” by using Ethereum’s smart contract platform with each token representing 1g of gold and divisible up to 0.001g.
A PoA Asset Card is further created by uploading through a smart contract onto Ethereum such information as the time stamp of the card creation, the gold bar serial number, purchase receipt and audit documentation, allowing for full transparency and verification as well as allowing a DGX token holder to redeem the token for actual gold.
According to Digix’s whitepaper, a further triparty system is used to secure the gold with ValueMax Singapore, a publicly listed company, supplying the gold, Bureau Veritas Inspectorate carrying out quarterly checks on the quality and quantity of gold in the vault and MalcaAmit providing secure physical storage.
The crowd sale will create two million DigixDAO Tokens (DGD) which are different from the gold backed DGX tokens as Anthony Eufemio, CTO at DigixGlobal, explained in an email to CCN:
DGD tokens are created for the crowdsale. They represent a share of the transaction fees from the DGX gold token system. The DGX tokens (1 gram gold tokens) are created through the Proof of Asset process where someone purchases a physical gold bar for storage at the participating custodian vaults. The users receive an […]
