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Digix To Return 465,000 ETC To DGD Token Holders
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In an interesting development, Singapore based Digix Global, a company that plans to bring physical gold-backed tokens to the Ethereum blockchain, recently announced that it would be returning 465,000 ETC to holders of DigixDao (DGD) tokens. In an industry currently riddled with scams, fake ICO’s, theft, and blatant self-interest, this is a pleasant surprise from what is considered one of the top development teams in blockchain technology.
After a successful ICO in March of 2016, which was intended for the creation of Digix Dao, Digix had raised over 465,000 ETH, worth $5,500,000 at the time. The funds were immediately locked into an Ethereum contract, and have not been touched since. When Ethereum hard-forked its protocol later in 2016, Digix Dao ended up with 465,000 ETC to match its ETH holdings. Today, Digix Dao’s ETH and ETC holdings are worth approximately $45,000,000.
The funds belong to Digix Dao, the individual holders of DGD tokens, who will hopefully soon become the first Decentralized Autonomous Organization to exist on the Ethereum blockchain. And those DGD holders will be the ones to decide how the 465,000 ETH are spent. With the ETH in Digix Dao, token holders will fully decide on projects that will spur the adoption of Digix.
I recently asked Digix CEO, KC Chng, about the plan to return the 465,000 ETC to DGD holders. Mr. Chng said, “Well, the fact is that the ETC funds do not belong to Digix, they belong to token holders, and we cannot claim the ETC or ETH for ourselves, as they belong to Digix Dao. On top of this, Digix development is happening on the ETH main chain, so the ETC cannot be effectively governed with DigixDao tokens.” He went on to say, “I think the main point that people need to understand is that DigixDao didn’t hold a crowdsale where devs get access to the entire pool of funds. The funds belong to DGD token holders, for the creation of a real Dao.”
With 2 million DGD tokens outstanding, there will be approximately 0.23 ETC returned for every 1 DGD token. The Digix team is currently working to implement a smart contract for the distribution of the funds.
Bradley Fink has been living in China since 2012. A professional writer, he likes to follow all things blockchain, as AI and the Internet of Things connect the world around us.
COMMENTS(34)
thats awfully decent of them
Ironically, I’ll be receiving more than my initial usd investment in the DGXDAO ICO from a totally different coin, one created by an altogether different DAO that was rushed to market.
Will this be going to DGD holders or DGD classic holders?
Ill be putting my ETC right back into DGD
At $8/ETC, and 465,000 ETC being distributed to token holders, they are giving $3.72M USD which comes out to $1.86/DGD. That means for every DGD you own, you get a free $1.86. This is happening very soon.
Digix (DGD) is an absolute steal right now. These other dapps, Augur/Golem have market caps of $200M! Digix is at $70M, and they have $50M in funds. That means if you value the company at over $20M ($70M cap minus $50M in funds), then this is a buy. This is one of the first dapps ever, with an amazing team, that is bringing digitized gold to the blockchain. They are providing a stablecoin that can interact with all Ethereum dapps. Augur mentioned potentially using them. They partnered with TokenCard so you’ll be able to spend Digix gold via debit card! They are launching in 1-2 months, and you don’t think this company is worth more than $20M? This might be the only undervalued token in the entire inflated cryptosphere right now. No, it’s not on Poloniex. But figure out how to buy some. You can PM me for info too, lol.
Disclaimer: I am obviously pumping my coin, but that does not take away from the fact that everything I said is true. I believe in this project just like many other smart crypto enthusiasts do. This thing is going to take off whether you are a part of it or not.
DGD holders. No one has been keeping track of any DGD classic afaik. It doesn’t account for anything or have any value.
Do you know this for sure? It would be the contract on the classic chain that holds the ETC.
Shouldn’t this drive the price of ETC down.
So if I get some DGD now I’d get some ETC when this happens?
Yes. That is exactly how this works. You will get approximately $1.86 per DGD (from when I calculated last).
At $8/ETC, and 465,000 ETC being distributed to token holders, they are giving $3.72M USD which comes out to $1.86/DGD. That means for every DGD you own, you get a free $1.86. This is happening very soon.
Digix is one of the first dapps ever, with an amazing team, that is bringing digitized gold to the blockchain. They are providing a stablecoin that can interact with all Ethereum dapps. Augur mentioned potentially using them. They partnered with TokenCard so you’ll be able to spend Digix gold via debit card! And they are launching in 1-2 months! They have $50M left in funding, and part of that will get spent expanding to other precious metals. You’ll be able to buy gold, silver, platinum, all on the Ethereum blockchain! I truly believe Digix will be one of the dapps with MASSIVE adoption. You may not have heard much about Digix lately because it is not on any of the major exchanges, but they had their crowdsale over a year ago, and are currently undergoing their final security audits before launch. It is an exciting time to be in the Ethereum space!
Who knows what is going on on the Ethereum Classic chain. But this article is about what is happening with DGD on the main, Ethereum chain.
If only I could figure out the fuck to convert the REP in my Jaxx wallet to DGD.
lawyers
I was trying to explain this to a friend, I opened my mouth and just gave up before I even said a word.. 🙂
If DGD votes are required to unlock funds
The DGD votes on classic are not redeemable
misleading title.
From the article:
“the ETC funds do not belong to Digix, they belong to token holders, and we do not have any freedom to take the ETC without token holder approval. ”
Do you actually know this or are you just assuming it. How will votes on the Ethereum chain unlock the funds on the classic chain?
I mean, the transactions wouldn’t even be mined main chain I’m not sure what you’re saying
Ahhh ok now I get what you’re saying, thanks for clearing that up.
In that case you probably know better than me….If you do figure it out and you remember me, pm me with your findings, I’m interested in the answer
In an interesting development, Singapore based Digix Global, a company that plans to bring physical gold-backed tokens to the Ethereum blockchain, recently announced that it would be returning 465,000 ETC to holders of DigixDao (DGD) tokens. In an industry currently riddled with scams, fake ICOs, theft, and blatant self-interest, this is a pleasant surprise from what is considered one of the top development teams in blockchain technology.http://news.8btc.com/digix-to-return-465000-etc-to-dgd-token-holders
Shapeshift
At current valuations, DGD looks like the best ROI ethereum based project right now.
I’ve tried. My REP is in my Jaxx wallet and every time I try and move it I get a bad jump destination error.
You’re pasting in the address that shapeshift is giving you? If you’re still having issues, move the REP tokens to a MEW and transfer from there.
Yeah. I entered my genesis eth wallet address as the to and from address. Then shapeshift said deposit amount to this address. Hopped on Jaxx, entered the address, entered my account balance, pressed send, and boom error while still charging me a transaction fee.
Edit: I’ll look into creating a MEW.
But this article is about what is happening with DGD on the main, Ethereum chain.
Is it? If DGD votes are required to unlock funds then that must happen on the classic chain because there is not ETC on Ethereum.
EDIT: Guys before down-voting understand that I am asking a question not advocating for anything. There is a technical problem here that people are not understanding: https://www.reddit.com/r/ethereum/comments/69bu16/digix_to_return_465000_etc_to_dgd_token_holders/dh5p1d3/
Is this being distributed to current DGD token holders or back to the ICO contribution addresses?
At current valuations, DGD looks like the best ROI ethereum based project right now.
Not even close.
There are people here who have been holding Maker (MKR) since $3.
Current DGD holders.
Can someone here explain to me how to access my ETC? I go to gastracker.io and see I have them…how do I access?
The digix contracts where duplicated, one exists on the classic chain and has ETC locked in it and one exists on the main chain and has ETH locked up in it. Neither contract is aware of what happens on the other chain and both consider the tokens to be the owners of the funds locked in the contract.
The article claims there is a voting mechanism where token holders can vote to release funds. This logic would be the same on both chains but the distribution of tokens would be different on both chains. Its not true that no one is keeping track of what goes on on the classic chain, the smart contract is keeping track and still thinks that DGD-classic is the owner of those funds. Unless of course there is a backdoor that allows a central party to claim the funds on the classic chain but the article seems to say that no such backdoor exists.
So imagine for a second that a proposal is made to send all ETC to a contract that distributes the funds to a snapshot of DGD-mainchain holders. The smart contract holding the ETC is on the classic chain and only knows about the distribution of DGD-classic funds when it goes to evaluate a vote.
What is someone holding large amounts of worthless DGD-classic going to do? Well they are not going to vote to have the ETC go to someone else, they are going to want the funds to go to themselves and if enough of them get together they will have the majority vote according to the smart contract that exists on the classic chain.
Do you see the problem. I hold a small amount of DGD on the main chain but I looked and my balance does not exist on the classic chain. I have no vote that can help unlock the ETC!
The contradiction has been resolved. when digix says
we do not have any freedom to take the ETC without token holder approval
They do not mean they cannot possibly move the funds without token holder approval. They actually can physically move the funds however they want. In this case they choose to distribute the funds to DGD holders because they want to. Its not a lie, in a legal and ethical sense the statement is true, the funds are not theirs to take.
how does this reimbursement work really?
if I buy from oasisdex now, will I get that $1.86?
DGD classic has no value
The voting will be on the ETH chain, they’ll take a snapshot of DGD balances at some block and (if the voting passes, which it would) then distribute the ETC to these addresses.
ETC will be manually split from ETH and distributed to the DGD holder addresses.
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