- The Digix community site has successfully passed a proposal on Project Ragnarok, which was a protocol that would return the invested ether in the Digix project.
- It is currently estimated that DigixDAO holds approximately 386,000 Ether ($64 million).
- The main reasons behind the liquidation can mainly be attributed to the lack of community support or interest in the DAO.
The Digix community site has successfully passed a proposal on Project Ragnarok, which was a protocol that would return the invested ether in the Digix project. Respectively to all its investors who were to date, held in the Digix project’s treasure, which was managed independently by a decentralized autonomous organization (DAO) called DigixDAO.
It is currently estimated that DigixDAO holds approximately 386,000 Ether ($64 million). Now, as the proposal has been passed, the token holders can withdraw funds from Digix and redistribute the funds or refund the Ethereum on the platform.
DigixDAO is the first decentralized autonomous organization for Ethereum, and its goal was to value gold on the Ethereum network. The Digix project initially included two tokens, the DGX token, and the DGD token. The DGX token was Ethereum representations on the blockchain valued against physical gold bullions that were held in a Singaporean safe house.
The DGD was a governance token over DigixDAO that represented equity in the DAO. DGD holders could participate in the company’s decisions by voting, hence introducing the “decentralized” aspect of the organization. There would also be the added benefit of being able to receive DGX transaction fees and demurrage fees.
The Digix project was kicked off by Digix Global in 2018 with its DGX token going out as an ICO in 2016, raising 465,165 Ether (then valued at $5.5 million). The DigixDAO platform was later created in 2019 to decentralize its treasury. There have been over 50 projects that have been submitted to develop the DGX ecosystem.
During the run of the project, DGD holders kept pushing to replace the DGD tokens with the ETH held within the DAO, with some even going as far as to suggest dissolving the entire DAO. And finally, in November 2019, Digix Global decided to liquidate all the tokens and return the funds to the remaining DGD holders.
The main reasons behind the liquidation can mainly be attributed to the lack of community support or interest in the DAO. The DAO website was also complicated to use, and also, the DAO was functioning very inefficiently, and team performance was not up to par.
The operating company seems to be against the dissolution. Still, the community vote has been passed. However, it is to note that even if the DAO is fully liquidated, their core business will keep going, and DGX will still be distributed, and other project ideas to expand the ecosystem will always be appreciated.