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DigixDAO Will Be Dissolved - DGD Holders Supported the Decision With 96.7% of the Vote

ETH
8.73%
DGD
9.62%
DGX
2.21%
3M agocoincodex
bullish:
0
bearish:
1
DigixDAO Will Be Dissolved - DGD Holders Supported the Decision With 96.7% of the Vote

Key highlights:

  • In a lopsided vote, DGD holders decided to dissolve DigixDAO
  • DGD holders will be entitled to a refund of approximately 0.193 ETH per DGD
  • Digix and the gold-backed DGX token will continue to operate

Holders of DGD, the token that’s used to influence the governance process of the DigixDAO (decentralized autonomous organization), have voted in favor of dissolving DigixDAO

Through DigixDAO, users could submit proposals for improving and expanding the ecosystem surrounding DGX, a gold-backed token. If the proposals received enough support, the projects would receive funding from DigixDAO’s ETH holdings. DGD holders are also entitled to some of the fees associated with trading DGX.

DGD holders will get approximately 0.193 ETH back per DGD

However, DGD holders seem to prefer getting ETH back in exchange for their DGD tokens instead of continuing with the DigixDAO platform. The DGD holders went overwhelmingly in favor of dissolution, with 96.7% of the total vote.  

In the description of “Project Ragnarok”, the name given to the DigixDAO dissolution proposal, the Digix team said that they are not in favor of dissolving DigixDAO but abstained from voting to respect the decision made by the wider community of DGD holders. The team said Digix and DGX tokens would continue operating even in the event of a DigixDAO dissolution.

“DigixDAO is a platform created by Digix, and the core business of asset tokenization and the DGX gold tokens will remain even if dissolution occurs. What will only deprecate is a platform that can fund volunteer projects around the Digix ecosystem via DigixDAO.”

According to the formula provided in the dissolution proposal, DGD holders will be entitled to a refund of approximately 0.193 ETH per 1 DGD token. This has led to a price spike in DGD, as the token was changing hands below this rate on the open market. On the most liquid ETH/DGD pair (Binance), DGD is currently trading at 0.188 ETH, so there’s still some room for arbitrage.

DGD holders will receive their ETH refund some time after the current DigixDAO quarter ends on March 24. However, the exact timeline of the refund is currently unknown. 

3M agocoincodex
bullish:
0
bearish:
1