DigixDAO Is Dissolving: Everything You Need To Know

As it was widely discussed, DigixDAO is dissolving after the community vote and more than 380,000 ETH held in treasury funds will be distributed to the DGD token holders starting next month so let’s read more about it in the following DigixDAO news.

The funds only represent the remained ETH coins totaling 450,000 which were raised in DigixDAO 2016 ICO. The other 70,000 ETH was used to fund projects in the ecosystem which include marketing efforts, exchange support, and community management which was centered around the DGX token which is a gold-backed stablecoin. As we read further, we find out why DigixDAO is dissolving and what the token holders will have to do in the upcoming months.

A member of the DigixDAO community submitted a proposal through the governance platform for treasury funds to be returned to the investors in exchange for their DGD tokens. The proposal was titled ‘’proposal for a DGD to ETH burn function’’ which was voted upon the community. The quorum was met and the quota requirement of 50% was not reached so the proposal was not passed. It was revealed that the founding team voted against this proposal but without the vote, the quota requirement was not met.

After the feedback from the community, the second proposal was announced by the team of Digix. Rather than a simple burn function, this was actually a dissolution mechanism. This time the entire team didn’t vote but contributed to stake their vote to assist the reaching quorum which happened in November 2019. Later, the voting for the project Ragnarok completed so the proposal was passed and the outcome was voted in favor of the dissolution with 96.7% voting in favor. During this favor, the dissolution process is locked in and proceeded the next DigixDAo quarter which starts March 2^nd this year.

The smart contract was supposed to handle the distribution of treasury funds which was written and audited by Quantstamp so the dissolution process will start on March 25^th. All of the token holders that have their DGD stored on the exchanges are recommended to withdraw them so it is likely that the DGD will get delisted after the dissolution process. All of the tokens will be able to be unlocked by the holders at the end of Q1:

 “To claim their ETH, DGD holders will need to submit two transactions on the Ethereum blockchain, to “suicide” their DGD tokens. This can be done in MyEtherWallet. A tutorial will be provided by Digix, closer to the date.”