The project tokenization of physical assets Digix after a two-year period
development today runs in the main Ethereum blockchain its first product – a stable cryptocurrency DGX, representing the tokens of the standard ERC-20.
Each token corresponds to 1 gram of gold stored in a vault of Singapore in 100-gram bars. The presence of collateral is confirmed by periodic audit and inventory documents of the repository are in open access on a distributed file system IPFS. Any holder DGX can be in the store and get the physical metal in exchange for their tokens.
According to a press release, March 26 registration starts wanting to buy the DGX on the official market area Digix, which will last for two weeks. The registration includes a KYC (Know your customer). Selling tokens DGX will be open on 8 April.
Due to the uncertain regulatory situation, citizens of the United States, China and Japan will not be able to purchase the DGX directly from Digix. However, tokens will be available to everyone and without registration on exchanges, the first of which will be a decentralized market Kyber Network – DGX will be sold on it since April 16.
Check the retail buyers
To register, you must submit Digix following information:
e-mail address and connection of two-factor authentication via Authy or Google Authentificator.
A scan of national passport or identity card.
Proof of residence: a scan of Bank documents or receipt of payment of utility bills for the last three months.
Verification through web camera (or photograph).
At first, selling the DGX will be capped at 10 DGX per day per customer.
When buying a DGX on the secondary market no identification is required (DGX – the usual token ERC-20), however, if the user are in store for the physical metal, it will still have to provide the entire set of documents.
Accurate price of gold on the marketplace Digix is still unknown, but the experience platform DGX on a test network allows us to assume that at system startup, it will be on 2 – 3% more than the spot price of gold on the LBMA. Allowance will decrease with increasing volumes sold DGX.
Applications licenzirovanie gold DGX
Tokens DGX do not have the pricing volatility inherent in the cryptocurrency. However, the price of gold in dollars also may experience significant fluctuations, however, their speed and amplitude are much smaller. The chart below shows how varied the price of gold from 2000 to 2018.
Stable cryptocurrency can be used for purchases of real goods and assets. Many sellers are afraid to accept payment for goods is a cryptocurrency due to its volatility. In this market stabilogram DGX will have to compete with tokens Dai, the cost of which is pegged to the U.S. dollar. It will be a very interesting competition because Dai and DGX represent diametrically opposed concepts stablein. While Dai is decentralized and is provided solely digital assets from different blockchains, the DGX has a very real embodiment of the «material» world is a store of gold, which makes this stabilin centralized. Protection against regulatory threats is friendly to cryptocurrency jurisdiction – now it is Singapore, and in the future there will be Switzerland.
Another area of application is the collateral here, DGX and Dai are partners. Three months of operation of the platform Dai showed her vulnerability, if the collateral is only used ETH – several times the price of the air collapses by more than 30%, which has led to numerous margin calls and forced liquidations of collateral positions (CDP). As a result, now with a minimum requirement for Deposit (collateral) 150% of the amount issued by Dai, the average level of collateralization platform is from 260 to 300% – the only way the owner of CDP can protect from forced liquidation and losses in the event of a sharp selloff. Dai version 2.0, scheduled for release on the second quarter of 2018, will accept as collateral positions of a set of tokens. In this case, the use of DGX in collateral positions will keep her collateralization close to the limit is 150%, not to freeze additional funds.
Of course, this application the DGX is not exhausted. As shown by the two-month experience DAI, users will quickly find other options use the DGX.
The prospects of the project Digix
Events of the end of 2017 and the first three months of 2018 showed that the main threat to the cryptocurrency industry are not technological challenges or hackers, and regulatory structures of different States, trying to «connect» crypto freemen with regulated assets of the real world. This is a serious blow to the Digix was the inability to start in China, Japan, which were pinned great hopes, and the United States. Nevertheless, there remains Europe, India and South-East Asia. Moreover, the advantage of the DGX over other centralized stablename the type of Tether is that in the case of large-scale global banking crisis, storage of precious metals will be «deep defense», not at the forefront of the crisis.
Regulatory uncertainty is causing delays in the launch of the governing body Digix – DigixDAO. According to the original plan, the entire structure needs to implement the governing DGD token holders (not to be confused with the DGX!) through the ballot. They also receive income from commissions Digix. However, it is still smart contracts, DAO is not running and operational management of exercises developed by a Singaporean company Digix Global. According to CEO Kai Ching (Kai Chng), the team still expects MAS – the highest financial authority of Singapore, clear explanations of his position on the Digix DAO – what you can do, and what not.
As for the technological part, it is possible to see how to begin to start projects of Ethereum, founded in 2014 and 2015: the first was with Dai Maker, started on 17 December and the next becomes the Digix, which is held the first ICO on the blockchain Ethereum March 30, 2016. Interestingly, the amount collected for ICO – 466 646 ETH, is still intact in the wallet Digix. How will you use these tools, will decide the holders of the tokens DGD, when the control system of DAO will still be running.