Store Your Gold Digitally With Digix Gold Tokens (DGX)
The failure of most crypto project of the past 9 years can be traced to the fact they usually don’t have a working program, it’s not scalable and there’s a lack of an actual use case. These, coupled with the fact that most can’t function outside the blockchain bubble, or can’t be used by people outside the crypto industry, leads to their failure. This is why it is quite exciting and refreshing to see a project with a working product that fully leverages blockchain technology. A perfect shining example of such a unique and outstanding project is the DIGIX platform. Let’s go deeper into this project overview.
About the DGX Tokens
DIGIX is using blockchain technology to reinvent Gold as we know it.
For those who don’t know this, Gold in its pure form (Bars) are quite expensive and difficult to keep safe.
With DIGIX, physical gold bullion can now be converted into blockchain-based tokens, which can then be stored in simple mobile or desktop wallets.
Users of the DIGIX platform can now hold, send and exchange gold in a digital way with the confidence that their asset is securely stored and insured within vaults in both Singapore and Canada.
How the Digix Gold Tokens (DGX) is Issued
The issuance of the token (minting) will only occur when gold is added to custodial vaults in either Singapore of Canada. Developed on the popular Ethereum blockchain, Digix’s proof of provenance system ensures that 1 DGX token always equals 1 gram of gold secured in these vaults. These minted tokens are primarily sold through the Digix marketplace, but once in circulation can be traded or sent freely on the Ethereum network. Token holders can rest assured knowing that their DGX is backed by physical gold, and there is even an option to physically redeem the gold in Singapore.
To review and keep track of the total number of DGX issued, an online Asset Explorer is made publically available with all documentation and audit reports uploaded.
Further more about costs that accure when you use this service.
There are two types of fee structure associated with the dealing in DGX tokens.
The first fee is a demurrage fee that amounts to about 0.60% annually. Currently the demurrage fee has been switched off indefinitely with Digix covering all storage and insurance costs.
The second fee is a 0.13% transaction fee when transferring DGX with an Ethereum wallet. This fee will be automatically removed from the DGX balance when the DGX token balance is next moved on-chain.
Another important fee is the one associated with recasting DGX tokens into physical gold bars. This is basically a reverse process of how the DGX tokens are being minted. The fee for this process is set at 1%, so to recast a 100 gram bar it will cost you 101 DGX within the Digix Marketplace.
Importantly, anyone recasting gold in this manner must make sure the gold bar they want to claim is in a multiples of 100 grams. The gold bar will also need to be picked up in person from Singapore.
The Purpose and Goal of the Digix Gold tokens (DGX)
The launch of the DGX tokens is going to help solve two problems.
First, it will be easier and cheaper to own and liquidate gold assets.
Secondly, it will help solve the problem of stability faced by most stablecoin currently in the market.
The Digix Gold tokens (DGX) is one of the few tokens on the market still performing smoothly despite the bearish market. The coin which has a market cap of about $5.3 million is currently priced at $45. If looking for a hedge against a market change, or just wanting to have exposure to gold in a digital way, have a look into DGX Gold Tokens.