DigixGAO, behind the DigixDAO ICO project, is considering the possibility of returning 386,250 ETH (more than $ 57 million at the current exchange rate) to DGD token holders, The Block reports.
Back in 2016, DigixGlobal raised more than 460,000 ETH (worth $ 5.5 million at the time) in the hope of “transferring gold to the blockchain” using an economic system based on two coins:
- DGX - a token allegedly secured by gold held by The Safe House, a Singapore-based company;
- DGD is the management token of the decentralized autonomous organization DigixDAO, responsible for managing funds raised during the ICO.
DigixDAO currently stores 386,250 ETH. At the same time, 335,450 ETH are in offline stores, and 50,800 ETH in online wallets.
DGD's market capitalization is currently $ 24.6 million. Thus, provided that the current price proportions between ETH and DGD are maintained, DigixDAO investors can profit after the liquidation of the project storage.
Earlier, DigixDAO holders supported a proposal involving the burning of DGD tokens in exchange for ETH from the company's storage. However, DigixGlobal opposed this proposal for fear that the US Securities and Exchange Commission (SEC) would consider the coins of the project as securities. The co-founder of the company, Kai Chan, noted that he would prefer such a mechanism to completely eliminate the DigixDAO storage and, consequently, close the project.
Now the founders of Digix plan to submit a proposal to the vote, which will last about one month. According to Chan, the DigixGlobal team owns at least 8% of DGD tokens. If at least 60% of investors vote in favor of liquidating the repository, then the project participants will free up funds for working on other projects.