HitBTC an exchange based in Hong Kong will start the process of refunding Digix DAO (DGD) users whose tokens were formed on Ethereum main Blockchain before the hardfork took place. It is pertinent to mention here that Digix Dao has had a successful Initial Coin Offering (ICO) last year when they had raised 465,134 ETH before the Ethereum hard fork happened.
This refund comes after DigixGlobal Pte Ltd, Digix DAO administrator made an announcement. In this respect, all DGD token holders during block no. 3,800,000 (corresponds to nearly End May 2017) will be given Ethereum Classic coins. Ethereum Classic (ETC) were formed on the Ethereum on Ethereum main Blockchain before the hardfork.
ETC Bonanza by Digix Dao made easier by HitBTC
Digix Dao users are to receive Ethereum Classic (ETC) on top of their existing DGD holdings. The refund process that will be initiated at end of May will be made easier and simpler for HitBTC account holders.
The entire process of the refund has been simplified to the extent that no real user participation is required. The users of DGD do not have to do much when it comes to converting their tokens to ETC.
All DGD holders that are account holders on HitBTC will get ETC refunding automatically. Users can deposit their DGDs to their account on HitBTC if they want conversion done, if they already have their DGDs on the exchange wallet, they can let them be as they are.
HitBTC advises other DGD holders who are not currently HitBTC clients to take actions as per the guidelines issued by Digix Dao.
Technical details behind the refund
The HitBTC team informs Cointelegraph that it was after an internal study and consultations that Digix took the decision to refund ETC to DGD holders. HitBTC will be assisting Digix in this by enabling DGD token holders to redeem their tokens for ETC in an easy way.
In order for the refund to work a special Ethereum based token called DGDR will be created and given to people who hold DGDs. Initially, one DGD will fetch one DGDR. DGDR will be available on top of existing DGD balances. A designated snapshot time of block no. 3,800,000 has been fixed and at this time all DGDR holders will receive about 23.255 ETC per 100 DGDR.
It should be noted that HitBTC will suspend all operations concerning DGD at May 30, 2017, at 1300 hrs UTC, which will enable them to handle their users’ DGD tokens before the snapshot.
Exchanges working with DigixDao
In order to pull off a smooth refund process exchanges are working with Digix DAO, which has given out a set of instructions for the process. In a five-pointer to exchanges, Digix DAO states that before the snapshot, exchanges should block and disable deposits, redemptions and trading of DGD. On the snapshot block, they should move DGD into a single account/multisig.
After the activation block, they should call the redeem method on the token. Thereafter exchanges should credit DGD holders with their proportion of the redeemed ETC and then re-open trading, deposits and redemptions.
What about DGDs in a contract wallet?
It is being advised by Digix DAO to move your DGDs from a wallet contract to a regular wallet before the snapshot block. If a DGD user has funds in a wallet contract that can execute the ‘redeem’ method they are going to be no problems concerning refunds.
Digix DAO has stated with regards to those who miss the deadline for moving out of a wallet contract that they would be manually processing requests to move DGDR tokens, however, a proof of ownership may need to be provided.
HitBTC has simplified the way DGD users can access their extra ETC after the refund is made. This will greatly benefit people who do not have to be especially technically skilled to access the extra coins that they would be getting. It highlights once again how exchanges, when they work closely with coin issuers, can create a seamless experience for coin holders.