DigixDao is often explained as a “stablecoin” – a coin not as volatile as most of the others. Developers define DigixDao idea as a new cryptocurrency backed by actual bars of gold.
DigixDao is a Digix Decentralized Autonomous Organization, meaning that all decision making about DigixDao’s future happen due to the votes of decentralized group of participants – DGD token holders. Those decisions are rewarded with DGX tokens backed by one gram of gold. All of these features aim to launch a stable and convenient way to store cryptocurrency.
In order to assure customers that every DGD token being backed with actual gold, the DigixDao team uses a Proof-of-Asset algorithm that certifies assets with the involvement of three entities: the Vendor, Auditor and Custodian. The Vendor sells certified gold bars, the Auditor checks the quality and quantity of the gold, and the Custodian stores the gold in a vault.