Gold-backed stablecoin issuer Digix has integrated a dissolution machinery into its DigixDAO platform, created to fund projects which encourage the growth of the Digix ecosystem. Each quarter, DGD token holders will vote on the mechanism — chosen Project Ragnarok — with DigixDAO just continuing into the next quarter if the dissolution vote fails.

The beginning Project Ragnarok proposal was recently submitted to the DigixDAO for voting, although the concept was first appear in a blog postal service on November. 29.

Why innovate a dissolution mechanism?

Digix makes articulate that its position is firmly opposed to dissolution, as it believes that the Digix Gold (DGX) ecosystem would not have grown as it has without the support of DigixDAO community members. Due to this bias, it will abjure from voting on any dissolution projects.

All the same, feedback received from those who accept participated in DigixDAO has been mixed. I recurring request has been for a mechanism so that DGD token holders can make a clean break from DigixDAO.

Subsequently considering a number of options, including a fire contract whereby DGD could exist swapped for a proportion of the Ether held in the DigixDAO, Digix decided on a quarterly vote on dissolution.

And if dissolution vote passes?

If the dissolution vote passes, all of the remaining ETH in the DigixDAO fund, after other quarterly passed projects have been funded, volition exist returned to DGD holders. The DigixDAO volition and then non continue into the side by side quarter.

Digix and DGX tokens will continue to be, but the platform for funding projects effectually the Digix ecosystem, will not.

Digix is one of a number of gold-backed stablecoin issuers, existence one of the outset to market, with a beta platform launched in January 2022.