DigixDAO, which is a Decentralized Autonomous Organization creating a cryptocurrency backed by bars of gold, is offering its DGD token holders an all-or-nothing option one is completely dissolve its treasury and another is keep making grants to enhance the ecosystem. Since the early sale back in 2016, when DGD raised 466,648 ETH in token sale, Dixit had a high response. The CEO of the organization paid a comment for a mechanism for dissatisfied DGD token holders to make a clean break from DigixDAO. The comment referred to an approach that token holders will now be able to vote on keeping the DAO’s ETH treasury intact. After the announcement made, the token price got doubled. As a project the function of Dixit is to hold physical gold and represents it with tokens on the ethereum blockchain throughout its DGX token.
The decision made by DigixDAO echoed all across the industry about whether more projects should follow suit. Ryan Zurrer, an investor who founded Dialectic, wants to see a world where projects imprint an unsoiled direction with obvious budgets and then explore their treasuries as necessary. He was searching for such a personality of Carl Icahn to enlarge such a culture in our industry where it’s not OK to just sit on tens and even hundreds of millions of dollars in investor capital. Zurrer made a research on the topic and on the basis of his research he said ICOs that ran sales before the peak of the bull market in 2017 are sitting on mammoth resources because of the underlying crypto raised has appreciated. Nic Carter of Castle Island Ventures consented to his opinion saying he has been waiting for ICOs with a big balance sheet to do this long time.
Ricky Li, co-founder of Altonomy, is offered a light different remark on this saying as ICO raise money in order to develop token, they are not likely enthusiasts of buying back the tokens with their treasury holdings. Zurrer doesn’t want to entitle it as all-or-nothing because if a company has excessive treasury then it could redistribute part of its treasury. Others are saying that the move by DigixDAO would be widely replicable. Though the project has unique features it’s hard to understand how long it will go. A few tokens will become very interesting token-activist opportunities but not all. Zurrer hopes that 2020 is going to bring a number of this type of situation to the fore. Dixit encouraged the community not to wind down DigixDAO but would abstain from voting its DGD holdings either way.