DigixDAO has announced its set to settle off its aggrieved DGD Holders, just after carrying out its ICO in 2016.
Based on reports, DigixDAO investors voted for the company to approve the return of its 2016 ICO funds. Therefore, leaving the company at the brink of collapse. Since the decision came from about 95% approved votes out of its 56 stakeholders.
It’s noteworthy that this is the first time dissatisfied holders of DGD want their money back.
Project Ragnarok takes place every DigixDAO quarter gives dissatisfied members an opportunity to leave the project.
In order words, the project is a dissolution plan that maps out a model for dissatisfied members to get a refund. The notice stated that “mechanism for dissatisfied DGD token holders to make a clean break from DigixDAO.”
Besides, DigixDAO pointed out that the company won’t be closing up shop despite the massive payout. The investors leaving reportedly receive 0.19 Ether for each DGD. Therefore, the dissolution leads to the liquidation of $64 million of the company’s treasury.
However, the company promised to remain active, stressing that project Ragnarok won’t take it off the market. The company said it’ll only offer those dissatisfied with its performance the ability to exit back to Ether.
Notably, Digix itself wasn’t in favor of the proposal and abstained from voting.
DigixDAO, a decentralized autonomous organization that creates a cryptocurrency backed by bars of gold.
Besides, DGD stands as the native Ethereum-based ERC-20 cryptocurrency token governing the Digix network. The value of the DGX is reportedly pegged to one gram of gold.
The company held its initial coin offering in 2016. During this period, DigixDAO raised over 450,000 ETH.
The DGD tokens (also security tokens) whose value depends on the stability of the DigixDAO. Besides, the DGX tokens are commodity tokens designed to represent a physical store of gold.