DigixDAO Members Vote to Return $64 million ICO Treasury to Investors

Members of the DigixDAO Community have voted and approved the turn of the platform’s ICO treasury, currently worth $64 million in ether, to DGD holders.

Out of a total of 56 votes, 95% supported the so-called Project Ragnarok, to return the ICO funds to investors. For each DGD token, investors will now be sent 0.19 ETH. Each DGD token is linked to physical gold bullion that’s represented through it on the Ethereum network.

Back in 2016, the DigixDAO raised a total of 450,000 ETH, then worth around $7 million, via its initial coin offering. In two different addresses, it now holds around 380,000 ETH worth around $46 million, which is going to be transferred to a DigixDAO Refund Contract so investors can have the funds back.

The vote was conducted after the project’s developers responded to community requests with a “mechanism for dissatisfied DGD token holders to make a clean break from DigixDAO.” The answer was Project Ragnarok, which allows some users to get a refund. Those who want to keep on investing in the DAO can do so.

Digix itself wasn’t in favor of the proposal and as such abstained from voting and doesn’t plan on shutting down. Digix has, according to CryptoCompare, issued two tokens: the DGX token, which is backed by one gram of physical gold, and the DGD token, used to govern the DigixDAO.

The DigixDAO ICO was one of many that raised millions during the 2016-2017 initial coin offering craze the took over the space, and saw many take advantage of investors looking for tokens that had potential to appreciate. As reported, one ICO scammer has been sentenced to 18 months in prison over his actions.

Featured image via Pixabay.