DigixDAO is the Digix Decentralized Autonomous Organization, a decentralized group of participants making decisions about how to grow the Digix Global Ecosystem. Participants purchased DGD tokens in the “first ever ICO on the Ethereum Blockchain.”
DGX tokens are created by a smart contract that receives PoA cards and generates DGX tokens for each gram of gold. For example, if a 100g PoA card is sent to the smart contract, 100 DGX tokens are created and sent to an Ethereum wallet. This means Digix doesn’t engage in fractional reserves. Each DGX token always represents 1g of gold and is divisible to 0.001g.