Digix DAO is a new form of cryptographic asset in that it is a Decentralised Autonomous Organisation or DAO for short. DAO are basically Companies written in code that are there to perform a set of functions with holders of the tokens voting in relation to the number of tokens they hold.
The Digix DAO gives users the right to profits in the trading of Digix tokens (DGX) which own the right to gold stored in vault in Singapore. So if people trade 20 gold bars per day – the Digix DAO token holders will have the profits of the commission from those trades distributed equally amongst themselves.
Digix DAO is a “Decentralised Autonomous Organisation” – DAO’s are a nascent idea and are therefore not a fully proven concept. The Digix DAO tokens give holders the rights to vote on how funds earned by the DAO are spent and act like shares in a traditional Company.