Bitcoin token of artificial re-establishment launched worth $ 20 million - but will it succeed?
After weeks of anticipation and a series of closely monitored preparatory steps, the Bitcoin token for artificial re-establishment from Badger Dow, DIGG, is now available and can be claimed for eligible addresses on the Ethereum mainland.
The release will be greeted with enthusiasm by a community that may be over enthusiastic, one that has been filling Twitter with talk of "wen DIGG" for weeks. However, for all the memes and excitement, there is some serious technical weight behind both distributing and maintaining the latest Bitcoin assets on Ethereum.
But in the end, now that DIGG is in the wild market, it is the forces that will determine the long-term success of the synthetic Bitcoin asset - a success that may not be guaranteed.
Fair and steady launch
Now that the token is active, the re-establishment games begin.
Algorithmic stablecoins have been a hot topic in decentralized finance circles over the past few months as one of the most popular medium of trading. Assets, which are primarily intended to track the price of the US dollar, have "re-establishment" features that dynamically expand or contract the overall asset offer based on predefined criteria such as price or time.
However, so far it has proven to be more effective in enriching users who know how to operate refactoring parameters than it has been in creating truly stable assets.
DIGG is possibly the first ever artificial re-establishment bitcoin token, and definitely the first to feature this method of distribution. Users outside the portal will be able to share DIGG in a return vault, or use it to provide liquidity to the DIGG / WBTC pairs on Sushi Sway and Uniswap, hold the underlying asset in anticipation of returning a positive base, or sell the token on the open market.
While there has been speculation about how DIGG will perform and what the best strategies will be, it is ultimately unclear to what degree the asset will be able to commit to the intended link given Bitcoin fluctuations and the launch of the unique DIGG.
In a previous interview with Cointelegraph, Badger Dow founder Chris Spadafora expressed hope that the upcoming additional stability mechanisms would be able to help DIGG track Bitcoin better.
“What we want to do with our treasury system is really what we could call a large-scale 'buy and sell' dictator. So through automated strategies we can buy when the time is right and sell when the time is to improve the return for users.”
Upcoming lockers designed to play re-establishing games are programmatically designed to do so, but given the game's anonymous theoretical landscape, it's impossible to determine if the lockers will be enough to install the DIGG - or what happens after the locker spur dries up.
In the end, after weeks of anticipation, instead of "Wen DIGG?" Badger Dow participants who are lining up to take a spin at the latest new casino should now ask themselves, "What's next?"