DIGG

BadgerDAO is a decentralized autonomous organization (DAO) run by holders of the BADGER token. Its governance framework is based on the Aragon company template. This page provides an overview of the main decision-making mechanisms of the DAO.

At its core, Badger is run by its community members. As such, major changes to BadgerDAO go through a full-community approval process known as Badger Improvement Proposals (BIP). Some actions that have required BIPs include: adjusting fees for Vault products, committing treasury funds to support grant programs, and making major purchases such as the badger.com domain name.

DIGG is the first decentralized, elastic supply crypto asset pegged to the price of Bitcoin and governed by BadgerDAO.

Unlike custodial forms of BTC on Ethereum, DIGG is not backed by Bitcoin under management. Instead, DIGG relies on parameters built into its smart contracts in order to maintain a loose peg to BTC.

Every day, a "rebase" occurs. If the price of DIGG is greater than 1.05 BTC, a positive rebase occurs and the supply of DIGG in wallets and smart contracts increases. If the price is under .95 BTC, the supply decreases. If the price is between .95 and 1.05 BTC, the supply remains unchanged.

In this way, the smart contract works to push circulating supply of DIGG closer to an equilibrium where the market demands an amount of DIGG such that its price equals the current price of BTC.