DigiDollar (DD)

DigiDollar is a decentralized, USD-pegged stablecoin implemented directly within the DigiByte blockchain protocol.

Users create DigiDollars by locking DigiByte (DGB) as collateral in protocol-controlled positions. The amount that can be minted depends on the USD value of the locked DGB, the selected collateral conditions and the DigiDollar system’s current risk parameters.

DigiDollar does not rely on a conventional company holding dollars in a bank account. Instead, its backing consists of on-chain DGB collateral, while a distributed oracle system supplies the DGB/USD price used by DigiByte nodes when validating DigiDollar activity.

Once minted, DigiDollars can be transferred across the DigiByte network. Redemption burns DigiDollars and releases DGB according to the protocol’s lock, collateral and redemption rules.

DigiDollar is not a separate blockchain, sidechain or ordinary smart-contract token. It is integrated into DigiByte Core and enforced by the DigiByte network’s consensus rules.

The DigiDollar soft fork became active on DigiByte mainnet at block 23,869,440 on 17 July 2026. DigiByte Core v9.26.5 is the first maintenance release issued after mainnet activation.

DigiDollar is implemented inside DigiByte Core and validated by DigiByte consensus rather than operating through a separate blockchain or third-party token contract.

New DigiDollars are minted by locking DGB in collateral positions. DigiDollar supply therefore changes according to user minting and redemption activity.

DigiDollar is designed to track the value of the US dollar using an on-chain DGB/USD price feed supplied by multiple oracle participants.

The production oracle design reserves 35 oracle slots and requires a seven-signature MuSig2 Schnorr threshold for consensus on mainnet.

DGB collateral is committed under protocol-defined lock and redemption conditions rather than being held by a centralized stablecoin issuer.

The protocol includes Dynamic Collateral Adjustment, Emergency Redemption Ratio rules and volatility protections intended to manage changing collateral conditions.

DigiDollar transactions settle on the DigiByte blockchain, which targets approximately 15-second blocks and is secured through DigiByte’s multi-algorithm Proof-of-Work network.

Risk Disclosure: 

DigiDollar is a newly activated and experimental stablecoin protocol. A one-dollar target does not guarantee that DigiDollar will always trade or redeem at exactly one US dollar.

The system depends on the market value and liquidity of DGB, protocol collateral rules, oracle availability, oracle price accuracy, wallet implementation and continued network support.

Sharp changes in the value of DGB may affect collateral requirements and redemption outcomes. Users should understand the selected lock period, collateral position and current protocol conditions before minting DigiDollars.

DigiDollar does not represent a claim on dollars held in a bank account, and there is no centralized company guaranteeing redemption with fiat currency.

The implementation is open source and has undergone extensive project testing, but no independent third-party security audit has been publicly confirmed. Users should treat DigiDollar as experimental software.