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This is not true, as far as I understand: The vast majority of DAI is backed by fiat currencies via a complex mechanism involving multiple outside parties. The earliest version of DAI was envisioned as being 100% unbacked, but the collateral requirements to make that feasible ended up being prohibitive.

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No, currently DAI is backed by Ethereum. You only need to spend one minute on their website or subreddit to get this information. I follow them for a long time and never even heard of them being backed by fiat. They only try to use virtual goods like virtual gold, cryptocurrencies etc. as collateral.

Virtual gold is not "backed by ethereum" it is backed by gold. These are obviously the third parties I'm talking about.

Dai is not backed by Ethereum. Dai is backed by Ether.

Okay Mr. Pedant. Actually Dai isn't backed by either one. It's backed by an ERC-20 token called Pooled Ether.

No, you may be thinking of something else. DAI is backed by Ethereum held in a smart contract. It's not collateralized by fiat currencies right now.

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