Dash may very well be the first decentralized autonomous organization, or DAO. Instead of other decentralized currencies (including some that have a centralized company or organization behind them), Dash has a loose governance structure and self-funding mechanism: 45% of new coins created goes to miners, 45% goes to masternodes (who invest a considerable chunk of change in the network and therefore get to vote), and 10% goes to the treasury, the self-funding mechanism for the network. This unique system means that Dash is a living, breathing ecosystem that keeps working without any outside help.
This is truly an amazing advancement in how humans organize projects, however we should do our best to wrap our heads around all possible implications. The DAO may very well be unstoppable, and that could mean any number of things for humanity.
Other coins are merely tools, not organisms
It’s important to note when looking at the cryptocurrency market rankings that most are simply tools. The tokens perform a certain function and are priced at a particular rate. This speaks nothing of how many people work directly for the project, how many work indirectly through expanding the ecosystem, how much funding each of these groups has, etc. The lines between “Dash” and “Dash user” are much more blurry. A Dash power user can have a vote on how the whole network is run, or even create a subdivision funded straight from the blockchain with its own employees and mission separate from all currently-operating teams. When another coin’s price goes up, it simply goes up. When the same happens to Dash, the whole organism grows.
The DAO spreads organically, has the focus and efficiency of an organization
Now we have to remember that the DAO is an entirely new experiment attempting to leverage the best parts of different models. Like other open-source distributed cryptocurrencies, Dash is open to global participation: anyone can download the client and start using it, anyone can mine, anyone can buy and sell it or exchange it for goods and services and integrate it into any platform or service imaginable. Because Dash is entirely decentralized, it can spread very quickly without permission or central direction from anyone. However, unlike other decentralized projects, Dash is also an autonomous, self-funding organization. This means that it can have focus and direction, as well as a lot of funding.
Compare models: when another coin wants to grow, its supporters individually have to go out and promote it, and when the price goes up, the community has to intentionally organize, start a crowdfund, and attempt to plan efforts to grow the coin. There is no way of efficiently contacting all users around the world, determining how much extra funding is available, and convincing them to donate to outreach operations and other projects. With Dash, 10% of the monthly new coin supply is available for projects at zero effort, and the whole network can be polled and accessed very easily to establish consensus over what path should be taken next. As simply as calling a corporate board meeting (simpler actually) you can access a global decentralized network and harness its resources to further the project.
The virtuous cycle keeps expanding
Here’s where it starts to get interesting. Every time the price of Dash goes up, more funding is easily available to grow the ecosystem. This in turn adds value to the project, which propels the price upwards. Which brings more funding available to grow the ecosystem. Which attracts more businesses and large players to integrate, invest, and participate, in turn increasing the value yet again… which, you guessed it, means more money in the budget to keep growing the ecosystem. This balloons larger and larger month after month. If another coin drops in value after a price spike, all progress is lost unless developers cashed out at its peak or new businesses integrated based on that temporary bump. With Dash, that extra money went out already to grow the project, increasing chances that the price will go back up again.
We ultimately don’t know how the DAO will turn out
We have to remember that nothing like this has been done before. Decentralized movements have come and gone, disappearing when the momentum behind them fades and due to the lack of firm consensus of direction and sustainability. Centralized organizations have a hard cap on them in the form of their concentrated leadership, their need for continual funding, and their ability to be targeted and destroyed as a single entity. The DAO grows fast and globally without permission or a central body or group to be targeted, and self-funds, meaning it doesn’t need to make a profit. Remember, Dash has no “expenses” in that the network runs itself without any contact with the treasury. All of that funding is free and clear, and the larger the DAO grows, the more is available, without added constraints of the costs of running such a network. This is a new model with potentially limitless growth. Where will it take us? I don’t know. Nobody knows.
What if this thing takes over everything?
Here we get to the eerie side of things. What happens if Dash grows large enough to become the prime sponsor at every single cryptocurrency event globally? The exclusive sponsor? What happens if the Dash network buys every major exchange out there or subsidizes them to have lower fees, forcing competitors out or underground? Can the DAO own or create essential services like power grids, infrastructure, emergency services? How about territory, structures, defense forces? Entire islands and countries? Is it possible that we will someday live in a world where the Dash network owns just about everything, from public services to transportation to entire large-scale corporations? If so, do we even want to live in that world? By when do we have to decide that?
The DAO is incredible. Where will it take humankind? That’s a question all of us may have to start thinking hard about much sooner than anyone is expecting.
I suppose it is the right time to be asking if Dash is going to lead us to a Wall-E BnLCorp type universe. If the model really is as good as we think it is, surely other organisations will adopt it, improve it, and offer competition. It is fascinating to wonder what kind of projects the treasury will fund though… Maybe a space administration.
Pretty much anything and everything. Though, when trustless masternode shares with voting come around, that should make it globally democratic enough to prevent anything too Orwellian from getting funded.
I love how you trash crowd funding model and promote a genius tax, in an article talking about how great this DAO is.
The D in DAO stands for decentralized. Who controls the 10% tax? What if users decide they don’t like this %10 tax, can they vote it out?
This article is garbage. Dash is not a DAO. What happens if the core devs die in a plane crash.
Please explain how Dash is
Decentralized and
Autonomous.
From dash’s website:
The DGBB system allows masternodes to vote for or against proposals, which can then be implemented (or not) by Dash’s developers.
Key words being “(or not)”. Nothing is coded in for automatic governance.
That is not autonomy, that’s totalitarianism.
Even worse is the outsized voting power of master nodes, which gain their master node status by buying 1000 Dash. Literally selling governance to the people with the most money.
“Who controls the 10% tax?”
Is bitcoin and monero taxed at 100% by miners?
User who have the most to lose or gain control how the 10% budget funding is spent or not spent at all.
In the future all user will be able to vote democratically and get a portion of the Masternode rewards.
“What if users decide they don’t like this %10 tax, can they vote it out?”
Yes.
“What happens if the core devs die in a plane crash.”
Then we hire a new Dev team.
What about calling it a DAO?
Please explain how the dash governance mechanisms make it a decentralized autonomous organization.
Its right there on the dash website. Things can be proposed and voted on, but they ultimately decide if they want to implement it. Do you really think they will accept a vote that removes their tax?
Dash’s governance system is entirely off chain. They have a CEO, and no dash based voting can remove him from power.(and there probably shouldn’t be).
The only way users can force changes on dash, is by forking and creating a new crypto currency.
You haven’t thought about crypto currency governance, and certainly haven’t done any research. You’re just marketing.
Just because they use the term DAO doesn’t mean any of the nonsense you spewed here true.
Dash is not a DAO! Full stop.
The triggering is strong with this one! 😀
Lots of lies and FUD here for sure. First, Dash has no CEO: Dash Core, one of the three main organizations (though not the only ones) in the ecosystem, has a CEO, but I also work for Dash and sure as hell don’t take orders from him. In fact, I published an article a while back that shed light on some negative things about Core, and they weren’t pleased. Needless to say, I still have my job, because I work for the network which funds Core, not Core itself.
All masternodes have to do is de-fund Core and fund a different dev team. That’s it. It’s super easy to fire Core. Meanwhile in Bitcoin, it’s much harder.
[img]https://i.imgur.com/4tzMcBi.jpg[/img]
I’m triggered by idiots who write ignorant BS about cryptocurrencies in order to pump their favorite coin.
You obviously spent a lot of time writing that article, but can’t spend a few minutes to defend your central argument.
You know practically nothing about blockchain governance, yet you wrote a glowing article about dash’s governance system, which is centralized and corporate, unlike most successful cryptocurrencies.
You repeatedly use false statements about the power of users in this governance system. No users of dash can fire the dev team, CEO or anyone else. If you think you can, you have no idea how a company works.
Just because they promise to do what voters say doesn’t mean they have to, or will. THERE IS NO ON CHAIN GOVERNANCE. YOU CAN’T FORCE THE DEVS TO STICK TO THEIR ROADMAP OR ANY OTHER PROMISE. YOU CANNOT VOTE AWAY THE DEV TAX.
You’d rather engage in ad hominem attacks and cherry picking arguments than have an honest intellectual debate, so I’m done here.
I recommend looking into the dunning Krueger effect.
Dude. I can provide evidence of every single thing I said. You absolutely can’t. You’re a petty liar, and I have no time for those.
“No users of dash can fire the dev team, CEO or anyone else. If you think you can, you have no idea how a company works.
Just because they promise to do what voters say doesn’t mean they have to, or will”
You don’t understand how it works. We can vote to not pay the current team if they don’t do what they say they are going to do. Then we vote to hire a new team and pay them.
Listen to the latest quarterly call for all the details about how they are legally structuring it.
Stop drinking that haterade, it’s bad for you.
“In the future all user will be able to vote democratically and get a portion of the Masternode rewards.”
Yeah, in the future we’ll make it more fair, but not really, because we can override any proposals.
It’s already in the roadmap, no proposal needed. If the current team goes back on their word we will fire them and hire a new dev to implement what we want.
Miners in all blockchains, regardless of what they call them(stakers, nodes, whatever validates the blocks), are compensated for running the network. It isn’t some flat tax going to special people, it goes to anyone who uses their equipment and electricity to secure the blockchain against attack, proportionally based on how much they contribute.
No miners, no blocks added to the chain, no transactions can happen.
There are coins that offer better privacy, better decentralization, and have no dev tax.
“compensated for running the network”
Yes that is what the up to 10% goes for. or at least helping the network expand.
“it goes to anyone who uses their equipment and electricity to secure the blockchain against attack, proportionally based on how much they contribute.”
Yes that is very similar to how the budget system works. To protect the network against attacks (Dash Force etc). It is proportionately released depending on how much they contribute.
“There are coins that offer better privacy, better decentralization, and have no dev tax.”
And no governance, very important detail you left out. What are these mysterious other coins you speak of, I would love to invest or rip them apart along with your argument.
“What happens if the core devs die in a plane crash.”
Then we hire a new Dev team. What I like about Dash is if we suspect any of the dev team is bought and paid for by outside bad actors who’s true intent is not in Dash’s best interest (cough, like btc core devs) we can can fire that person and move on.
Even worse is the outsized voting power of master nodes, which gain their master node status by buying 1000 Dash.
I run a masternode and i make less then 40k a year. There are plenty like me who saw the huge potential in Dash and decided to invest early on. I am far from an “elite”. And I’m in it for the long haul because I believe in this project. So your premise that only the rich and elite govern Dash is garbage.
I too have thought about this for a while. Here is a quote from my original Dash Force Reloaded proposal regarding what Dash Force would be….
“This would in essence be the Dash DAO creating an army of defenders to protect itself from attacks, reward its supporters and expand its network.”
It’s alive!
https://youtu.be/gWUokrht-H0
Right now it’s verbal defenders. What happens when there are physical attackers as well? We’ll cross that bridge eventually I suppose.
DashForce MegaForce
https://youtu.be/Q9yPSkQTLlA
LOL you aren’t getting me to wear tights!
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