Dash has announced an election date for Trust Protectors of the Dash DAO Irrevocable Trust, furthering the efficiency of the Dash network’s decentralization.
Dash’s main development arm, Dash Core Group, is controlled by the masternode network, as are all the various projects funded entirely by the treasury, making Dash one of the most decentralized projects in the space. Control is effected through a symbolic masternode vote, or more concretely through revoking or granting funding. In order to formalize and streamline this ownership over the network, the Dash DAO Irrevocable Trust was formed, as outlined in a new post by Dash Core Group’s CEO Ryan Taylor:
“Dash Core Group (“DCG”) announced in July 2017 the formation of The Dash DAO Irrevocable Trust, with the intent of ensuring the operations of Dash Core Group would be effectively controlled and governed by the Dash network. Work setting up the Trust was completed in late December of 2017 and publicly announced in January of 2018. The Dash network is the ultimate beneficiary of the Trust, and the Trust owns 100% of the shares of Dash Core Group Inc.”
By owning assets like Dash Core Group directly, rather than simply controlling a major source of income, the Dash decentralized autonomous organization (DAO) is able to more realistically claim full decentralized control and ownership over the ecosystem. To this end, a group of six Trust Protectors will be elected by the masternode network in March, and will be able to assert this direct control over the Core team, according to Taylor:
“The Trust Protectors are a group of six individuals that ensure that the Trust operates as intended. You can think of them as a board of directors of the trust. They direct the work of the Trustee, who runs the day to day operation of the Trust, and can replace him at any time. The Trust Protectors also supervise DCG’s board of directors and can initiate the removal of any of the directors if directed by the masternodes through a decision proposal.”
This step promises to ensure maximum accountability not only for the Core team as a whole, but for its individual executives as well.
An evolution of Dash’s structure to more decentralization and efficiency
The move to elect Trust Protectors represents an evolution towards a more efficient and decentralized Dash ecosystem. As a first step, according to Taylor, temporarily-serving Dash Core Group board members will be replaced by new Trust Protectors, barring Core members from serving as such in the future:
“Trust Protectors are elected by the masternode network annually. Currently, a subset of DCG’s board of directors act as protectors, since someone needed to be appointed to those positions upon formation of the Trust. Going forward, DCG personnel will be prohibited from running for a Trust Protector position. This will ensure an independent body of Trust Protectors.”
The main feature of this new setup will be to allow the network to have direct control over Dash Core Group and its members, something that was not possible before. Previously, the only recourse for the network’s dissatisfaction with the Core team’s performance was the “nuclear option” of defunding the entire operation. This setup raised the cost of disrupting the status quo significantly, impacting the practicality of exercising direct control:
“With this setup, DCG took the first step to ensure that the Dash network would always have full control over the direction of the project, without resorting to the drastic and disruptive step of defunding DCG and developing an entirely new team to replicate its primary functions…
However, thus far, the network has not had direct power over Dash Core Group Inc., other than through the proposal decisions, because the six “Trust Protector” positions overseeing the Trust were initially populated with DCG team members. To complete the process of establishing the intent of the Trust, we are organizing elections for Trust Protectors, who will have the ability to oversee and replace DCG directors. The Trust Protectors will be a new tool in the hands of the network to shape the future of the project.”
While the primary subject of the trust has initially been Dash Core Group, other entities in the ecosystem may similarly concede ownership to the Irrevocable Trust in the future.
Dash’s historic DAO makes history again through legal codification
The establishment of the Irrevocable Trust represents another instance of Dash continuing to evolve the decentralization of the space. Dash began this trend by creating the first DAO, ensuring a fully decentralized system by creating a self-sustaining ecosystem with open participation, self-funding, and a decision-making mechanism. This setup means that, in theory, every single individual and group involved in Dash could be eliminated and the DAO could be resurrected from scratch so long as the code is still available. The establishment of the Irrevocable Trust codifies this new system into the old global legal system, creating real decentralization in both worlds.