Mega Dash Raffle, a Dash Boost funded project, has officially launched with their first raffle to create an alternative funding source that incentivizes donations to projects on the Dash network.
As detailed in the video, their Dash Forum post, and a previous article, Mega Dash Raffle (MDR) will be pursuing three types of raffles.
- Mini Dash Raffle
- Ideal to raise funds for Dash Boost
- Ticket sales last 7 days
- Each ticket is 0.01 Dash
- Dash Raffle
- Ideal to raise funds for Dash Treasury
- Ticket sales last 14 days
- Each ticket is 0.05 Dash
- Mega Dash Raffle
- Ideal to raise funds for an entire project
- Ticket sales last 30 days
- Each ticket is 0.1 Dash
A winner will be randomly selected at the end of each ticket sales period, of which 50% goes to the beneficiary of the project, 40% goes to the raffle winner, and 10% goes to MDR for operational costs. To maintain transparency, the MDR team has publicly released the code for their random selection process. Anyone can register a raffle for a creation/spam-prevention fee of 0.1 Dash, which will be reimbursed if ticket sales exceed 20 tickets. The fee will be forfeited if ticket sales do not exceed 20 tickets and the raffle will proceed as normal.
The Mega Dash Raffle team also made a video detailing how to create a raffle on their platform.
The first raffle on the platform is for “AgroCognitive Dash Powered – Pre-release launch”, which is a Mega Dash Raffle so it sells tickets for 0.1 Dash. At the time of writing, it has sold 5 tickets with 29 days remaining, raising a total of 0.45 Dash after the 10% MDR fee, which means if the raffle ended right now then the raffle winner will get 0.2 Dash and the raffle creators will get 0.25 Dash.
Incentivizing alternative fundraising
Mega Dash Raffle offers individuals in the Dash community an alternative source of funding, which is becoming increasingly important as the Dash DAO Treasury budget becomes tighter in fiat terms due to the bear market. The differentiating factor for Mega Dash Raffle is that it incentivizes individual Dash users to donate and participate in the system since it offers a potential reward to winners and encourages them to buy more tickets, which gives more money to the raffle and proposal owners.
However, since it is a raffle/lottery, it is considered gambling in many jurisdictions, which the MDR team was well aware of and made sure to address the legal issues. @jesccs of Mega Dash Raffle discussed how they structured their legal documents well to keep Non-Profit Organization Representative (NPOR) complaint, as well as Mega Dash Raffle and participants, which they heavily discussed in their Dash Forum post.
“It was very hard, we counseled with a lawyer support, looking for current online raffle’s web sites. Raffles are considered gambling in a lot of countries, so we had to read and review a lot of acts / laws in order to get enough protection to this project, dev team, NOPR and bakers (ticket buyers)”
Overall, they are looking forward to introducing Mega Dash Raffle to the Dash community since they worked very hard with surveys, developers, lawyers, and Dash Core developers to create Mega Dash Raffle to help the Dash community.
Dash finds ways to help the community build
One of the main advantages of Dash is its DAO Treasury, which enables Dash to fund projects internally rather than having to seek funding from third party sources that may eventually develop conflicts of interests. However, as the exchange price has been dropping, that has put more pressure on the DAO Treasury and forced Dash community members to look elsewhere for funds. One of the first was Dash Boost, a smaller treasury system, to help fund smaller projects that could not compete at the DAO Treasury level. Soon, DashDonates and DashRoots emerged to provide a crowdfunding platform for projects. Now, Mega Dash Raffle takes it a step further by incentivizing donations through a raffle/lottery system.
Dash Ventures plans to offer the masternode network equity and/or some form of returns in exchange for investing in specific projects. This makes Dash Ventures different from current fundraising methods that are basically a grant system where the main return to the network is increasing Dash services and robustness rather than tangible monetary returns. Dash Ventures is still in the construction phase, but once it comes online it also will provide the Dash community another alternative source of funding to expand the Dash community and enhance Dash services.
*Update: The videos have been updated to correct a wrong url featured in the videos of a previous version of this article.