Dash cryptocurrency: full DAO

The recent rapid take-off of the project “The DAO (DAO)” based on the decentralized platform “Ethereum” (during the launch of which about 150 million USD of investments were raised) caused general enthusiasm regarding the concept of Decentralized Autonomous Organizations. At the same time, for Dash cryptocurrency, the existence in the DAO mode is already “last year’s snow”. This translation article will tell you more about it.

Created in 2014 by Evan Duffield under the name Darkcoin, Dash cryptocurrency quickly grew from a simple transaction platform with a high degree of anonymity to a full-fledged payment network with many services, development-based and blockchain-based decentralized management .

Dash: two years ahead

With all this hype around the DAO, people seem to have forgotten (or simply did not know) that Dash has been operating in a similar way for a couple of years.
Thanks to the decentralized management based on the blockchain (Decentralized Governance by Blockchain, DGB), anyone can suggest changes to improve the Dash. Masternode owners (key Nodes - nodes of the decentralized Dash network) monthly vote on these proposals, the range of which vary from marketing issues and decisions concerning the community to direct changes to the Dash protocol.
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The Dash development finance budget is formed by allocating 10% of the reward for new blocks for this purpose. The allocation of this budget is made by voting operators Masternod.
Unlike DAO, Dash finances its projects with its own internal network money, produced by the miners and monitored at the protocol network level with Masternods.

This method of financing contributes to the strengthening of the entire system, creating a positive feedback with its capitalization - the return of spent funds back to the system in the form of improvements and improvements to both the Dash cryptocurrency and the ecosystem around it.

Against this background, DAO has a system with often conflicting incentives that can lead to situations of massive “sales” of the Ether.

The need to buy DAO for Ether tokens creates a system that turns the right to vote for managing DAO into a tradable commodity, opening the door to a world of speculation and its attendant dangers, such as pamp-i-dump schemes, fraud, etc.
DAO tokens can become an attractive target for speculative traders rather than long-term investors with genuine interest in voting results and in the development of new projects.

At the same time, Dash, with its “internal” voting system with the participation of Masternod owners, stimulates decision-making on financing projects without shocks.

Decentralized management

Since the beginning of the deployment of its blockchain-based decentralized management (DGB) in August 2015, the Dash project continues to evolve with the Misternod vote, and is an example of an effective (self-stimulated) blockchain system.
Fast and reliable decision-making process helps to avoid any internal strife and obstacles to the common good - the continuous improvement of the work of Dash, in which every Masternode owner is directly interested.

Even with a cursory review of the documentation, it is clear that the upcoming update of Dash to version 12.1 will make the DGB system even more efficient by adding elected project managers to the System architecture.

They will specialize in certain areas such as marketing, legal and technical aspects, with project managers hiring “employees” to complete projects approved by voting.

In addition, project managers will have to report to the community, and action may be taken against them if their actions conflict with the interests of the network, or if there is an inappropriate use of the allocated budget.

In addition, in the new system, Masternode owners will not be so actively involved in projects (besides the voting itself), which will allow them to more efficiently use their resources to work in other areas of the Dash project improvement.

“We decided to create a structure that would allow decentralized teams to autonomously manage our investments throughout the entire life cycle of each project,” says Duffield.

“We expect other projects to accept the decentralized model we offer for management structures,” continues Duffield. "We consider this one of the most important components of successful project implementation."

In March, specific priority issues were published that put the emphasis on increasing the availability of Dash for ordinary users.

Duffield said that with the release of version 12.1, the Dash development team will devote most of its attention to creating “gateways for working with fiat currency”, which he described as “more liquid and high-quality Fiat-Dash exchange services.”

Since this announcement, Dash has been integrated with Deginner, Coinapult and Crypto Capital to make it easier for users to exchange Fiat Dash. Duffield believes that with these “gateways of direct access to fiat currency”, Dash will be able to enter the next phase of growth.

The emergence of such projects for the “real world”, initiated with the support of the Masternody management, proves the viability of Dash as a decentralized autonomous organization .

With a market capitalization of $ 52.4 million, Dash currently ranks fifth in the global cryptocurrency rating.