How is Dash’s Blockchain Funded & Governed? | DASH School #4

How is Dash’s Blockchain Funded & Governed? | DASH School #4


Hi there, welcome back to Dash School I’m your teacher, Amanda B. Johnson And if you’ll recall, in our last lesson, I left off asking you the question What makes Dash any different from any of the other hundreds, yes Hundreds of blockchain based networks out there? Well, one thing we realized pretty early on in Dash is that; We’re attempting to offer, like so many others are attempting to offer, “Money – as – a – Service” If we’re going to be providing – service (underlined) to our customers, We’ve got to have a way that we can change what it is we do to meet their ever-changing demands in the marketplace. And what’s more, we have to find a way to fund the people who put these code based changes into place. In other words; We have to function as a DAO, a Decentralized, Autonomous, Organization. It’s a fancy word for basically a company that’s run in a whole new kind of way, that doesn’t have a CEO but is rather made up of volunteers from all over the world. So, as I mentioned before, the purpose of our DAO is two fold; One, to have a way that a decentralized network all over the world can somehow make decisions together, so we can better cater to our customers when they want different stuff. And Two, to fund the execution of those decisions. As it’s all man power, man labor hours to be paid. And in Dash, we’ve decided to do this by splitting our block reward. Now don’t run away! You remember what this is! Remember this image of a blockchain a few episodes ago? and how miners who mine each block get rewarded with some newly created coins? like these additional 5 coins here (checks off) and these additional 5 coins here (checks off) And here (checks off) Well, in Dash we decided: “Yo miners, you can’t be having all the block rewards. We have to employ other people” So, whereas in almost all other blockchain based networks, 100% of all newly created coins in each block go to the miners, It’s not so in Dash. In Dash, we devide up our block reward into three different parts. 45% gets paid to our miners, another 45% goes to our Masternodes — Woe! What is that fancy word? – We’ll get to that in the next lesson, And that leaves 10% which acts as our treasury. And it is this treasury bit that allows us to fund everything that’s required on the network in order to be a “money as a service” provider. I’m talking about the hiring of code developers, code autitors, marketers, and of course, translators. And it is this treasury that enables our DAO, our Decentralized Autonomous Organization to be independent. Our network doesn’t solicit grants, we don’t have to hope that deep pocketed individuals make donations to our foundation, and we certainly don’t have to sell out for corporate sponsorships. So, with the funding of our DAO taken care of, (ding) Check, how do we go about making network wide decisions when nobody is in charge? That’s a new and different concept, huh? And that, my friend, is where Dash’s Masternodes come in. I told you I’d get back to them, and I will; Hop on over to the next episode. You’re well on your way to becoming completely conversant in Dash. (Next episode is previewed)

Author:

14 thoughts on “How is Dash’s Blockchain Funded & Governed? | DASH School #4”

Leave a Reply

Your email address will not be published. Required fields are marked *