Dash has certainly realized significant growth regarding utilization, partnerships and price point over the course of last year. This year, the Dash project continues to take actions, one of them being its recent partnership with Arizona State University for the funding of research on the blockchain and more.
Early investors in Dash are certainly pleased with the increased value of the currency, but some still have had concerns in regards to the governance aspect of the currency. They want to know if Dash really is, in every sense of the word, a decentralized coin.
This is certainly an interesting question because it shows the importance of decentralization and how Dash is addressing this concern.
The Voting Mechanism in Dash
According to Dash, their voting mechanism works like this.
“Decentralized governance: the consensus of blocks Dash is the first decentralized autonomous organization operating with a Sybil-tested decentralized governance and funding system.
Decentralized governance by Blockchain (DGBB), referred to simply as the “treasury system”, is a means of reaching consensus on the proposed changes to the network and the development of Dash ecosystem finance. Ten percent of the block awards go to this “treasury” to pay for projects that benefit Dash. Treasury funding has been used to hire additional developers and other employees to fund conference attendance and to fund integrations with major exchanges and API providers.”
It’s an interesting system because it serves a decentralized autonomous organization and has established a way for further research and funding of improvements to their blockchain through the sort of automatic tax of block awards which are going to the treasury to the further the development of the DASH ecosystem.
The treasury system is a key aspect of the decentralization of DASH because it serves as a way of reaching consensus in regards to the development of DASH.
It seems that in the treasury model, people who are part of DASH can collectively or individually send proposals to the network while attaching the cost of the project as well. Then those who have masternodes will be able to vote on which projects are chosen and which ones are discarded. The projects that passed voting can be seen here. Remember, in this system, only those that are in possession of masternodes are the only ones that can vote. Having a masternode is not easy, it requires the individual to have possession of at least a thousand dash coins to stake.
Network calls the shots
Furthermore, what’s even more interesting is that the core team of developers who work on the network are compensated via funds from the treasury.
Meaning that the core team may not always be able to hold their ground. If the masternode network doesn’t feel like the current core team of developers are not up to par, and another team has a better proposal, they’re booted out. The key developers are funded by the community regularly from month to month.
They are seeking to decentralize their governance even more by the formation of a trust that has complete ownership of the shares of Dash Core Inc., the beneficiaries of this trust are the masternode participants.
This means that in all forms, legal and otherwise, there is a distribution of assets to the network.
Not all is decentralized paradise in DASH Land
Transparency is not highly present in the network, masternode runners don’t have to reveal themselves. Core team individuals can operate several masternodes making it potentially further centralized.
What are your thoughts on DASH and its decentralization or lack thereof?