The cryptocurrency Dash is an open-source software project, initially called Xcoin when it appeared on the market in 2014, then it was renamed Darkcoin in 2015, finally ending with the name it is known today: Dash. It resembles Bitcoin in “non-dependence” on any centralized entity such as central banks or any other financial entity.
Its base is the P2P system, that is, “person to person,” which has two levels: one side is made up of the miners, who are the ones who secure the network and keep the records of the transactions on the Blockchain updated, on the other hand, there are the “master nodes” which are those that offer almost instant transactions (Instand Send) and transactions with enhanced privacy (Private Send). Likewise, they allow the administration of a decentralized autonomous governance system, making it possible to finance the treasury for initiatives or projects of development, infrastructure, and publicity through community voting.
What is Dash’s treasury?
Dash’s treasury is the decentralized autonomous organization (DAO) system powered through Dash’s decentralized governance and financing system, making it easy to reach consensus on proposals for change in the network or the budget allocation or development promotion initiatives for Dash. In this system, each operator of Masternode represents one vote. If proposals meet the criteria and exceed the available funds, the recommendations are funded with the highest vote.
Dash treasury differentiator
What makes Dash different from other cryptocurrencies is its self-sustainability. As you can see, the DAO governance system came to change paradigms and in this way turned Dash into a self-sustaining cryptocurrency; for example, in most cryptocurrencies, they receive 100% of the block’s reward, that is, compensation for providing its services to solve each block of the Blockchain, however, in the case of Dash this is not the case, since, with its vision of being self-sustainable and continuing with its growth and improvement, it creates a way to give back the time of those people who contribute to the development of the Dash application worldwide, in Dash the block reward goes to three different purposes with equal importance, 45% for miners, 45% for Masternodes, and 10% goes to the treasury, whose function is to finance the projects that the DAO considers pertinent and whose objective is continuous improvement, community growth and the adoption of Dash around the world.
These projects are chosen through a monthly vote of the Masternodes. Proposals are eligible to be funded according to the following formula: (YES votes – NO votes)> the total number of Masternodes * 0.1. It is determined how the treasury budget will be invested. The important thing is that the same protocol will always handle this vote.
Current treasury projects
In January this year, the central Dash published a proposal in which it was sought to add new elements that help to be more efficient with the funds of the projects that the community proposes to the DAO. This proposal is called Dashboost, which seeks to finance many micro requests rich in innovation and creativity. The proposal can be assumed with only one FII or commission of a Dash, which is less than a claim in the traditional treasury where the FII is 5 Dash.
What do you think about this topic? Would you be interested in proposing a project for Dash’s treasury?
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