Dash Business Model upgrade: Invest in start-ups

Technologov

Technologov

Active member
Dear Dash Nation.

Just recently we have donated money to two start-ups: To Charlie Shrem Dash card and to TenX VISA card.

I think we should upgrade our Dash business model. Right now, when we vote with Masternodes, we can fund start-ups, but we donate money, we don't invest money. We have zero returns on investments directly. But indirectly ecosystem grows, so we gain indirectly.

I would like to change the "donate" idea into "invest" idea, so that successful start-ups, after they grow big and successful, will pay us dividends, to the Dash network, not to Masternode owners, so we can reinvest the proceeds into more start-ups. This will increase our Dash budget quite a lot faster, rather than via standard coin emission procedure. Additionally it will increase the value of our Dash coins.

The Dash network will become a major shareholder of start-ups and blockchain companies in just a several years. The Dash network can become a large "holding company", in addition to being "money".

If Dash will not do it, some other alt-coin will. And it will gain economic efficiency that Dash missed.

Expected results: The value of our Dash tokens will grow even faster, because businesses will buy Dash tokens on the free markets in order to pay us dividends in Dash.

Technically : One way to achieve this effect : Companies will pay dividend to null-address (putting the coins out of circulation) , but Dash network should re-create those coins in the next Dash budget Superblock, and put it into "budget" section. Additionally the 5.0 DASH spent on budget proposals can also be re-created during the next budget cycle. This means a stable coin supply, 100% circulation. Unspent budget must be rolled-over to the next period.

-Technologov
 
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Excellent! I like your idea very much. I think Evan also has that idea. Because in the Dash Open House, Evan stated that he will invest in many DAOs with most of his own coins.
 
Dao gets paid back by the increased value of dash. This money is not being loaned or invested, but spent. The dao shouldn't act as an investment firm. Or expect those that get funding, to owe any sort of roi directly. The dao invests in dash, not start-ups!
 
It can invest in block-chain related start-ups and companies. With my idea, the value of Dash will increase even faster.
 
If you want to invest in start ups and get paid, should maybe do some research on start-ups, as most of them fail in first two years. Perhaps you should invest your own dash into start-up and make a deal for the royalties. Not trying to be mean, I just don't think MNs will go for that right now. You could maybe propose to start a separate dash investment group.
 
but we already donate to start-ups. To Charlie Shrem and to TenX VISA card. It would be smart to get dividend in return and company shares.
 
Agreed, but I think it lowers the incentive for people to do these things if the dao starts asking for direct roi.
 
Investing means receiving equity in exchange for money, which Dash isn't set up to do. First, the Dash network isn't a legal entity. The Dash Foundation is, but not the network itself. Secondly, when receiving equity for money, you get into a lot of issues with the SEC and other regulators. I definitely see what you're saying--if we are giving out money we should get some sort of profit-share in return. That would be amazing, but I don't think that's feasible at the moment. I could be wrong, though!
 
1. Well, the SEC cannot sue the Dash network.
2. the SEC, AFAIK has limitations on issuing new shares (IPO), not on buying shares. DASH network will be buying shares and selling existing shares.
 
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donating money to start ups is a smart thing? But investing in start-up and getting return on investment (ROI) is a stupid thing? It doesn't make any sense.

Look, if companies will pay us dividends in Dash, in means that they will have to go to the open market and acquire Dash, driving the price up for all users.

And if Dash will not do it, some other alt-coin will. And it will gain efficiency that Dash missed.
 
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Who would the roi go to? The dao currently doesn't exhaust their budget. And doesn't save or roll over the dash, so who would the roi really benefit? Just maybe a conversation for another day, considering the dao hasn't a clue how to spend the dash they are already allocated..
 
Technologov said:
1. Well, the SEC cannot sue the Dash network.
2. the SEC, AFAIK has limitations on issuing new shares (IPO), not on buying shares. DASH network will be buying shares and selling existing shares.
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When have technicalities ever mattered to the US Government? The SEC can sue Evan, Ryan, or anybody else they want to. Whether they'll win or not is a different story, but it's not like the government hasn't ever been known to overreach. A judge not familiar with the technology would most likely call the Dash DAO a legal fiction and simply allow Evan, Ryan, etc. to be held liable.

We're still dealing with a legal system that is way behind technology. Remember Napster? Sean Parker didn't host any of the music files himself, but the courts didn't really care about that.
 
David said:
When have technicalities ever mattered to the US Government? The SEC can sue Evan, Ryan, or anybody else they want to. Whether they'll win or not is a different story, but it's not like the government hasn't ever been known to overreach. A judge not familiar with the technology would most likely call the Dash DAO a legal fiction and simply allow Evan, Ryan, etc. to be held liable.

We're still dealing with a legal system that is way behind technology. Remember Napster? Sean Parker didn't host any of the music files himself, but the courts didn't really care about that.
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Perhaps crypto developers should move, along with their families, to Saint Kitts and Nevis (become new Kittens) or to Switzerland, which are more friendly jurisdictions towards fintech start-ups. It will make it much harder for the U. S to prosrcute them.

Roger Ver, the Bitcoin Jesus moved to Saint Kitty, and renounced his U. S citizenship. Vitalik Buterin of Ethereum established an Ethereum Foundation in Switzerland, not in the U.S for similar reasons. Namely the amount of financial regulation is too excessive in the U. S, and so start-ups must move off-shore.

I support Freedom. Both freedom of innovation and freedom from dumb law and freedom of speech and countries with low taxes,which leads to economic freedom. If a country is to become a bottleneck, it must be swapped into some other country, that is more Freedom-compliant.
 
Technologov said:
Companies will pay dividend to null-address (putting the coins out of circulation) , but Dash network should re-create those coins in the next Dash budget Superblock, and put it into "budget" section.
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Agreed! I was thinking about making a pre-proposal along those lines

Technologov said:
I think roll over unspent Dash to future budgets.
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Megahashman said:
I would agree, but that would inflate the supply unnecessarily, and look bad on the dao.
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No, it wouldn't. Those coins had to be bought before they were burnt.
 
lynx said:
Many proposals wanted to give us ROI already, but there is no technical way to do that.
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forgive me if I'm wrong but I thought the idea of the dao was to be decentralized, not to centralize profits of all dash related project. The idea is that the dao is getting it's roi, and profiting many times over from funding projects that increase the usability, and therefore the value of the currency. Or did I miss something?
 
A profit isn't centralized at all. It does not go to Evan or to me. The profit goes to Fash budhet, and it will be reinvested into future blockchain-related start-ups. But because dividend is payable in Dash, it will have a good side effect : giving Dash coins more value. (rather than just donating Dash)
 
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