DCG Bonds

[xkcd]

Currently, DCG is run like a government and like most governments they are unable to match their spending with their income. To make up for this shortfall, governments will issue bonds (debt) where promise is made to pay back the holder the face value of the note and some interest. DCG has maybe 3-4 months left before they run out of money, similar to a government, to get around this unpleasant reality, they could issue the DCG bond, the structure would be something like this. Each bond is valued at 100 Dash, it has a maturity in 6 months or 12 months and pays an interest rate in Dash of something like 10% to 20% pa. They can issue as much as they like and the community buys this paper and since DCG can always extract coins out of the treasury, we know they are good for this debt. When the bull market returns, DCG will simply continue to bleed out of the DAO and pay back these loans, while also building up a reserve in fiat for themselves for the next bear market.

Good idea or not? What would you tweak? Would you loan DCG a 100 of your Dash under these terms?

 

[qwizzie]

Would this (the issueing of debt / bonds by DCG) drive Dash closer to being viewed as a security ? What if DCG does issue debt / bonds, but at some point does not get funded anymore through its DCG budget proposals ? We would have a DCG that can not fulfill its financial obligations, and we end up with pretty much worthless bonds.

I rather have a discussion about possibly downsizing the number of Platform developers after Dash Platform gets released to Mainnet, to cut operating costs for DCG.

I suspect the Dash Core team currently has the right number of developers, so i don't see a need to cut there.
But the Dash Platform team after Dash Platform gets released to Dash Mainnet should be re-evaluated with regards to necessary number of personal, in my view.

Anyone has the current number of FTE's (full time employees) for the Dash Core team, the Dash Platform team and other teams operating within DCG ?

 

[xkcd]

What if DCG does issue debt / bonds, but at some point does not get funded anymore through its DCG budget proposals ? We would have a DCG that can not fulfill its financial obligations, and we end up with pretty much worthless bonds.

I agree, there is a risk that DCG would not be able to get further funding at some point in time, that is why I would demand at least 10% interest on the bond, but I think this would be a highly unliklely scenario, DCG has to date never been defunded.

I rather have a discussion about possibly downsizing the number of Platform developers after Dash Platform gets released to Mainnet, to cut operating costs for DCG.

I would prefer this option too, but QE is not having any part of it. What I find amazing is that Amazon, Meta and all of Silicon Vallet is laying off employees and Kraken, Bybit, Genesis etc in the crypto space are also laying off employees, but somehow in DCG there have been no adjustments made in this bear cycle at all, are we just that good? Is the Teflon that good? One would expect given the poor performance of the coin down from $475 in 2021 to $45 presently, some adjustments would need to be made.

 

[kot]

Interesting concept. I need to think about that more.

Just a side note about that fragment:

What I find amazing is that Amazon, Meta and all of Silicon Vallet is laying off employees and Kraken, Bybit, Genesis etc in the crypto space are also laying off employees, but somehow in DCG there have been no adjustments made in this bear cycle at all, are we just that good?

This isn't true. Many people were laid off from DCG during the latest bear market.

But, in my opinion, it doesn’t mean changes aren’t necessary. The current team is not extremely reliable, especially if comes to the fulfilling promises about the time of releases, has performance issues and other problems. Definitely changes are needed. I have already mentioned that here: https://www.dash.org/forum/threads/i-think-dash-needs-some-changes.53198/