Pre-Proposal: Alt36 + Dash Payment Platform

Nick said:
Reference information:
-Only two shareholders above 20% which are the operators. No information on the NASDAQ.​
Asking Amount: 6800 DASH ($496,000 USD) across 4 goal based payments to be given by a project manager of our choosing.

@ThirtySix

  1. To whom are we addressing now and will you continue to represent ThirtySix in ongoing communications inside this thread?
  2. Why submit this proposal now?
  3. Why Dash - what factors made you decide against other virtual currencies such as USDTether, Ether, and Ethereum's stable coin dai? What are your thoughts on the recent announcement of http://tokencard.io/ and how that might be an alternative solution for your companies needs?
  4. You state: "We will be able to process both digital currency and regular credit card/debit fiat payments." and "...solving the problem...the ability to accept digital payments at the traditional point-of-sale (POS) locations."
a.) Will major retailers such as Walmart be able to use your PoS software alongside their existing software to accept dash payments? And if so, what kind of fees can they expect for accepting dash payments instore or online? What will swipe fees and online transaction fees be for traditional cards using the service?
b.) What kind of monthly or yearly fees should a merchant expect using your service or PoS provider(s)?
c.) Will the PoS software be proprietary? If not, what offer might Dash make to have it open source?
d.) Will your platform or any of its related partners offer an option to exchange dash to fiat? If so, are you able to provide us details on who such exchange(s) might be?
e.) Assuming this system is up and running, could you provide details of what happens on the frontend and backend if someone makes a payment in dash - what app or hardware wallet might they use, once the buyer sends the dash where is it held, etc.?​
Click to expand...

1.To whom are we addressing now and will you continue to represent ThirtySix in ongoing communications inside this thread?
The core team of Alt Thirty Six is replying to these posts. Yes, we will continue to represent ThirtySix in ongoing communication within this thread.

2.Why submit this proposal now?
We feel we have done enough research, gathered appropriate feedback, and interest, from the initial target industry to start this project and capture on the high demand for a solution such as Product36. We believe it’s important to have partnerships and strategy lined up prior to submitting a proposal, now that those stages are complete we are ready to submit this proposal.

3.Why Dash - what factors made you decide against other virtual currencies such as USDTether, Ether, and Ethereum's stable coin dai?
We have chosen Dash for several reasons. We have worked closely with the Dash core team and appreciate the dedication to strategic growth strategies. Dash has solved the traditional problems that exist with BitCoin such as the InstantSend function which enables traditional POS transactions at retail locations.

4.What are your thoughts on the recent announcement of http://tokencard.io/ and how that might be an alternative solution for your companies needs?
TokenCard looks like a great solution and we would be interested in exploring how we can incorporate their offering. We are interested in building an eco-system of value added providers.

5.You state: "We will be able to process both digital currency and regular credit card/debit fiat payments." and "...solving the problem...the ability to accept digital payments at the traditional point-of-sale (POS) locations."


a.) Will major retailers such as Walmart be able to use your PoS software alongside their existing software to accept dash payments? And if so, what kind of fees can they expect for accepting dash payments in store or online? What will swipe fees and online transaction fees be for traditional cards using the service?

Yes. Our plans for integrating include partnering with traditional POS systems. In later phases we will incorporate an IoT device (that is already manufactured), we can plug into the existing POS systems so merchants such as Walmart will not have to replace or change their hardware/technology. The fiat card processing will be competitively priced, but the one piece that can’t be eliminated are the interchange and card brand fees. Our goal is to incentivize the acceptance of Dash and make sure these fees are far less than the interchange and card brand fees that can’t be eliminated in traditional fiat card processing.

b.) What kind of monthly or yearly fees should a merchant expect using your service or PoS provider(s)?

The fees will vary from our initial industry target to the fortune1000 retailers. Initially we will be charging a percentage on the total volume processed that includes a package of services listed in the pre-proposal document.

c.) Will the PoS software be proprietary? If not, what offer might Dash make to have it open source?

The POS systems we have partnered with in the cannabis industry are owned and operated by their company, they manage the entire grow process to sale of the product with fulfillment and inventory services. For MVP we are partnering with them, facilitating API integrations and integrating Dash as the primary payment method to take the industry cashless. There will be several opportunities for Dash.


d.) Will your platform or any of its related partners offer an option to exchange dash to fiat? If so, are you able to provide us details on who such exchange(s) might be?

Yes, we will be offering this option. We will be offering a solution that provides convenience and use-cases of the everyday user and business owner. We will be utilizing BlockCypher wallet APIs and BlockCypher-Dash API to facilitate transactions. Initially we will be conneting to an exchange and broker that allow for the purchase and conversion of Dash. We are evaluating a few exchanges and we will connect with them through available APIs.

e.) Assuming this system is up and running, could you provide details of what happens on the frontend and backend if someone makes a payment in dash - what app or hardware wallet might they use, once the buyer sends the dash where is it held, etc.?

Alt Thirty Six will not hold dash, we will facilitate the transaction to the appropriate end point. We will log all reporting and initiate actions through API calls. An end user will initiate a payment from the a wallet, the transaction will then ping the POS system which will send to Product36. Depending on the transaction Product36 will send through the transaction flow to reach the Dash network. In order for a customer or user of Product36 to buy, send, cash-out Dash, they could initiate this action within the Product36 technology.
 
Last edited:
TroyDASH said:
In a previous proposal that was funded by the Dash network, Living Room of Satoshi, when asked whether the Dash exclusivity would be permanent (or at least for a certain minimum amount of time), responded with "I don't have any plans to re-introduce those [altcoins]" Source: https://www.dash.org/forum/threads/...ansfers-to-45-000-billers-in-australia.10531/

6 months later they added Ethereum and Litecoin.
Source: https://www.reddit.com/r/dashpay/comments/5zw5r1/livingroom_of_satoshi_breaking_the_terms_of_a/


Having no present "intention" to incorporate other currencies isn't good enough. I would like to see a legally enforceable commitment.
Click to expand...
Thank you for your feedback. We would be willing to provide a guaranteed period of 24-36 months after launch. We would be more than happy to work with the Dash Core Network on a signed agreement.
 
ThirtySix said:
Thank you for your feedback. We would be willing to provide a guaranteed period of 24-36 months after launch. We would be more than happy to work with the Dash Core Network on a signed agreement.
Click to expand...

Thank you, that would help if you could do that.
I don't think it would be fair to your company to permanently box yourselves out of the entire rest of the crypto space, but in the world of open source projects, being the first to market is very important. Having a 24-36 months commitment would reassure the Dash network that funding this proposal will give us a first mover advantage (as opposed to just paying for the framework for other currencies to immediately take advantage of), and also allow your business to expand in the future if the situation warrants it
 
Last edited:
ThirtySix said:
onsite Dash ATM
Click to expand...

Can you comment more on this... ATM owners, fees, coin support, etc, as this could create Dash business acceptance pockets or Dash test markets around the dispensaries where you launch...

ThirtySix said:
We will roll the solution out to a state where MJ is fully legal on a state level vs. just for medical use.
Click to expand...

Also, more on this "first state", as it will affect the overall marketing plans and future Dash marketing proposals... We will want to make a concerted effort in the geographic launch area.... A place like Colorado could spread Dash usage through tourism, as discussed in other current proposals... Washington has more raw population numbers @7,288,000 people and boarders Oregon... California is where the gold is, but it's not rec. legal yet...

Finally, if approved how would you describe the type and frequency of communication with the Dash Core Team and MNOs (initially, build, deployment)?

Thanks!
 
I have received a number of inquiries regarding this proposal and asking for official statements on our views as a core team. There are a few specific requests that I can answer:
- This proposal is an independent proposal. We have agreed to act in an escrow capacity to protect the interest of the Dash network.
- I have first-hand knowledge of the progress made to date, including sitting in on problem-solving sessions, demos of components comprising the final package of services, met with alt36 advisory board members, and provided advice and counsel to the alt36 team to help optimize the solution
- I can attest that the CEO, Ken Ramirez, has built an extensive network in both the cannabis and payments industry, and is a tireless advocate for Dash in all his interactions - and has transformed the focus of his business specifically to pursue this opportunity
- The product's various components and partnerships are more solidified than NDAs and requests from the many entities involved in the final solution would permit to be revealed. Many are excited to participate, but were unwilling to attach their brands publicly at this stage of development. If certain elements seem vague, it is because alt36 lacks the necessary permissions to reveal additional detail, or because alt36 fears tipping off competitors to the exact partners that will enable such a system to be built.
- There are some minor dependencies on yet-unannounced integrations that are currently underway elsewhere in Dash's ecosystem, but these are low-risk and low-impact if they fail to complete - even with our current ecosystem of fiat gateway options, ATMs, and services, it is possible to build the proposed solution.

As requested, I will connect with the rest of the core team to determine whether we should make an official statement on the merits of the proposal. I can see rationale for allowing the network to reach its own conclusions independently, and I can also appreciate the need for in-depth assessment. Any official stance from the Core Team could have a significant impact on the outcome of the vote, so if an official assessment is to be provided, we have an enormous responsibility to the network to make sure we perform an outstanding an unbiased job in creating it.
 
ThirtySix said:
Full costs are expected to be 6800 DASH ($496,000 USD) and we are asking for 4 goal-based payments that will be adjusted according to the Dash/US Dollar exchange rate at the time. We will submit 2 proposals: the 1st for the 50% of the total funding, distributed over the next 2 months and the 2nd for the remaining 50%, distributed over next 2 months following.
Click to expand...

(6800/4)/6652 = 25.6% of the monthly budget for 4 months (assuming constant Dash price).

Does the Core Team plan to scale back their typical (close to 80%) budget request? If so, by how much? Does that answer depend on whether Core officially endorces this project?

(apologies if this has already been addressed).
 
Last edited:
c3works said:
You're making my point! Take note @mastermined
Click to expand...

I don’t know about you but I have been extremely impressed with these guys responsiveness and thorough answers. If my support for this proposal was 85-90% before it is now nearing 100%, but I will reserve that until deliverables are met.

Hopefully tao can do an in-depth interview with them soon where i’m sure other tough question and concerns will arise. If they continue to answer satisfactorily as they have been they will continue to have my support. How about you?
 
My biggest question is around the $20k and $107 K in Dev/Production Server, Software, and Network Costs in your contribution. I cannot wrap my head around how on earth to spend that much on server hosting alone, unless the software is most of the expense. Now days you could scale up the resources to meet demand. This 127k should be spent on other things. I have access to some multi data center cloud hardware or rack space at very very good pricing that would allow you to grow into it.
 
mastermined said:
I don’t know about you but I have been extremely impressed with these guys responsiveness and thorough answers. If my support for this proposal was 85-90% before it is now nearing 100%, but I will reserve that until deliverables are met.

Hopefully tao can do an in-depth interview with them soon where i’m sure other tough question and concerns will arise. If they continue to answer satisfactorily as they have been they will continue to have my support. How about you?
Click to expand...
I totally accept their knowledge, business acumen, and growth potential within the industry. This proposal should almost certainly be a good situation for them (and that's good - you want a committed partner). My only concern is the quality of the deal structure and terms regarding Dash's interests (including overall funds from both sides).

An interview with ThirtySix is good, as we can learn a lot first-hand from them about their execution plan, but they certainly aren't going to point out any weaknesses in the deal from Dash's perspective so they can be tightened up, right?

@babygiraffe commented that he would discuss this with the core team for possible review or statement from Dash's side of the table. If decentralized governance is going to be effective and not get taken advantage of in large-scale deals like this, such financial vetting matters.

Subject to the interview and core team review/remarks about deal structure (remember, MNO's necessarily can't go behind any NDA curtains), however, I would support it.
 
I had an opportunity to speak with Ken from alt36 at some length at the Dash open house.

One thing that struck me was his enthusiasm for the project, confidence in his team's ability, and commitment to the Dash network.

The marijuana angle into the payments market is a beautiful Trojan horse.

I am very excited about this proposal and will be voting yes.
 
halso said:
I had an opportunity to speak with Ken from alt36 at some length at the Dash open house.

One thing that struck me was his enthusiasm for the project, confidence in his team's ability, and commitment to the Dash network.

The marijuana angle into the payments market is a beautiful Trojan horse.

I am very excited about this proposal and will be voting yes.
Click to expand...
I was there, myself! Wish we had overlapped.
 
In regards to this offer we should explore alternative partners for such a venture, namely Bitpay, who is already deeply entrenched in the virtual currency payment space. They already have software and integrations for bitcoin inplace, which is a core part of dash, as well as having partnerships with Microsoft and Newegg.

I'd like to hear our current PoS provider Blockpay's opinion on this matter too.
 
Last edited:
I too look forward to the content of an interview with toa... will it be recorded?
 
ampp said:
My biggest question is around the $20k and $107 K in Dev/Production Server, Software, and Network Costs in your contribution. I cannot wrap my head around how on earth to spend that much on server hosting alone, unless the software is most of the expense. Now days you could scale up the resources to meet demand. This 127k should be spent on other things. I have access to some multi data center cloud hardware or rack space at very very good pricing that would allow you to grow into it.
Click to expand...

The development cost portion will be to support ongoing development and testing new additions as we grow. We intend to roll out multiple phases and will need servers to test without disrupting the production server. We will need database, API, and web servers along with a load balancer to support the development portion.

The product server cost is much larger than development due to a few aspects. The fiat processing side requires additional requirements and features in order to accept credit and debit cards which will expand the system. Due to our partnerships, we also have a very large number of expected Dash transactions and in later phases, fiat transactions. Just one of the POS systems we are partnering with in the cannabis industry did $1.5billion in sales last year with an average ticket of $100, they intend to grow to $3billion this year. This one cannabis partner would generate 30mm transactions through Product36 at their current capacity, we also need to support the traffic from other cannabis POS partners along with clients within the Fortune500. The $107,000 will help support the infrastructure, ongoing management and speed of the system, and ensure we can support the transaction volume.
 
How about if we do this the other way around?
Instead of us putting up half a million and hoping you keep your word, you borrow half a million on a 36 month schedule and put in a 36 month proposal for us to make the payments on the loan. As long as you are still in business and still supporting Dash as the payment rail, we'll make the payments.
 
You must log in or register to reply here.
Back
Top