As we shared on the last quarterly call, Dash Core Group was faced with some tough decisions to maintain financial stability in light of the current market. Although much of the impact from price reduction has already been absorbed by a combination of compensation fund buffers, voluntary pay cuts & eliminations, elimination of smaller stipends, and elimination of employment benefits, we have unfortunately reached the limits of what these options can accommodate. Earlier this month, we made the decision to lay off four of our DCG colleagues to reduce costs and align them with the available budget. Our monthly payments for January invoices yielded an average of ~$67 / Dash, which is the lowest price we’ve experienced since “crypto winter” began. As a result, these further steps were necessary to maintain the company’s financial health without increasing our share of the overall Dash budget; we remain committed to keeping our proposal requests below 60% of the available budget.
This was not a decision we took lightly and we’ve been actively finding ways to reduce the budget over the past several months. A large number of contributors have already stepped forward to voluntarily reduce or eliminate their compensation, which has helped us a great deal coping with the reduced budget size. A hiring freeze has been in place for over 6 months, which has also allowed for some natural turnover to have an effect on our expenses as well. Unfortunately, at the current price, we reached the limits that these measures could address. We want to stress that no layoffs were related to performance, but based on what we felt was the best decision for both DCG financial health and the network in light of the current available budget.
Our primary focus remains on the development of the network, and more specifically, the roll out of Evolution. As a result, we decided to focus cost reductions on several business functions so that we can ensure that focus remains without disruption. The business functions impacted are:
We are actively making changes within the organization to ensure business continuity despite the reduction in resources. More specifically, the operational changes we will be making include the following:
Human Resources
Many HR related duties will be shifted to individual managers, finance, operations, or myself. Glenn will be acting as a primary contact point for HR topics going forward.
Strategy
Strategy projects will transition to each of the functions with whom the strategy team had been supporting. Operations will assume maintenance responsibilities for the metrics and reporting tools that the strategy team recently created. Going forward, Liz will begin reporting to me directly and will continue to lead product management and related projects.
Business Development
I will be taking a larger role in business development going forward to assist with the smaller team size and capacity, and we will focus more attention and prioritize on the components of our growth strategy that are gaining traction most quickly.
DCG is doing its best to minimize the impact to our people and operations, and though the options facing us were less than ideal, we will continue to balance the competing needs of financial stability, continuity for our operations and people, and needs of the network we serve. With these reductions, we are hopeful that Dash Core Group can weather the current environment. We wish nothing but success for those impacted and I want to thank them personally for the lasting contributions and commitment they demonstrated to both DCG and the network.
This was not a decision we took lightly and we’ve been actively finding ways to reduce the budget over the past several months. A large number of contributors have already stepped forward to voluntarily reduce or eliminate their compensation, which has helped us a great deal coping with the reduced budget size. A hiring freeze has been in place for over 6 months, which has also allowed for some natural turnover to have an effect on our expenses as well. Unfortunately, at the current price, we reached the limits that these measures could address. We want to stress that no layoffs were related to performance, but based on what we felt was the best decision for both DCG financial health and the network in light of the current available budget.
Our primary focus remains on the development of the network, and more specifically, the roll out of Evolution. As a result, we decided to focus cost reductions on several business functions so that we can ensure that focus remains without disruption. The business functions impacted are:
- Human Resources, which will be eliminated
- Strategy, which will be reduced by 2 people
- Business Development, which will be reduced by one person
We are actively making changes within the organization to ensure business continuity despite the reduction in resources. More specifically, the operational changes we will be making include the following:
Human Resources
Many HR related duties will be shifted to individual managers, finance, operations, or myself. Glenn will be acting as a primary contact point for HR topics going forward.
Strategy
Strategy projects will transition to each of the functions with whom the strategy team had been supporting. Operations will assume maintenance responsibilities for the metrics and reporting tools that the strategy team recently created. Going forward, Liz will begin reporting to me directly and will continue to lead product management and related projects.
Business Development
I will be taking a larger role in business development going forward to assist with the smaller team size and capacity, and we will focus more attention and prioritize on the components of our growth strategy that are gaining traction most quickly.
DCG is doing its best to minimize the impact to our people and operations, and though the options facing us were less than ideal, we will continue to balance the competing needs of financial stability, continuity for our operations and people, and needs of the network we serve. With these reductions, we are hopeful that Dash Core Group can weather the current environment. We wish nothing but success for those impacted and I want to thank them personally for the lasting contributions and commitment they demonstrated to both DCG and the network.
