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Pre-Proposal: CannTrade going National (and beyond) w/ Dash

Would you support this proposal? Please leave a question or comment if you can!

  • Yes

    Votes: 3 75.0%
  • No

    Votes: 1 25.0%

  • Total voters

Adam Holub

New member
Hi guys! This is a big one, but we're going after an enormous opportunity with a high chance of success. Note--there are some references to videos in this document, but they are not currently included. Those will be embedded in the official proposal to be posted later this month. As always, thank you for viewing, and we are looking forward to hearing from you!

Here's a link to view the pre-proposal all in one place, and with better formatting:


Proposal: CannTrade National Launch
Prepared by: Adam Holub, President
July 2018

Executive Summary
Key Points
Our Last Proposal (“Dash + Alt Thirty Six + CannTrade”)
Initial Press Release (June 13)
MSN Money (June 16)
Video Demo: Using Dash on CannTrade
This Proposal: Introducing Dash to the Nation
Market and Opportunity
Our Strategy -- Dash as a Driver and a Beneficiary
The Ask and Use of Funds
Final Word and Thank You!
Come meet us?
What is CannTrade?
Our Board of Advisors
CannTrade Co-founders:

Executive Summary

CannTrade, the first (and only) B2B Platform to support digital payments in the cannabis industry, will launch an aggressive 12 month strategy that heavily prioritizes capturing national market share. Dash is the exclusive digital currency supported by CannTrade.

CannTrade is seeking 3 monthly payments of ~1026 Dash ($251,000 USD per month) to subsidize the costs required to support expansion into every US cannabis market (and some international markets).

The plan includes a dynamic approach to marketing, educating, and inundating our target market to ensure CannTrade’s dominance, and to establish Dash as the signature digital currency for the multi-billion dollar Cannabis & Hemp spaces within 12 months.

Key Points
  • With the approval of this proposal, CannTrade will be able to offer our marketplace and sales tool functionality to all US Cannabis businesses for free. This will remove barrier to entry for businesses currently being walloped by taxation and licensing fees. Becoming the only free cannabis platform will drive CannTrade’s growth and exponentially increase exposure, user numbers, and adoption of Dash.
  • With Dash’s assistance, CannTrade will be able to greatly expedite national (and strategic international) expansion, which requires significant development, legal, support, and marketing dollars in each state/country. We have the opportunity to corner the market in several states before our competitors have a chance to step foot there. Nascent markets with high potential, such as Massachusetts, Michigan, Ohio, and many others, are ripe for the taking--and use of Dash will be baked in as a foundational industry practice in early-stage places where standard business operations are beginning to take shape.
  • CannTrade has gathered and curated expremely valuable license, contact, and business info for every licensed cannabis and hemp business in the US (as well as for some countries outside the US), and we continue to update that database, which we will leverage for our own promotional and sales purposes and as a key value prop to grow our client base and Dash usership.
  • The Dash solution will highlight CannTrade’s multi-faceted marketing campaign, designed to saturate the industry, drown out any noise of comparable solutions as they surface, and even generate buzz outside of cannabis.
Our Last Proposal (“Dash + Alt Thirty Six + CannTrade”)

Our first project with Dash (CannTrade’s integration with Alt Thirty Six) is well underway. In fact, at the time of this writing, the bulk of the development for the integration is already complete. We are entering the QA & testing phase, and the solution will be live and available to our clients in no time. We’re excited to have locked down some of the industry’s biggest names to pilot the solution, and to take part in the first ever live cashless B2B cannabis transactions.

CannTrade is the first integration for Alt Thirty Six, and we are happy to be the only B2B platform to offer a true digital payment solution anywhere in the Cannabis Industry. Because the solution is on the cusp of going live, we’ve engaged PR and initiated the campaigns to market and promote using Dash on CannTrade.

You can find the initial press release, statistics on reach and impressions, and other media pick-ups below. Also, be sure to check out the video demo showing the experience of shopping and placing an order on CannTrade using Dash (video below the media links--will be embedded and viewable on the official proposal later this month)!

Initial Press Release (June 13)


Notable Stats: (at 5 days - on 6/18/18)
  • Pick-Ups: 134
  • Total Potential Audience: 80.5 million
  • Media Views: 92
  • Industry Benchmarks (on a scale of 1 - 100)
    • Total Visibility: 54
    • Pickups: 58
    • Traffic: 52
    • Audience: 53
    • Engagement: 98
MSN Money (June 16)


Video Demo: Using Dash on CannTrade

[Video Link will be available for the official proposal]

This Proposal: Introducing Dash to the Nation

CannTrade is poised to become the dominant B2B cannabis platform in the US and beyond. The next step on our journey is to launch nationally, and to do so aggressively. Dash will be at “the head of the spear” of our campaign, and this proposal represents a crucial part of executing the plan and strategy outlined below.

Market and Opportunity

Cannabis is a 10 billion dollar industry today, is projected to grow to 24 billion by 2021, and to reach 50 billion by 2027. (These figures for US Market).

Despite the monstrous size of the industry, cannabis is truly still in its infancy. Even the more “mature” market states like California are finding their footing and developing standard modes for business operation. Many states with legal cannabis have just begun handing out their first licenses. These individual states have near-term market potential in the hundreds of millions, with some eclipsing a billion or more.

As an example, Massachusetts, a state with mid-sized market potential, just handed out their first license this June, yet the projected revenue for MA’s year one is over 400 million. While states generally fall short of their first year projections (as was the case for Colorado, Washington, and will likely be the case for MA), most have hit their projections for years 2 and beyond. Massachusetts projects to be a 1.2 Billion dollar market by 2021.

That several new high-value markets, each bound to unique legal regulations, are “hatching” at the same time presents a difficult challenge to design a solution for. This is compounded by the lack of banking services and electronic payments available to the industry. But these challenges represent a perfect storm for the team of CannTrade and Dash. Now is the time to strike, and to strike hard.

We have a golden opportunity as first movers to get in on the ground floor in all of these markets, and our strategy is built around doing just that, and doing it quickly.

Our Strategy -- Dash as a Driver and a Beneficiary

In the simplest terms, our strategy is to prioritize growth over revenue to capture legal markets quickly and completely.

In order to do this, CannTrade will become a free marketplace for all licensed Cannabis Businesses. Premium, paid features will be offered, but the core functionality -- to be able to buy and sell compliant cannabis products through the marketplace and/or exclusive storefront, and the ability to manage accounts, orders, and sales tools through the back end CRM--will be 100% free, with unlimited users.

This means that any CannTrade functionality relevant to transactions (and the use of Dash) will be 100% free, with all barriers removed. This is something none of our competitors will be able to feasibly match, and the initial response from our feelers in the industry have returned overwhelmingly positive reception.

The benefits to Dash should not be understated. Each and every business CannTrade captures will be funneled to create their Dash-ready account (most of which is auto-created for them). Additionally, this proposal includes funding to support the assistance of live human customer success agents who will step every client through the entire process. This will ensure a very high user conversion rate. We believe we can attain an 85% “Dash Ready” client rate by the end of year one.

Beyond becoming the free marketplace for all things B2B Cannabis, CannTrade’s strategy includes strategic hiring in the areas of development, sales, and customer success, and engaging in an unprecedented marketing campaign to reach the entire industry.

The campaign involves leveraging world class PR firms operating both inside and outside the industry, as well as allocating funds to marketing opportunities (both B2B targeted and broad) across multiple platforms and mediums. This will include promotional events, industry magazine placements, strategic billboards, social media engagement and influencers, video and video testimonial production, podcast advertisement, and more. Dash will be woven into the marketing campaigns wherever appropriate, and explicitly touted to the cannabis business community.

CannTrade is far and away the premier platform for the cannabis industries, and the only one offering a digital payment solution. And we are going to make sure everyone knows it.

The Ask and Use of Funds

There’s no denying it: the task ahead of us is a big one. Capturing several markets quickly means we will need to allocate ample resources to:
  • Legal: Consultations and contracting in each market (individual state/country)
  • Development: State specific tweaks to ensure compliance
  • Development: Integrations with every government-contracted Compliance Database (Seed-to-Sale/Track & Trace)
  • Account Managers & Customer Success: Ensure we can scale with growth & convert all sign-ups to active users
  • Marketing: Both national and state specific. Multifaceted, multimedia, and targeting both the B2B and B2C communities, and even the general population.
Because we are prioritizing growth over revenue, we are looking for Dash’s assistance, especially with the initial 3 month burst of the 12 month campaign.

We are asking for 3 monthly payments of $251,000 USD (~1026 Dash) to offset costs to support, promote, and educate our current and future clients on Dash, and to launch a national (and international) effort to convert those users into loyal Dash Adopters.

The following chart outlines the costs associated with CannTrade’s push for a national launch:



Final Word and Thank You!

Troy Dayton, CEO of The Arcview Group said, "Aside from cryptocurrency, there is simply no other industry
changing as rapidly or as unevenly as the cannabis sector.”

And while he may be right, I know that together, Dash and CannTrade can inject some much needed stability into both of these sectors in a short time frame, and at the same time bolster our stangings in our respective spaces.

You have our thanks and appreciation for considering this project. We eagerly anticipate your questions and look forward to answering them honestly, promptly, and to the best of our ability. Feel free to learning more about CannTrade, our incredible and well connected Board of Advisors, and my fellow founders in the “Addendum” below.

Best Regards!

The rest of the proposal (hit the character limit).

Come meet us?

Would you like to meet and talk to us in person? CannTrade will be at the world’s biggest Cannabis event and trade show, MJBizCon, in Las Vegas this November (14th-16th). And the best part is we have situated ourselves directly alongside the booths of both Dash and Alt Thirty Six. Counting our friends at WebJoint, our organizations occupy an entire row section--so you can speak with all of us and get a first-hand look at everything we are putting together. I will personally be at the CannTrade booth for the balance of each day, and I’d love to meet any of you who can make it. Find our booth number below.



For those that are unfamiliar with CannTrade--what we do and who we are--feel free to read about us below!

What is CannTrade?
CannTrade is the premiere B2B Cannabis Platform in the industry. We combine a vibrant B2B Cannabis Marketplace (including Hemp/CBD and other products), a powerful CRM, and Database of Key Industry data. Feel free to visit us at CannTrade.com

Our Board of Advisors
We have assembled a diversely talented and well connected (inside and outside the industry) board of advisors. They continue to promote our platform and open doors for our team.

They are:

Harvey Englander - https://www.linkedin.com/in/harveyenglander/
Karen Paull - https://www.linkedin.com/in/karenpaull/
Andrejs Bunkse - https://www.linkedin.com/in/andrejsbunkse/
Wendy Robbins - https://www.linkedin.com/in/thewendyrobbins/
Alex Glueckler - https://www.linkedin.com/in/alexander-glueckler/

CannTrade Co-founders:

Mark Restelli - CEO

Mark is a former professional football player who sustained a career ending foot injury while playing for the Miami Dolphins. It took a total of 4 surgeries over a 3 year period to get his foot back into functional shape. Realizing cannabis was the only medication that could safely relieve the pain from 20 years of football injuries, he dove headlong into the cannabis industry at the close of his professional athletic career. He soon discovered that cannabis would be his lifelong passion.

Mark earned a degree in Agricultural Business with a minor in Viticulture from California Polytechnic State University. He worked in the wine industry during his 4-year professional football career and was responsible for the creation of his own small production distribution company called Glasshouse Wines. After leaving the wine industry and retiring from football, Mark spent the last 6 years working in the medical cannabis industry. He began by growing cannabis and used his skills in design and marking to develop medical cannabis products for several shops and brands. In 2014, Mark founded Plant 2 Products, a collective in California that is licensed to cultivate, extract, manufacture, and distribute cannabis products. https://en.wikipedia.org/wiki/Mark_Restelli https://www.linkedin.com/in/mark-restelli/

Adam Holub (CISSP)- President

Adam has a composite professional background with roots in both technology and academia. His love of literature and education led him to teach eight years of high school English in New York City. Prior to teaching, Adam was the Senior Deployment Manager for Foundstone, Inc., a vulnerability management and strategic security professional services company acquired by McAfee in 2004. Adam managed the operational logistics for deployment at dozens of Fortune 100 clients, including large-scale security platform customization for the largest bank on the eastern seaboard, and spearheaded the manufacturing of the security appliance for the U.S. Department of Justice and the Pentagon. Adam earned a BA from the University of Massachusetts at Amherst, completed advanced coursework at New York University, and has a Master’s in Education from Pace University. https://www.linkedin.com/in/adam-holub-8500b82/

Drew Harmon - CTO

After earning his Bachelor’s of Science degree in computer science from Stonehill College in 2005, Drew joined QVidian (Formerly Kadient) building a distributed job processing architecture for an enterprise level CRM product. He took that expertise to Digital Results Group in 2009 where he was one of the lead developers on Ageon ISR, a cutting edge software product used to provide real time intelligence data from cameras, RADAR, and gunfire detection systems to US Army and Navy forces. Ageon ISR continues to be widely deployed throughout the world and has contributed to a significant reduction in US troop deaths by IEDs. https://www.linkedin.com/in/drewharmon/

Brian Holub - CIO

Brian began his career in the software security industry working for Foundstone, then Mcafee and Intel (both through acquisition). Over the course of 8 years he ascended to a lead development position serving clients from major financial institutions, government departments, military divisions, and the largest corporations in the world. In 2010 he decided to scratch his entrepreneurial itch and start WODTogether, Inc. an SaaS company focused on financial and business management for CrossFit affiliate facilities. WODTogether facilitates tens of millions of dollars of transactions for clients as well as tracking membership activities, all the way down to each gym clients health and fitness benchmarks. https://www.linkedin.com/in/bholub/
Hello, and thank you for your pre-proposal. I've been following your progress and while I can't speak for all my fellow MNOs, I can say personally I've been greatly looking forward to seeing what you and Alt36 and our other Cannabis Industry partners are able to accomplish. I understand that so far there have been some hurdles with licensing and regulation, but some assurances have been made that once those obstacles are overcome we'll see an uptick in activity (and hopefully a commensurate rise in Dash price). However, just so you're aware, many MNOs have expressed frustration so far at the relative lack of communication and visible accomplishments of the hitherto significant amount of funding that has been allocated to Cannabis related ventures. I think we all recognize the *enormous* potential that our partnership(s) have for all of us to revolutionize the Cannabis industry and provide an ideal use case for Dash--and let's be honest, make piles and piles of money for all of us--but with the current cryptocurrency market downturn, many MNOs have become far more scrutinizing and guarded when it comes to treasury spending. In addition, our Core Development Team has adopted a different financial strategy this year in building up reserves to ensure uninterrupted development and launch of our "Evolution" product, so according to their CFO, they will be requesting at least 50% of the monthly budget to fund their operations for a sufficient duration to see that through.

So with all those things considered, unfortunately I think it's highly unlikely that my fellow MNOs will be willing to fund a project of this magnitude at this time, especially until communication improves with our Cannabis Industry partners and we're able to get a better grasp of what has been done with the nearly $1.5 Million we've already allocated to Cannabis-related ventures.

I totally understand that there are a lot of time-sensitive, critical windows of opportunity where funding could have maximal benefit in this burgeoning industry/market, and so I want to do everything in my power to ensure that both Dash and Canntrade can reach the best possible arrangement for us both--especially since we've already contributed so much to your project and others in your field--but at the same time, the network will also need greater assurances that we're not treading in to Sunk Cost Fallacy territory. If the cryptocurrency market sees an uptick in the next few months or even a bull run-up like last year, then we might have more to throw around for proposals of this magnitude, but even if that occurs, the other aforementioned issues will need to be addressed. A more in-depth or comprehensive account of your accomplishments so far would go great lengths to greasing those wheels, so to speak. If public disclosure of some of those accomplishments is an issue, we do have a Masternode Owner-only channel on Dash Nation Discord, as well as a Masternode Owner Office channel where proposal owners can confer with some of the more active MNOs like myself directly.

Just some things to consider.
Arthyron, thank you so much for your response! I was hoping to receive a few more responses (and maybe I still will) before we post the official proposal, but I'm very happy to have yours to work with. :)

And to your points--I very much understand your position, and I don't doubt it is shared by many. We are definitely asking for a hefty sum during a time when the currency is valued far below its pinnacle from earlier this year. However, if we secure that funding, we will be able to offer our services to cannabis businesses for free. Our feelers in the industry have responded to this offering with overwhelmingly positivity. These businesses include some of the biggest names in Cannabis (which I cannot disclose, but will say are multi-state operations with licenses encompassing cultivation, manufacturing, distribution, and retail--and at least one of which is publicly traded).

Cannabusinesses have been slammed by costs related to licensing and taxes, and being able to offer the only free solution (which also happens to be the best designed and feature rich) is a sure-fire stimulus for rapid growth. CannTrade can foot the bulk of the expense for this 12 month plan (and then continue to support it beyond 12 months), but not without a jump start to offset what will be a significant initial buy-in cost. This is what we are asking for.

Expanding nationally in this industry is difficult and resource intensive. It demands legal, development, sales, support, and marketing expenses, often treating each US state as a separate country. If we put our plan into action, we can effectively take the industry without any real competition in 25 of the 30 states (+ DC) where broad legal cannabis laws are on the books. I personally hold modesty in high regard, but I do want to be clear, there is no other business in our space with a better understanding of our industry, and how to serve it, than CannTrade.

While there is some sensitive information in terms of our specific strategy that I can't share without the protection of an NDA, I have no issue with disclosing some of the data you mentioned regarding our platform and accomplishments (such as number of users, average monthly transaction value per business, our growth rate over the past 6 months, our target market #'s etc.). You can expect to see those figures included in the official proposal.

I'm very much hoping to earn your support, because the opportunity is incredible and our path to achieving our goals (which include being a significant part of helping drive Dash's value back up) is well conceived.

I am also VERY willing to offer additional information, a full demo of the CannTrade platform, and, if NDA's can be put in place, very exciting information related to what we have already developed but have not yet released, our strategy going forward, and our future development plans. If you and other MNO's are interested in this, it could be scheduled with very little notice.

Again, thank you so much for your response, and let me know if you (and other MNO's that you are in touch with) are interested in the above options, and we can get something figured out.


@Adam Holub , thanks for addressing my questions and so quickly.

Just to give you an idea of what we have to work with, the monthly budget is currently 6176.72 Dash. 3004 of that is already allocated to previously funded multi-month proposals. While there are some precedents for these previously funded proposals being de-funded, this usually only occurs in cases of malfeasance or catastrophic failure to perform as agreed. To be fair, several of those should be dropping off for next month's budget, creating a little bit more of a funding window. Dash Core Group is continuing their build-up with two proposals for a total of 2585 Dash, and these are extremely likely to be funded (already very close) leaving only 587.72 left in our budget for the month, which is far less than what you are asking for even a single month. In order to fund even a month of your project, we would have to de-fund multiple previous multi-month projects, and not only that, it would negate multiple other proposals which are currently competing for treasury funding, many of which are asking very small amounts. I'm sure you can understand from a business perspective what the likely outcome is. That being said, the cryptocurrency industry is hard to predict, and some significant change to the value of Dash could open up more opportunities in the coming months, especially if Dash Core Group is not taking up so much of the budget.

All of that in mind, if such an opportunity presents itself, I would be the first to pull the trigger so whatever I can do to help on my end, I'd be willing to do, including signing an NDA, etc. I'll also see if some of the other more active MNOs will be willing to consult. I want this proposal to succeed for more than just the sake of Dash, but also for the benefits this industry provides to the world.
@Arthyron That is great information.

I was aware of the 3100 available, but I had not seen the Dash Core group proposals that are near imminent (and should be funded). I can see that the way our ask is structured is not realistic given this info. The funds simply won't be available.

I'm wondering if a different structure could be proposed and spread out over 5 months, with a smaller payout this month--perhaps something in the neighborhood of 250 Dash, and then the rest spread evenly over the subsequent 4 months. This would allow us to still put the wheels of the plan in motion immediately, lessen the monthly hit on the Dash business fund, and still not impact our timeframe. I know proposals with payouts that go on for over 3 months are rare, but with this opportunity, I think it will be something worth considering for the MNO's.

Thanks again!
@Adam Holub , Yeah, the switch from "not yet funded" to "funded" and its effect on budget allocation trips a lot of people up, something I hope we can fix when we migrate to Dash Nexus. I can't promise that any particular amount would be more agreeable, necessarily, but with clear milestones with deliverables, escrow, and impeccable cooperation with Dash Watch, multi-month proposals are not as much of a hindrance as they have been in the past. Honestly, I think MNOs prefer them because of the amount of recourse they give us vs. major lump sum payments where the other parties can cut and run. It's still going to be a hard sell just because of the current limitations of the budget over all, but I can say with certainty that it has more of a chance than your original funding request. Personally, I would rather see it spread out even more, but I can understand how that may not be feasible for your operations.
Also, looks like Core threw in another proposal this month to get out ahead of taxes for 785 Dash. However, I went through and looked at all the multi-month proposals that will be ending after this month, and the total amount of Dash that will free up for next month amounts to 2255 Dash. Granted, some of those might come back for more funding--especially depending upon depreciation of Dash price--but that opens up some possibilities that just aren't there this month.
Thanks for your feedback and your arithmetic work, Arython! You've gone above and beyond. It's quite helpful and will impact the proposal & terms we put forward.

One more question for you, Is it possible to have different payout amounts for each month? For instance, if we submit the proposal this month and spread it our over 6 months, could we request month 1 be for 250 Dash, Months 2-6 be 550 Dash each? Or something similar? I assume so, but I just haven't seen it before on the budget proposals.

Also appreciate your comment @mastermined. CannTrade is currently already under contract with Dash to be the exclusive cryptocurrency supported by our platform. It is a 3 year contract, but we have no plans to support any other crypto--our goal is to make Dash the dominant currency for cannabis so it is the only one we will ever need to support. I would have no issue with extending the contract to 5 years if it is something Dash wanted to do.

As for Core escrow, we are definitely open to that as well. In fact, our last proposal utilized both escrow and milestones. I'm not familiar with Dash Ventures, and a quick google search is pointing me to the wrong place (I believe), so if you could point me to the right direction there, I'd be happy to look into it.

Obviously, we really want this to happen, so if we can take steps that make the MNO community feel protected and grants greater recourse if we don't deliver, and we can still run an extremely effective campaign to expand nationally, we're happy to do it.
Hi guys!

Given the great information I've received, and the current situation with the budget for July (if you assume the Dash Core Team's budget items pass, there are little to no funds available), it doesn't make much sense to post this proposal this month. Instead, we will make some adjustments and post the official proposal in August. I am going to leave the pre-proposal up here for the time being, because I'd love to continue to engage in conversation.

Thanks again to those I have corresponded with thus far, and I look forward to hearing thoughts and fielding questions from more of you :)
Hi guys!

Given the great information I've received, and the current situation with the budget for July (if you assume the Dash Core Team's budget items pass, there are little to no funds available), it doesn't make much sense to post this proposal this month. Instead, we will make some adjustments and post the official proposal in August. I am going to leave the pre-proposal up here for the time being, because I'd love to continue to engage in conversation.

Thanks again to those I have corresponded with thus far, and I look forward to hearing thoughts and fielding questions from more of you :)

In regards to Dash Ventures, it's the first major question in that long interview with Ryan Taylor, likely going to be a big deal for Dash and its partners moving forward. I'm glad you're able to see the situation and alter your strategy accordingly. This is a huge opportunity for everyone involved, one I hope to see through to fruition.
One more question for you, Is it possible to have different payout amounts for each month? For instance, if we submit the proposal this month and spread it our over 6 months, could we request month 1 be for 250 Dash, Months 2-6 be 550 Dash each? Or something similar? I assume so, but I just haven't seen it before on the budget proposals.

Apologies, I just noticed that you asked this additional question, overlooked it. Currently, to my knowledge, you can only request a consistent amount on a multi-month basis. So you would need to make a different proposal each month you wanted to ask a different amount. However, with an escrow agreement with Core, you could ask for a particular amount for the duration each month, and then have Core pay you from that escrowed amount in whatever terms the agreement stipulates, so there could be the potential to "weight" the payments in that way, but that's probably not feasible for what you intend since Core would need to have the funds already in hand to pay you increasing amounts.