Hi everyone. I'd like to invite you all for an interesting discussion. I have attached a PDF version of this post which I think will be more pleasant to read. Please click on the Building The Dash DAO v11.pdf link at the end. (Below is my best attempt at showing this PDF's contents in a forum post, apologies for any formatting errors). Building the Dash DAO Dear Dash community, This post is my first official contribution to Dash. First of all, I’m thoroughly impressed with the level of professionalism in this community, especially when compared to other coins. Buying into Dash was easy, good liquidity; setting up the masternodes and understanding how they work was also a breeze, thanks to the documentation on atlassian. I’ve had excellent conversations with other masternode owners at the #MNO-ONLY channel on the Discord App, and if you are one and are not there, I highly recommend joining. These folks are sharp! Special thanks to @TroyDASH, @thedesertlynx, @JGCMiner and @TaoOfSatoshi for reviewing and for the excellent contributions. (Disclaimer: opinions presented in this document are strictly my own.) I am in my 40s, have a background in law, business and IT. I studied in a country with civil law as its legal system, which wasn't very useful when I moved to common law countries like the USA. I worked at big banks for many years, climbing the corporate ladder, then moved on to consulting, entrepreneurship and finally investing. I've got a few IT certifications too as I enjoy studying and they certainly helped in my corporate years. I like to focus on the big picture, and it is within this context that I would like to contribute to Dash. The few masternodes I've bought costed me 6 digits each; so, for my standards, I am heavily invested and hope to contribute as much as possible. I would like to live in a world where everyone enjoys the benefits of cryptocurrency and also would like to make a return on my investments; hopefully these goals are not mutually exclusive. Before we begin, I recently got permission to share publicly this Dash Core Organization Chart that I worked on (initially for my own use). I wanted to thank everyone from the Core Group that helped me create it, especially @QuantumExplorer. Here it is: https://www.lucidchart.com/invitations/accept/5fb6d2ef-ebd8-49df-a2e5-f6af06eda2ef Disclaimer: This chart is not an official document from Dash Core Group, is subject to change at any time, and is not guaranteed to be accurate. Every Core team member that I spoke with couldn't contain their excitement for the project. Dash Core Group feels like a cohesive entity, with a well-defined work culture, and they do have laser focus on the upcoming Dash Evolution. I am so thankful to be given the chance to participate in all this at such an early stage. I have a few interesting things to discuss with you all today, particularly on how to improve our Dash DAO, so let's get right to it. The Dash Network Effect. During my research, I considered the invention of the DAO one of the most important aspects of Dash and a revolutionary concept. The implications of Dash's positive feedback loop are profound, as illustrated in this chart made by Ryan Taylor for the Miami conference in early 2017. I’ve spent some time trying to understand what the DAO really is, and I'm going to propose a slightly different way to see it that, in my professional opinion, will dramatically improve its efficiency. The common idea is that the Dash DAO will fund other DAOs. Evan Duffield said that Dash Labs would be another DAO, Dash Core and Dash Force News are also often referred to as DAOs. The sharp folks at #MNO-ONLY Channel on the Discord app proposed we start using the term DFO (Dash Funded Organization) to separate between the Dash DAO and other organizations funded by it. This is an accurate and valid distinction, but in a way shows that the DAO is just a budget. It is a pretty amazing Decentralized and Autonomous budget, that can be used to do incredible things, including funding other companies, but it is just a budget - not an Organization. Now please take a step back and come to the "high level" with me. We are now at 10,000ft, where the small details don't matter, only the big picture does. At this altitude we can safely talk about trends, processes, flows, where we are, and where we want to go, without being bogged down in details. For this to be productive, please stay abstract and on the high level. If I get some details wrong at 100ft, try not let it prevent you from seeing the big picture. A slightly different way to view the Dash DAO. Everyone knows DAO stands for Decentralized Autonomous Organization, but let's recap to make sure we are all on the same page. Decentralized means, at a high level, that no single person or group has control over it, or that control is dispersed and not concentrated. Autonomous means that it does not depend on any other entity; it has its own source of funding, and cannot be shut down. Also, cannot be shut down if leaders decide not to operate anymore. We will get to Organization later. In this general sense, only the Dash Budget itself is autonomous because its funding depends on nothing but the protocol. An entity that depends totally or partially on money from the Dash Budget is not itself autonomous. We could disagree about semantics here, but we can all agree that the Dash Budget is on another level of autonomy when compared to an entity that depends on it. So, at 10,000ft, there is only one DAO in the Dash ecosystem, and it is "the Dash DAO". Today, you call it the "the Dash Budget". It is the only truly autonomous and decentralized entity. All other entities we call DAO today (Dash Core, Dash Force, Dash Labs) are not autonomous because they're either dependent on the Dash DAO, their own profits, or donations. They are also not as decentralized, but more on that later. Finally, unless the budget allocation changes on a protocol level, there will always be only one DAO. Creating another is not possible without protocol changes, because 100% of the budget goes to the existing DAO. Point #1: There is only one DAO: the Dash DAO. It is the only truly autonomous entity because its funding comes directly from the protocol. It is also the only truly decentralized entity, or at least the entity with the highest level of decentralization. Technologies are bound to become obsolete. I invest in other cryptocurrencies but the bulk of my portfolio is in Dash. In my opinion, it has one of the most professional teams in the industry, and what appeals to me the most is the possibility of becoming a self-funded business. InstantSend, PrivateSend, low fees, 2mb blocks, these are all great features, but they're means to an end. A 2mb block by itself is not important; what's important is that it allows us to process more transactions. Other currencies have found (or will find eventually) ways to process far more than we do at the moment, some even without using any blockchain. Consider the following: I was hesitant to include this as it opens doors to low-level discussions, but there is an important high-level issue that cannot be denied: another technology will make Dash's current technology obsolete. If this hasn't already happened, it inexorably will. (Errors in this image, the fact that it only mentions TPS, and the fact it isn't considering Evolution all don't matter for our high-level discussion.) Technology can be copied or duplicated, especially open-source. Dash copied and improved upon Bitcoin. PIVX forked Dash and also changed a few things. A company tomorrow can come up with an exact copy of Coke, or even a better tasting beverage, but what are their chances of getting a significant portion of Coca-Cola's market share? Slim, because it’s never about the product, it's always about the business. Please remember that: it is always about the business. And what is the business? It is the vision, brand, leadership, team, public image, customer service, work culture, partnerships, network distribution, patents, intellectual property, supply chain, logistics and so on. The product matters only in a few industries, and generally only if it can be patented. Dash is in an industry where the product matters even less, because even if we patent a software solution to a problem, we are only patenting that very particular way to address it. (The details on how software patents work do not matter for this discussion). What makes Apple valuable is not their products (software or hardware); these are obsolete in a year or two. What is valuable is their business, and it's what makes it possible for them to come up with new products every year, and quickly adapt to new market conditions. Given enough time, the chances of current blockchain technology becoming obsolete are 100%, even for Dash Evolution. What if Hashgraph is indeed the future, and makes blockchain technology obsolete? If we don't have a business to adapt and all we have is an obsolete technology, we won't last very long. If all we have is the technology, what happens when a competitor comes up with a better version? Technologies come and go, but well-formed businesses adapt and survive. Satoshi Nakamoto invented blockchain; look how many thousands of coins copied his idea (including us). What is the one thing that cannot be easily copied? Our team, structure, brand, community, partnerships, vision, work ethics, ecosystem... these are all also essential elements of the organization we need to build, in order to safeguard our future against technologies we cannot yet foresee. We need synergy, not disconnected teams. Point #2: We have to build the Dash DAO as a proper organization and fully departmentalized, because technologies become obsolete, but well-run business can adapt and thrive. Competing against VISA, MasterCard and American Express. Dash aims to one day compete with the global giants of the payment industry. Although we might have a better product in the future, when Evolution is out, we will have to compete not only in technology, but also in all other areas of business. There will be lawsuits, patent disputes, aggressive marketing campaigns, poaching of our talented staff, lobbying to legally keep us away from certain markets, and so on. Make no mistake: these companies are not here to lose. They will protect their market share aggressively and by all means necessary; they have a fiduciary responsibility to their shareholders to do so. If we do not structure ourselves properly, when we meet these companies for a fight in the marketplace, we will lose. If you bring a "product" to a "business" fight, you will always lose. You can make a cheaper and easier payment solution than the one provided by American Express, but you cannot compete with their business model, sales, marketing, legal, and incentive structures. It is in our best interest to become fully departmentalized under a cohesive and efficient organizational structure, so we can fight the battles at all levels. These companies have been competing for market share every day, for decades, in every field, and they are ruthless. The Dash ecosystem will always need marketing, operations, accounting, software development, legal, finance, auditing, payroll, creative services and so on. The current thinking is that different companies and teams will provide this service, and be paid from its budget, much the same way Dash Core Group does today. The Dash DAO is in a unique position as it can be way more than just a Decentralized Autonomous Budget. It can be a truly Decentralized Autonomous Organization, something the world has never seen before. This is within our grasp; all it takes is for us to start seeing it as an organization and not as a budget. Here is a chart to help you visualize what a fully departmentalized Dash DAO could look like: https://www.lucidchart.com/invitations/accept/ad9452ec-f9d7-4a92-90ee-0f6e22a8e43e Disclaimer: This chart is not an official document from Dash Core Group. Point #3: A well departmentalized and fully formed Dash DAO is needed in order to compete with VISA, MasterCard and American Express. Not only in technology, but also in all other areas of business. If we just have a "product", when we meet them for a "business" fight in the free marketplace, we will lose. Now let's talk about masternodes and how we make decisions.