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Charlie Shrem's failed Dashpay card

Discussion in 'General Discussion' started by HedgedAndLevered, Jul 3, 2018.

  1. HedgedAndLevered

    HedgedAndLevered New Member

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    As many of you are aware, Charlie Shrem presented a proposal to create a dash pay debit card that never ended up materializing. As he will be at a conference I'm attending soon, and the community's questions have gone unanswered I'm going to directly ask him if he plans to burn the dash, and why not, if not. I'll try to do this live in front of the audience, but I'll just try to ask him in the hallways or wherever I can if not.
    Before I ask him anything, I want to make sure I have the facts first and would like community input on my question phrasing.
    What are the most recently updated details on that proposal? From what I understand, he received 450 Dash under this budget:
    "- Initial 1 time card program fee is 150 DASH
    - Development costs and maintenance 75 DASH per month.
    - Customer support is 25 DASH per month."

    His last communication with the community was here

    where he said he "was looking to have this card for sale *within a few weeks* at 'the end of august [2017], hopefully before then'" and said you could soon go to http://www.dashpaycard.com/ for details (dead link now)


    First of all, I'd like to say this should be a learning experience for the dash community/MN in what happens when you get a budget like this, and pay it all up front for no reason. We should at least have been able to save the 3 * (75+25) dash from "maintenance" and "customer support" when there was nothing to maintain and no customers.
    I mean... dash went from $77 on the date he was funded (April 19), to $100 May 19, to $200 June 19.
    But we didn't get a chance to rebalance or withdraw funding bc it was paid up front and not into escrow.

    Anyway, he essentially owes the network at least 300 dash, as far as I'm concerned. Is this a reasonable estimation?
    The preferred way of returning this should be to burn it, right?

    I plan to phrase my question as follows in front of everyone, but if I can't, I'll try to approach him in the hallway and get a cell phone video on it if possible. I'll edit this post below to rephrase my question based on the community's thoughts.


    "Charlie,
    On April 19th of last year, you received 450 Dash from the DASH DAO for development of a debit card. You said there would be a 150 dash one-time fee, and 100 dash per month for 3 months for "maintenance and customer support"
    I have two questions. (if he rolls his eyes or laughs at this point, I'll say "well now I have 3 questions")
    One, when did you convert the Dash you received to fiat? 450 dash was $35,000 @ $77 but if the "ongoing maintenance" was really per month, your fiat budget for the 100 monthly would have tripled during this time. Do you ever plan on releasing these details, and why not, if not"

    [btw, does anyone have on-chain evidence on when he transferred to exchanges?]

    Two, do you ever plan on burning the 300 dash you quoted for "maintenance and customer support, considering that you never issued a single card, and thus there was no maintenance or support. Or any Dash at all?

    (
    if and only if I said the "3 questions" thing earlier:

    and Three, you haven't even given the dash community the common courtesy of a report about what went wrong, and instead you just laugh dismissively when this is brought up. So I was wondering why you think this is so funny?)"

    Btw where should I buy dash swag to wear for this?
    I want a blue hat with an embroidered logo. sponsor it?: XumdambD55mKs3XoB334GT4uQJhCHr26Ep


     
    #1 HedgedAndLevered, Jul 3, 2018
    Last edited: Jul 3, 2018
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  2. strophy

    strophy Administrator
    Dash Core Team Dash Support Group Moderator

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  3. solarguy

    solarguy Active Member

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    In my estimation, Charlie will never do another deal with the Dash community. He is a textbook case of how not to handle a situation that runs into problems.

    Having said that, there is some impending deal where he has agreed to give the Dash back (I believe) and "the check's in the mail". I believe Mark Mason knows the details.

    Of course, I will believe it when we get our hot little hands on it. I'm surprised anybody in the crypto space will do business with Charlie now.
     
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  4. HedgedAndLevered

    HedgedAndLevered New Member

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    Thanks! was looking for that.
    He sent to XfNeikkfga1GUVt3TUE5XjB4jRhQXPPiKa which has received other budget payments directly. Anyone know who/what group owns that address?
     
  5. strophy

    strophy Administrator
    Dash Core Team Dash Support Group Moderator

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    XfNeikkfga1GUVt3TUE5XjB4jRhQXPPiKa is the Dash Core escrow address. You can see this by searching for it on https://dashwatch.org/cards

    @Mark Mason may know more about what the arrangement was regarding escrow...
     
  6. InhumanPerfection

    InhumanPerfection New Member

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    XfNeikkfga1GUVt3TUE5XjB4jRhQXPPiKa is Core Group address (you can check it here in "Super Blocks History" search box).
    XwNDKfgDmoKrpJy67a56xnq238jJynAHkE is also belongs to Core Group (look at this transaction - it have 2 inputs with both of these addresses - which means that both of addresses have the same owner).

    Now look at this (from proposal):
    and this chart (proposal hit threshold on March 17)
    and this transaction from Core team on March 23 (2 weeks prior to that super block), exactly 450 Dash to address XwChHbGRVwACULR9kGyzYFdKxkehccGRzr. This looks like payout to Charlie.

    Going further, assuming that this is Charlie's address.
    Now quick blockchain analysis shows that almost all of these 450 Dash passed through one address XpESxaUmonkq8RaLLp46Brx2K39ggQe226 (on March 24-26). I have recognized this address because I've made some investigation for this poor guy. Now look at his last comment:
    Changelly! All 450 Dash went to Changelly! Very bad sign...
     
  7. HedgedAndLevered

    HedgedAndLevered New Member

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    Wow
    Ok so core just fronted him all the money before his proposal passed? Just because he was so well known?
    Who made that decision?
    Does not sound like decentralized governance...

    The dude went to prison for assisting money laundering... then sends all his dash to changelly. Sounds about right.
     
  8. Macrochip

    Macrochip Active Member
    Masternode Owner/Operator

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    It's probably the reason Daniel Diaz is no longer with Core. He authorized that transaction (which I know for a fact, because a Core Team member told me) and paid for this f*ck up of a proposal with his job (I think. Makes most sense to me at least). Not the first time he screwed up either. After the disgrace of the Scamassu disaster that was the only logical consequence.
    Best part? Didn't hurt him too much. He's probably busy enjoying cocktails with Ira Miller in Panama right now. At least that's what the pictures on Twitter showed him doing when the proposal was still running, as result-free as ever.
     
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