Core Team Business Development (March)

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Dash Core Group March 1st Funding Proposals
DCG is submitting 2 funding proposals for the March 1st budget cycle:
1) DCG Compensation: $209,000
2) DCG Business Development: $41,000

This proposal
This is cross-posted at https://www.dashcentral.org/p/coreteambd0319

What is this proposal about?
This proposal funds the Dash Core Group’s ongoing business development expenses. The last time funding was requested for the Dash Core Group’s business development budget was in October 2018.

A look back at 4th quarter business development activity
Since our last funding request, the business development budget has been used to fund a large number of integrations, promotions, and co-advertising efforts. Productivity increased in 4Q2018 with 10 integrations and the release of our Kriptomobile partnership results. 4Q2018 compares favorably to 1Q2018 - 3Q2018 when we averaged 8 integrations per quarter.

Our 4Q2018 integrations were as follows:

• Exchange Strategy Pillar:
  • 5 partners
  • Coincola, HBUS, Panda Exchange, Digifinex and IDAX
  • Digifinex now accounts for our #23 and #25 highest 24 hr volume trading pair
  • IDAX now accounts for our #27 highest 24 hr volume trading pair

• Venezuela Strategy Pillar:
  • 2 integrations and 1 integration enhancement with the Kriptomobile update (2.0)
  • Exclusive relationship with all Church’s Chicken locations in Venezuela
  • Biz Dev Capabilities Team creation of web app for DiscoverDash.com to support Kriptomobile 2.0
  • Update on Kriptomobile released (2.0) which included increased DashText promotion with the Krip K1 model, launch of DiscoverDash.com web app and results released: 66,000 phones sold with 53,000 sold in Venezuela

• High Chargebacks Strategy Pillar:
  • 1 Partner, ePaymints. Channel partner with several active discussions ongoing

• Additional High Value Integrations:
  • FuzeX partnership announced and officially signed at Money 2020
  • Integration of Uphold into Android Dash Wallet with iOS to follow

We have tried to provide as much detail as possible in our partnership descriptions. Unfortunately, many items, such as partner level cost is commercial in confidence and we are unable to share. Disclosing exact dollar amounts would additionally impact our ability to negotiate future partnerships and complicate existing ones as the commercial terms would be made public and visible for them to directly compare. Generally speaking, the integration deals we directly fund are low-cost as evidenced by the large number of integrations and promotion activities funded by the previous proposal. Larger requests are directed to the DAO for funding decisions under separate proposals.

Additional detail on how we spend business development funds

• On average, 28% of these costs are for the direct benefit of the Dash User and to drive transactions via discounts, waived fees or a small amount of Dash.
  
  
• In such cases, the partner also has “skin in the game”. This can consist of matching discount levels or fee waivers, absorbing incremental direct costs of their own, negotiated permanent fee reductions, dedicated developer resources, partner supplied PR and marketing channels, etc.
  
  
• Total onboarding cost consists of:
  • Direct integration costs (I.e. API fees, compliance costs etc…)
  • Indirect integration costs (i.e. cost of resource redeployment etc...)
  • Promotional activity
    • Variable expenses such as fee waivers, contests or discounts to promote usage
    • Limited marketing through channel partners
      
• Co-investment grants:
  • Integration grant programs
  • Joint marketing and promotion efforts
  • This includes Alt Thirty Six, BlockCypher and Uphold

What will the funds be used for?
The budget being requested in this proposal is to cover a number of initiatives. This budget will include funding for:

1. Promotional and integration costs associated with:
   1. Kriptomobile expansion
   2. Alt Thirty Six
   3. Unannounced partnerships
      
2. Onboarding expenses to support up to 6 current negotiations with potential partners

We continue to minimise the cost of integration wherever commercially possible. One way we are bounding expenses is by focusing on the top-line growth benefit of a relationship with the DCG business development function, for example through incentivizing users to drive transactions, or adding value in non-monetary ways.

• Create innovative ways to work with both existing and new partners, such as the multi-party Kriptomobile partnership which could not happen with passive networks
  
  
• Highlighting the value of access to Dash’s PR services and social media channels to gain exposure for their business
  
  
• Highlighting the value of referrals and cross-sales opportunities DCG facilitates between its partners
  
  
• Contests that reward transactions with contest entries
  
  
• End-user discounts that are both time bound as well as limited in budget
  
  
• Reclaiming unused Dash, such as we’re doing with the Kriptomobile partnership by ensuring the paper wallets expire. DCG can then sweep unclaimed funds and redeploy them to other efforts

This approach is seeing incredible success in an environment where ICOs in particular have purchased integrations at astronomical prices. DCG does not engage in “pay to play” negotiations. We will continue recommending such offers to still be submitted to the network and provide potential partners with the resources on how to do so. Should they choose to submit a proposal, the Masternodes have final say on whether funding is provided for that partner.

Requested funding is as follows for the March 1st budget cycle:
605.00 Dash ($41,000 USD @ $67.5 per Dash)
5.00 Dash reimbursement for the proposal cost
Total: 610 Dash