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Is a 30-day average appropriate for proposals?

Discussion in 'Budget Proposal Discussions' started by feedbands, Dec 21, 2017.

  1. feedbands

    feedbands Active Member

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    Wondering everyone's thoughts on the common practice of using a 30-day moving average for proposals.

    The price of dash has gone up over 100% in the last few weeks. Does anyone actually expect it to return to the $600- $700 average?

    Do folks think the moving average is still good practice for proposal owners in times like these?
     
  2. Isobel Chaura

    Isobel Chaura Member

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    Was just having this same conversation, historically the volatile Crypto market has shown the possibility of pull backs and this could leave the projects vulnerable to a funding gap. Is there another solution?
     
    #2 Isobel Chaura, Dec 21, 2017
    Last edited: Dec 21, 2017
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  3. feedbands

    feedbands Active Member

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    One thought is that if Greencandle / escrow providers keep disbursements pegged to USD, surplus dash could be kept in a fund to insure against pullbacks
     
  4. Isobel Chaura

    Isobel Chaura Member

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    I think this idea could work but DASH would have to pick 2 or 3 escrow providers to work with. Centralize project funding in that case.
     
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  5. sasababy

    sasababy New Member

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    The best way to do this is to take a hosting service if the proposal exceeds a certain amount. The hosting service provider supports the proposal with DASH corresponding to the U.S. dollar exchange rate. For example, more than 200 DASHs must be in a hosted mode.
     
  6. thesavoyard

    thesavoyard Member

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    What does everyone think about a law firm for escrow? I trust the Dash core team to handle it, but the question is do they have time? I think they could disperse payments and make judgment calls, bound by a contract. The downside is of course fees.
     
  7. Kevin Stalker

    Kevin Stalker Member

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    Law firms do law, they don't do validation of proposals. We need a committee to police and verify proposals, not a law firm - FFS.

    And.. I assume the 30 day moving average in measured in dollars? Why does everyone think that dollars are going to be the way to measure the value of things? Dollars could become volatile as well. And who is to decide in advance and in perpetuity what the dollar value of a proposal is? We need masternodes to vote on the adjustment in the proposal fee periodically, then we can adjust it according to need. It's obvious. The Median idea was one of the best. The only alternative is the "up a bit down a bit" option.
     
  8. thesavoyard

    thesavoyard Member

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    Do you understand a law firm managing an escrow is probably the most trustworthy party you can get right? They also manage investor money...
     
  9. Kevin Stalker

    Kevin Stalker Member

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    Yes, of course. Managing the escrow is a thing. But i'm primarily concerned with finding a reliable way of checking that the person making the promises kept them. Surely that's a matter of extended discussions and checks, and is subjective. I wouldn't expect a law firm to do it because they work by the hour and work with legal terms. Hey, I could be wrong, it just doesn't feel right.
     
  10. feedbands

    feedbands Active Member

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    What I would like to see, even moreso than more escrow options (since we already have two solid escrow options in place), is a proposal validation service. For any proposal over X amount, someone will actually fly out to you and have lunch or coffee with you and confirm that you are a human that exists and intend to do what you say.

    Kevin I just realized we are saying the same thing. Surely it would not be a difficult task to get the treasury to pay for a round trip flight for each large-ish proposal submitted.
     
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  11. Isobel Chaura

    Isobel Chaura Member

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    Now this we can all get behind, they should really get someone to come hear out people's proposals. And also easier access to escrow would also be nice. Maybe they should let us know which escrow companies they prefer and put is as a requirement if that's the case.
     
  12. solarguy

    solarguy Active Member

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    We just passed a proposal to introduce substantial accountability into the treasury process. You were perhaps unaware of this? It should be up and running in march.

    https://www.dashforcenews.com/dash-watch-treasury-proposal-tracking-accountability-system-funded/

    Carry on, have fun, WIN!
     
  13. solarguy

    solarguy Active Member

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    The Dash FinTech investigator. If a proposal owner (as noted, > ~$80,000-100,000 value) is unwilling to sit down for a 2 hour meeting to facilitate due diligence, your chances of passing go down dramatically. Not required of course, just recommended. And if smaller than $80k, the service is still available, but the prop owner must foot the bill. Again, totally optional.
     
  14. Santos Bermúdez Ruiz

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    Hey feedbands, I believe this to be one of the more viable solutions to the problem. Maybe we'll be needing more escrows to achieve this?

    On the other side, in my opinion, the 30 day average works just fine if we had stability in coin price, but as you stated, thats not the case in these times. Hope this thread helps generate solutions to this issue

    Cheers,

    Santos
     
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  15. feedbands

    feedbands Active Member

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    I do not believe we will have stability in the price near-term. Our price is far too correlated to Bitcoin and bitcoin is entering a period of increased volatility.

    Why is Bitcoin seeing increased volatility?
    In December, Bitcoin futures began trading. This allowed institutional investors to take short positions, creating market incentives for Bitcoin's price to go down. I predicted at the time that we would see a massive runup, followed by a massive drop. Why? Becuase this is the most profitable strategy for billionaires in an unregulated environment. With a few billion dollars you can easily buy up Bitcoin and move the price up 100% (that was the jump to $20,000 that we saw). Then, you can take out short positions via the futures market and profit for every dollar bitcoin drops. Then you can liquidate your bitcoin holdings and plunge the price by 50% and cash in your short futures for a fortune. Perhaps this is how we can explain Bitcoin's run from 8k to 20k back to 8k?

    People do not realize that we are entering an incredible period of volatility because cryptocurrency is unregulated. There are MASSIVE market incentives to drive the price both up and down and fortunes to be made on both sides of it. And so, that is what we will see.

    Until Dash becomes immune from Bitcoin's volatility, which it may in the future as we see increased adoption and a carving out of a true niche for Dash in the payment space, we should expect volatility.
     
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  16. feedbands

    feedbands Active Member

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    Solarguy, Yes. We are on the same page once again my friend. Do you know anyone who is working on this? I am certain I could find a trustworthy and reliable person who would enjoy flying around the world meeting proposal owners. Every proposal owner should be met in person by a representative of the Network if for no other reason than to look them in the eye and sense their motives and intentions and trustworthiness.
     
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