Mechanism by which MNOs can be awarded dividend-like payouts

feedbands

Active Member
Dec 2, 2017
309
172
113
34
Here's something that should probably exist (if it doesn't already - please correct me if I'm being ignorant): some sort of way to distribute a payment in dash equally between all MNOs.

Let's say someone solicits the treasury for funds to buy a coffee shop that will 100% run on Dash. Proposal owner gets the funds, starts the coffee shop, and is successful, excellent. Now it is time for the coffee shop owner to distribute a % of the profits evenly among the masternodes. Perhaps the proposal was approved with a 75% profit share going to MNOs and 25% profit share going to the proposal owner.

So, each month, or quarter, the proposal owner opens their QT wallet, heads to the debug console, and initiates a payment for 75% of the profits to distribute among the MNOs.

Does this exist? Can it?

Strikes me as critical infrastructure for the DAO.
 
Last edited:

TheSingleton

Active Member
Masternode Owner/Operator
Mar 27, 2017
275
140
103
I don't think this should exist. The point of Masternodes is not to invest in projects that will directly result in profit for them. Instead, they should choose to invest the treasury funds in projects that help Dash overall and thus themselves.

I'd prefer if we have some pool that would accumulate all unspent treasury funds and to which profits like in your example could be added. Those funds would then be used to pay for future proposal.
 

feedbands

Active Member
Dec 2, 2017
309
172
113
34
I don't think this should exist. The point of Masternodes is not to invest in projects that will directly result in profit for them. Instead, they should choose to invest the treasury funds in projects that help Dash overall and thus themselves.

I'd prefer if we have some pool that would accumulate all unspent treasury funds and to which profits like in your example could be added. Those funds would then be used to pay for future proposal.
Ah yes, that would be much better, if there were a mechanism to distribute profits generated from proposals back into the treasury to fund more proposals. Great feedback.
 

akhavr

Active Member
Oct 11, 2014
758
376
133
Well, one always can grab a current list of masternode addresses and sent a multioutput transaction there. Most likely several ones, I doubt a transaction could have 4k+ outputs..

Ah yes, that would be much better, if there were a mechanism to distribute profits generated from proposals back into the treasury to fund more proposals. Great feedback.
The question would be who and how will operate such New Treasury. The usual governance question..
 

TheSingleton

Active Member
Masternode Owner/Operator
Mar 27, 2017
275
140
103
The question would be who and how will operate such New Treasury. The usual governance question..
Well, I would think we would create a special account for that controlled by Sentinel. Superblocks would just pay the whole output to that account. And spending the money would only be possible through proposals voted on by the Masternodes.
 

feedbands

Active Member
Dec 2, 2017
309
172
113
34
Ideally these funds would funnel seamlessly back into the existing treasury system and augment the monthly budget.
 

TroyDASH

Well-known Member
Jul 31, 2015
1,251
794
183
In my opinion...
When the Masternodes vote to spend dash, they are spending the entire dash network's money, not their money. I am claiming this because (1) the Masternodes would not otherwise have possession of the unused budget, and (2) the inflation caused by adding to the circulating supply affects the value of everyone's dash, not just the MNs. Therefore if any profits are going to come back, they should go back to the entire network, not just the MNs. Easiest way to accomplish this is to burn dash. Nobody ever seems to like this idea because setting money on fire might not be intuitively a good idea, but it makes the most sense to me.
 

feedbands

Active Member
Dec 2, 2017
309
172
113
34
I think you're idea of burning dash makes a lot of sense and it cannot be argued that such action does not add value to everyone's dash.
 

TheSingleton

Active Member
Masternode Owner/Operator
Mar 27, 2017
275
140
103
Yea for now burning dash would be the obvious thing. It doesn't require any complicated improvements to the proposal system such as my suggestion.
 

feedbands

Active Member
Dec 2, 2017
309
172
113
34
What if proposal profits were generated in fiat for some reason. Or lets say the treasury voted to fund a business that was later acquired for over a billion dollars. The acquirer would only pay in fiat for the acquisition. Or let's say the project has an IPO.

The fiat generated from this could then be spent to:

1. purchase dash and burn it (a billion dollars worth? That would take a serious amount of dash out of the supply. would this be the best option?)
2. purchase dash and distribute into the treasury
3. purchase dash to otherwise benefit the system in some way.

Keep in mind, with even a single successful proposal to seed a business, we could be talking about millions of dollars, tens of millions, maybe even a billion dollars worth of fiat to return into the Dash ecosystem in some way.

What we are essentially talking about is something similar to a Venture Capital model. Proposals have already been funded that this model could be applied to. In fact, it seems every cycle, multiple new businesses are being given hundreds of thousands of dollars in seed funding to start from nothing. Or to go from something to something much bigger. This is exciting! But we need a model for Dash to be properly compensated if one of these businesses becomes huge. Because three new businesses will be created out of thin air with treasury funds next cycle... and the cycle after that... and the cycle after that... And MNOs are not voting them into existence so that they can fail.

So, if Dash continues making the kinds of strategic early-stage or mid-stage investments that is already happening multiple times per cycle for hundreds of thousands of dollars, what do we feel is an appropriate framework for Dash to share in the future success of these ventures, whether we are talking millions in fiat profits or billions in a fiat exit.

The biggest venture capital firms in Silicon Valley do not even make this many investments each month.

And how will we prepare now to handle in two months when all the entrepreneurs who would be going to silicon valley VC firms come to Dash instead? Because you can bet that's coming.
 
Last edited:

feedbands

Active Member
Dec 2, 2017
309
172
113
34
Good to know.

I am working with someone to bring forward a proposal that involves purchasing a small piece of land and some revolutionary machinery to create a 100% dash powered micro-economy. It is very exciting. I want to make sure the network fully owns all the property/plant/equipment and that the profits are able to be distributed back to the network properly. The real estate market in austin is hot and the value of the land alone will almost certainly increase and although the micro industry we can create powered by dash is the most important aspect of this, the real estate being purchased would be a nice cherry on top. Perhaps the Network would enjoy going through the motions and working out the kinks to make land acquisitions, especially in a way that adds clear value to the Network.
 
Last edited: