Decentralized Governance System

Decentralized Governance by Blockchain, or DGBB, is Dash's attempt to solve two important problems in cryptocurrency: governance and funding.

Governance in a decentralized project is difficult, because by definition there are no central authorities to make decisions for the project. In Dash, such decisions are made by the network, that is, by the owners of masternodes. The DGBB system allows masternodes to vote for or against proposals, which can then be implemented (or not) by Dash’s developers. A key example is early in 2016, when Dash’s Core Team submitted a proposal to the network asking whether the blocksize should be increased to 2 MB. Within 24 hours, consensus had been reached to approve this change. Compare this to Bitcoin, where debate on the blocksize has been raging for nearly three years.


The DGBB also provides a means for Dash to fund its own development. While other projects have to depend on donations or premined endowments, Dash uses 10% of the block reward to fund its own development. Every time a block is mined, 45% of the reward goes to the miner, 45% goes to a masternode, and the remaining 10% is not created until the end of the month. During the month, anybody can make a budget proposal to the network. If that proposal is approved by at least 10% of the masternode network, then at the end of the month a series of "superblocks" will be created. At that time, the block rewards that were not paid out (10% of each block) will be used to fund approved proposals. The network thus funds itself by reserving 10% of the block reward for budget projects.

What is Governance and what does it mean for Dash

How to Vote

Automated Voting

One of the greatest challenges of building a crypto currency platform is ensuring you create a decentralized system of governance to manage, fund, maintain and expand the project. This key element is absent in every currency to date, the natural response is to create a not-for-profit foundation that is tasked with maintaining the core protocol and promoting the coin but is not really connected to the coin holders in any meaningful way. This approach has a few issues that have been made evident from the experience of older crypto currency platforms.

Guide - Amanda B. Manual Voting (in QT Wallet) DashCentral

Governance Tools

The system would work as a decentralized voting mechanism setup in the software, where budgets for specific projects are proposed, then the masternodes as a whole vote on them. Each project, if it passes, is added to the total budget and paid directly from the blockchain to the person doing the work. With this, we could hire core developers and pay them directly after approval of the work in a decentralized fashion.

Budget Proposal Generator DashCentral VoteTracker Budget Monitoring Proposal Status

Proposal Automated Service

Proposals