Partly yes, but only dash wallets generate money while in the wallet. If someone starts buying dash its not to like get 10 dash to pay his bills, but to get to 1000 coins (and that's what the bitcoiners do now) so he can start generating money/economy without actually doing any work. And this is way way more economically "locked" that you can imagine.
Luckily there are markets to test whether this model works or not.
All we're discussing is the difference between risk assets and fixed income assets - where the lent collateral is "put to work" to earn a regular return. The market decides if that return is worthwhile.
With Dash that "market" is the mining community because they have to supply hashpower to the network AND a portion of the mining revenue. The incentive for doing that is that the NET value of their remaining revenue is increased due to the economic model as a whole supporting a high value coin.
The advantages of this approach are:
• the miner's income is supported in terms of exchange rate with other assets regardless of yeild per hash in mined currency units
• the "missing stakeholders" (investors) are given both and economic return and a level of say in the future direction of the coin via the masternode voting system
• the monetary token is endowed with a native base lending rate that is trustless and which can be enjoyed without engaging with a 3rd party borrower
The tests of success of this approach are:
• that miners endorse it by supplying hashpower to the network (check - see below)
• that the market endorses it by supporting the exchange rate with other assets (check)
And finally - despite al of that - NO blockchain liquidity is "locked" in masternodes
![Wink](https://bitcointalk.org/Smileys/default/wink.gif)
It's the Dash economic model. If people don't like it there are about another 500 out there of all different types serving all different priorities. Judging by this thread though, the only criticism I can see is that "...b..b..but it gives economic incentives to buy and hold".
Of course. What do you think a successful store of value is supposed to do ?
![](https://ip.bitcointalk.org/?u=https%3A%2F%2Fi.imgur.com%2FO9Uo9gY.png&t=664&c=pEp3wUiqxYKfBQ)