I really don't think you have a clue what makes Dash work or any other coin work.

You're in the wrong forum for a start because Dash could not be remotely "forked" to implement the kind of monetary model you advocate. There are loads of them already out there which do, in particular the ICO tokens. I suggest you switch immediately before you lose any more value from the ratio.

This is what Dash should be (and is) concentrating on for competitiveness IMO.

The problem is that it thinks it can afford to throw its store-of-value engine under a bus to do it, pay out un-earned dividends instead and that "user-friendliness" will compensate. This is a fallacy. The subject of faulty reasoning and an incompletely thought-through economic model that's proving impossible to defend in public debate, much less in the open market.

The fact is we don't need to do that. This can all be done while retaining a competitively high mining quotient against BTC, LTC, XMR et al. We have our dual-layer protocol though so masternodes can still be profitable with a revenue stream AND a holding that grows in capital value. The treasury would still work and be an even more efficient source of funding.

Capital gain is what we need to target, not dash-denominated revenue streams which become ever weaker in dollar value.

That argument is moot because Dash only applies it to 40% of its blocks (in economic terms).

Securing the protocol from hacking isn't the primary role of mining. In fact in economic terms it's not its role at all.

It has a far more important function in providing monetary security by way of mediating competition for the new supply and thereby setting an opening price on new blocks emerging from the chain. The problem with Dash is that whatever hashrate it has is only applied to a minority of the chain. The coins that emerge from the rest of the blocks are received by their first holders at zero cost. (That wasn't the case when Evan Duffield first established the reward ratios).

It's exactly the same thing in economic terms as mining at zero difficulty. Consider your masternode as a zero-difficulty miner. (Cos that's what it is).

You can get away with this in some proof of stake chains where the adoption model is based on massive monetary/utility adoption from either use as "Dapp" fuel or for issuing securities the size of a whole nation's GDP or for creating currencies on top of currencies (such as Tezos new USDtz for payments).

In the absence of such a commercial model, you need mining to store value. Bitcoin has an extremely high cost of extracting a block from the chain which means that for most people, in the absence of a multi-million pound Icelandic subterranean server plant, the only way to obtain it is in the secondary market (from someone who already mined it). This goes for EVERY BLOCK. There are no blocks in bitcoin that are given away for free or made subject to "zero-difficulty mining" as with Dash.

So who cares about protocol security from hacking ? It's in interesting technically but worthless in monetary terms because as Dash and other POS coins have demonstrated, it doesn't necessarily require hashpower to achieve.

Monetary security however is what people invest in and that DOES require hashpower if you're a bitcoin clone.



Look - somebody bought 3 masternodes in one gulp Dash/BTC yesterday. A market that normally trundles along in chunks of 20 to 40 DRK. Did that buy move the price up ? No, it went DOWN. Because masternodes have humungous bags of coins that they receive for free that they can just chuck onto markets all day long at any price with impunity. They even retain all of their 1000 Dash so what is there for them to lose ? (In fact their absurdly high level of revenue over cost exposes them to statutory tax pressure such that they lose out by NOT selling).

Following Spork 21, masternodes will be receive HALF of the entire supply of Dash at no cost. As long as that bleeding of blockchain capital continues, this coin is only going in one direction in terms of capitalisation. What investor that does an ounce of due diligence is going to invest in that kind of parasitical economic model ?



Finally, the broader market does not appear to share the view that hashrate is a "waste". Where are the "publicly listed masternodes" if they're so much more efficient in a monetary investment sense ?

A 1471 DRK shot buywall appeared on Dash/BTC.

Got sold into.

Now another 1471 DRK shot has appeared.

Also sold into. The conifer started its run and sucked the life out of alts once again. (Except ZIL of course which is always skyrocketter)

I've been asking myself that question. They could be in here and everywhere else promoting the sh* out of our great new store of value "tweak" and why that is going to serve to stabilise investment and make us more competitive against our traditional peer assets.

But they voted for it and then went scurrying under the sofa, apparently either too clueless or ashamed to defend it. (Apart from qwizzie who at least made an effort in a couple of posts but even he's now reverted to the "#somethingBigIsComing theme)

Even @TaoOfSatoshi has committed adultery and fallen in love with another coin but he can be excused since he did no small amount of weight lifting during Dash's history. I think the rest are just sitting with their fingers in their ears hoping for relief of the #pumpIscoming variety  

Obviously I don't agree with you and have posted no end of evidence as to why. I'm also still waiting for our "efficiency" in terms of lower POW to show up as improved store of value over other coins which retained their full POW quota.

It also raises the question in my mind of what people with your view are even doing invested in Dash because the only reason to inherit bitcoin's protocol IS to inherit its economic model and POW is central to that. If you don't value POW then all that switches around and becomes a burden rather than an advantage. You can get a whole lot more versatility in terms of utility from a pure proof of stake ICO token that didn't inherit all that "baggage".

The problem is that many people in the Dash decision making process don't understand why it's undervalued.

Dash's utility features only make it competitive as long as we retain a high level of Proof of Work. They are available everywhere else EXCEPT in high POW coins.

So throw away the POW and.....baby.....bathwater.

MDGA and cancel the doom factor of the two posts above by restoring POW without any loss of utility.

Nice rounded out 15-minute Macintosh-D on the Dash/BTC market.

Does it have the oomph to break out on the BTC/USD correction ?

That is the question.

You do realise that the whole point of crypto is that it's unbacked ("trustless") ?

If you have to back it with anything you're better off investing in the "backed" asset itself rather than a token that represents it contractually. Why don't you invest in Bitshares ? That blockchain meets your specifications perfectly.

I've never been able to quite work out what your problem with Dash is or what you're proposing to fix it. Masternodes will always be there, they'll always be profitable, they're needed to support the 2-tier protocol.

What exactly is it you'd propose to change, expressed calmly, and without swearing or otherwise antagonistic rhetoric ?

Pre "something big is coming" announcements are excellent.

Nobody is ever disappointed. Specially as we can see "insiders" pricing them in as we speak....the bow wave !

Many would have agreed with you, but they mostly ended up here.



Be my guest.

You're off to a great start

So here's a little exchange from the bitcoin threads discussing some concern over hashrate "falling behind" price.



The reason for the concern is that mined cryptocurrency has two markets:

 • the "primary" market (where you don't have to purchase your coins from someone that already has them but rather get them straight form the blockchain where mining competitiveness sets the "price")

 • the "secondary" market (where you do)

It's important that these two markets be reasonably balanced, i.e. that the price in one reflects the price in the other. If not they'll get rebalanced by way of capital revaluation of the whole chain.

Now lets reflect on Dash. Here we have half of the entire PRIMARY market effectively mined at zero difficulty. The hashrate don't ever catch up with secondary market prices EVER. If bitcoin worked like this - where everyone with more than $100k worth of BTC in their wallet and ran a full node simply received half the mining supply without any protocol requirement to contribute to upwards difficulty adjustments, what would be the effect on price ? It would collapse it.

And that's what's happening to Dash - relatively speaking at least. We are losing our market rankings alongside fully mined equivalents, we're draining the chain of capital value measured in satoshis and we're chasing away institutional investment because of this glass ceiling. And with Spork 21 we're only doubling down on the "rot".

$100 level firming up.

Dash not capable of drilling below the $100 level anymore.

If you say so.

My recollection was that bitcoin was getting a baptism of fire at that time due to forking for the first time ever and there was massive hedging into alts.

How many capitulations would suit you ? Looks like you've got your 0.00375 incoming and plenty more.

A pump & dump is what happened.

We're now at an even lower ATL against bitcoin.

Apparently so.

At least those that voted for Spork 21. The words "turkeys" and "christmas" spring to mind.



It's a question of a 5-minute change of spec on your hosting control panel at a cost of perhaps and extra 10$ per month.

Mining is not about cost, it's about mediating competitive access to the new supply so that the price reflects scarcity. Masternode supply comes off the chain with a scarcity level of zero and a corresponding price, so the objective should be to reward masternodes as much as possible out of capital gain rather than the capital of the chain.

The problem is exactly the same one that any asset on the planet would have if it paid weekly dividends straight out of its capital value year after year. That capital gets chronically depleted.

With 5000 hungry masternodes to feed now, doing nothing but pocketing the new supply how on earth does anyone expect this coin to do anything other than lose value ?

Any now even faster - with Spork 21.