Proposal “Core-legal-201809“ (Completed)Back

Title:Core Team Legal (September)
Owner:glennaustin
One-time payment: 605 DASH (96021 USD)
Completed payments: 1 totaling in 605 DASH (0 month remaining)
Payment start/end: 2018-08-17 / 2018-09-16 (added on 2018-08-02)
Votes: 909 Yes / 96 No / 2 Abstain

Proposal description

Dash Core Group September 1st Funding Proposals
DCG is submitting 3 funding proposals for the September 1st budget cycle:
1) DCG Compensation: $600,000 (here)
2) DCG Taxes: $210,000 (here)
3) DCG Legal: $125,000 (current proposal)

This is $25,000 less than we initially communicated (https://www.dash.org/forum/threads/...q3-2018-cross-posted-to-allow-comments.39820/) due to the recent price action and the desire to free up a portion of available Dash funding to the community should all 3 DCG proposals pass.

This Proposal
This is a cross-posted from https://www.dash.org/forum/threads/core-team-legal-september.39899/

This proposal funds Dash Core Group’s planned legal expenses. DCG has been pursuing a number of legal initiatives utilizing existing legal budget funding for the benefit of the Dash network. In the immediate future we will require additional funding to complete these projects and provide funding for our regular corporate legal expenses. Current projects include:

1) Seeking a no-action letter from the SEC (in progress), confirming that Dash is not a security
2) Responding to exchange and broker requests for legal opinions on Dash’s SEC security status
3) Formation of a “Dash Ventures” investment vehicle capable of generating returns and distributing gains to the masternode network
4) Investigating potential responses to JFSA recent action around “privacy” coins
5) Finalizing the trust set-up and payment of on-going expenses related to the trust. DCG official summary communication describing the setup can be found at https://www.dash.org/forum/threads/dash-core-group-legal-structure-details.39848/#post-193885
6) Fees related to engaging a tax accountant to assist in filing required federal and state taxes
7) Maintaining Director’s and Officer’s insurance to mitigate the personal risk current officers and directors are exposed to while making daily management decisions for the Dash Network’s benefit

Determining the exact costs for legal projects at the outset is impossible, and determining a likely range for many items is highly variable. For example, the project with the SEC is most determined by the complexity of the SEC’s response to our letter. Total costs could range from $35,000 to $150,000, though we will gain insights into the costs as we proceed and gauge the SEC’s response. We also believe that the strength of our legal argument already presented to the SEC is extremely strong, so this might result in a final cost at the lower end of that range. The effort to create “Dash Ventures” requires greenfield legal work, literally creating an entity without precedent. This is another example where legal discovery along the way can significantly alter the costs. Because of the uncertainty, we plan to request funding associated with our run-rate costs and provide updates on our progress rather than attempt to estimate the final costs upfront. This will prevent DCG from inadvertently drawing more funding from the network than is needed during this time to complete the scope of work.

We last funded the legal budget on July 3rd 2018. That budget is currently being used to support this run-rate including expenses for day-to-day legal work such as drawing up and reviewing vendor, partner, integration, and escrow contracts, creating one-off legal opinions to ensure DCG is in compliance with rules & regulations, etc. It is also supporting the ongoing projects related to Dash Ventures and the SEC no-action letter listed above.

Prior to the July budget cycle, the legal budget was funded in October 2016. These are the deliverables DCG was able to accomplish with those funds:

1) Legal opinion on a number of masternode-related topics (tax treatment, potential legal liability, mixing, etc.) which are provided on the dash.org website
2) Creation of a generic ATM compliance program to encourage the adoption of Dash by ATM operators
3) Formation of Dash Core Group, Inc. and establishing and maintaining filing requirements with the Internal Revenue Service and State of Delaware
4) Creation of the Dash DAO Irrevocable Trust and related trustee services in New Zealand and Switzerland
5) Initial investigation into the formation of a “Dash Ventures” investment vehicle to benefit the network
6) Day-to-day legal expenses including drawing up contracts with vendors, strategic partners, integration contracts, updating and managing corporate documents, etc.
7) Legal work for over 30 escrow contracts
8) Numerous one-off legal opinions necessary to ensure Dash Core Group Inc. is in compliance with rules and regulations
9) Creating and filing provisional patents on key aspects of functionality introduced in the Evolution releases
10) Legal opinion research, letters, and questionnaires associated with inquiries from exchanges on the securities-law status of Dash
11) Privacy policy and other required website legal reviews and content
12) Filing and defending the Dash trademark in various jurisdictions, including resolution of a legal dispute with another entity

If you have any questions, please direct them to @RyanTaylor in this Dash Forum post to ensure we are notified of your request.

Requested funding is as follows for the September 1st budget cycle:
· 600.00 Dash for legal expenses ($125,000 USD @ $208.325 per Dash)
· 5.00 Dash proposal reimbursement
Total: 605.00 Dash

Note: Any unused budget will be applied toward other legal expenses.

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Discussion: Should we fund this proposal?

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-1 point,1 month ago
I don't agree that DCG is not transparent enough, nor that this budget isn't important. I just want to know, can this budget be delayed until next month so we can launch Kuvacash's project?
Reply
1 point,1 month ago
@TanteStefana DCG are currently not answering certain questions we have been asking for a long time. Since we do not know the answers to the questions by definition that is not being transparent. You also have asked questions. Since you have not received answers you don't know the reasons why the DCG are not responding to your request. That is being non transparent.

If you think the DCG are being transparent can you send us the answers the following questions which I've been asking for a long time now.

1. How many part time, full time people work for DCG?
2. How many hours per week are the 70 staff working?
3. How many of the DCG are students and interns?
4. How much are students and interns being paid?
5. What is the breakdown of salaries for each of the division of the DCG. DCG originally said this information would be disclosed if there was 10% vote No in their proposals. However this is an arbitrary rules that DCG set up which suits them. It does not suit an investor such as myself that wants to know what we are getting for our money exactly. I believe that this information should be disclosed anyway, even if 10% of the votes are no.

6. Why have DCG kept private repository coding activity statistics private? I understand the reason given for keeping the code in private repositories but the coding statistics can still be made public so that big investors can see our code is being actively developed at a high rate. Investors use key performance indicators (KPIs) to make investment decisions. Since the rate of development of code is a KPI for a crypto currency and currently DASH is ranked 120th in terms of coding activity (https://cryptomiso.com) can you not see how this lack of transparency could be causing an issue to big time investors?

If you can send the answer to all of the above questions? If you can't then I have to disagree with your point of view.

Big investors look for this type of information so they know what they are investing in.

You can look up the DASH coding activity statistics here: we are currently listed 120th on coding activity in the crypto space well below other cryptos like litecoin etc That is abysmal. We should be at the top with 19 full time programmers and 6 part time developers.

According to https://cryptomiso.com/ that compared different cryptocurrency coins in terms of coding activity at Github DASH is currently ranked as 120th for the past 12 months in terms of code commits.

Check here: https://cryptomiso.com/

On github checking contributors after the date of 18th January 2014 when DASH was forked from Litecoin the code contributions report reached a peak of coding activity Janurary 2015 and then shows a steady decline down to the current date which is a the lowers rate it has been See this graph:

https://github.com/dashpay/dash/graphs/contributors?from=2015-01-19&to=2015-02-18&type=c

If DCG organize the repositories correctly, create a Github profile page and make all private repository coding activity statistics public then we would have a considerably better profile in terms of coding activity which would give big investors more confidence the codes is being actively developed.

I have been asking these questions and so far no replies. If you can't easily give the answers to these questions DCG are not being transparent enough.
Reply
0 points,1 month ago
@Deepblue, I have answered a lot of your questions but due to limited bandwidth, have not been able to answer all of them. Would you like to have a video call to discuss some of the topics?
Reply
0 points,1 month ago
@glennaustin, Thank you for your reply. The goal of MNOs asking questions on the forums and here at DASH Central is for the core team to provide these answers publicly so that investors can learn if DASH is something worth investing in. The greater the transparency the greater the confidence an investor is likely to have to invest. In addition when DCG responses are public it gives the MNOs an opportunity to respond and give their feedback. My concern is that if the call is only with myself then it will be only me that will benefit.

Therefore I would like to suggest that DASH Watch be present on our call so that they can produce a DASH Watch report based on the interview and also ensure other community’s outstanding questions are answered. DashWatch can then produce DW funding reports which then become a valuable document for external investors and for the DASH community to refer to.

The DashWatch reports take the DASH watch team a great deal of time and energy to produce and provide very detailed information and therefore transparency on the DASH funded Projects. They also save the proposal owners time from having to continuously answer questions which can be covered in the DASH watch report. The DASH Watch team even produce the report for you - saving you time!

I would also like this opportunity to highlight the importance of the DASH watch reports in helping to attract investors. As far as I am aware no PR has been done to raise awareness of the DashWatch reports. This is a huge opportunity for DASH to attract investors. No other crypto currency is doing these types of detailed reports. Why are we not broadcasting these efforts to mainstream media with PR highlighting the DASH watch reports and the DASH watch website? This is an absolute *goldmine* of information that investors would find valuable. The values of these reports is truly incalculable for an intelligent investor that will be making decisions based on information that can be found in these reports.

I will be speaking with DASH Watch later today to see if they are interested in producing a DashWatch report on the core proposals. Could you confirmation if you would be willing for DASH Watch to produce a DashWatch report from our call? The way I see it is that DCG is requesting funds from the network in the same way any other funding proposal and should not object to such a request since the network has appointed DashWatch to do reports on all big funded projects - which includes DCG. In addition the DashWatch report will save DCG a lot of time answering questions and is a valuable document for investors. I would be grateful if you could confirm that you are willing for DashWatch to produce a funding report and be present on our call?
Reply
0 points,1 month ago
@glennaustin I have just got of the phone with Alex at DashWatch. We discussed the outstanding questions. He informed me that he lives in Phoenix and would be prepared to visit you at skysong, if you prefer this over a conference call? Could you confirm what you prefer.
Reply
0 points,1 month ago
We are working with a law firm on the SEC letter and incur costs related to it on a monthly basis. Starting, then stopping and then starting the process can be done but would be disruptive. In addition, we have normal run-rate legal fees that the funds from this proposal are funding. Given the state of the budget, we are really are identifying top priorities that need immediate funding and asking for those funds; it would be difficult to push the funding need to the next month.
Reply
1 point,1 month ago
Your work is not transperent enough.
Deadlines
Timelines
Deliverables
Auditing of remote workers work (Please see comments from DeepBlue)
Voted No
Reply
0 points,1 month ago
@Musaka: deadlines, timelines and deliverables for what specific initiatives?
Reply
1 point,1 month ago
Why doesn't anyone at core ever comment on these comments? There are some questions here, sure some are just accusations, which are ignored, but how important is it that Core receive these funds this month? Can they be broken into smaller amounts for multi month payout? Yes, it would be great to have the SEC give us a green light letter, but honestly, does it have to be this month? I feel Kuvacash is more important to Dash than an SEC letter.
Reply
0 points,1 month ago
We are working with a law firm on the SEC letter and incur costs related to it on a monthly basis. Starting, then stopping and then starting the process can be done but would be disruptive. In addition, we have normal run-rate legal fees that the funds from this proposal are funding. Given the state of the budget, we are really are identifying top priorities that need immediate funding and asking for those funds; it would be difficult to push the funding need to the next month.
Reply
1 point,2 months ago
You wasted the shit out of treasury funds the last year so now you have to continue giving projects more treasury funds.
I want to encourage all MNO's to log in every month to deny all wasteful POS projects. I'd rather burn the treasury funds than continue to donate it to projects that spend it out on exchanges for all their expenses.
Tired of all the hype without any continued performance.
Is this just a bunch of whales giving Dash as welfare to their buddies?
Reply
1 point,2 months ago
If this proposal fails and funds get diverted from the less productive areas of CDG to pay these tax bills, then won't that make CDG more lean and efficient?
Reply
0 points,2 months ago
legal bills. not tax bills. sorry.
Reply
1 point,2 months ago
You have my support
Reply
1 point,2 months ago
voting YES. We have Dash "bricks and mortar" here being established.
Reply
1 point,2 months ago
We really need to grow and give some relief to some groups here. Kuvacash is requesting more than you are leaving behind. Can you live this month without this proposal?
Reply
1 point,2 months ago
Great proposal, beautifully explained. I especially appreciate list of DCG proposals at the beginning and lists of current/previous actions. Thanks!
Reply
0 points,2 months ago
This proposal may single-handedly accomplish more and gain more ground than thousands of Dash spent on marketing up to this point. Every one of its stated goals is essential to paving the way for current and future growth and development of the Dash Ecosystem and opening all sorts of doors and creating new possibilities. Nearly all of the outcomes related to this proposal will likely have a lasting impact on the future of where the network is headed, so this seems like a uniquely critical proposal.
Reply
0 points,2 months ago
This is really great stuff, very exciting.
Reply