Proposal “DCG-Legal-EndFeb-EndApril“ (Completed)Back

Title:Dash Core Group Legal (Cycle Ending February 27th)
Owner:glennaustin
One-time payment: 266 DASH (57313 USD)
Completed payments: 1 totaling in 266 DASH (0 month remaining)
Payment start/end: 2021-02-12 / 2021-03-13 (added on 2021-02-07)
Votes: 851 Yes / 50 No / 4 Abstain

Proposal description

Dash Core Group February 27th Funding Proposals
DCG is submitting 3 funding proposals for the budget cycle that pays out February 27th:
1) DCG Compensation part one: 2,663 Dash per month (currently in month 2/4)
2) DCG Marketing: 266 Dash per month (currently in month 1/3)
3) DCG Legal: 266 Dash per month (currently in month 1/1)

This Proposal
This proposal requests funding for legal expenses and is cross-posted here.

Dash Core Group is continuing to submit legal proposals to fund hiring outside counsel to work on correcting regulatory perceptions regarding Dash as well as to pay for ongoing company legal expenses.  There have been two specific instances where Dash was named as an anonymity-enhanced cryptocurrency (“AEC”) by the U.S. government: 
  1. Department of Justice Cryptocurrency Enforcement Framework: https://www.justice.gov/archives/ag/page/file/1326061/download
  2. FinCEN NPRM regarding “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets https://public-inspection.federalregister.gov/2020-28437.pdf

Dash Core Group strongly objects to Dash being characterized as an AEC for legal purposes.  The Dash network has only one privacy technique active on its network: non-custodial CoinJoin.  Non-custodial CoinJoin exists on most other public blockchain platforms including more advanced forms on Bitcoin, Bitcoin Cash and Litecoin, among others.  Dash Core Group has submitted its comments to the FinCEN NPRM with the assistance of legal counsel: https://media.dash.org/wp-content/uploads/FinCEN-Unhosted-Wallets-NPR-Response_Dash-Core-Group_Jan-2021.FINAL_.pdf

Dash Core Group has additionally hired outside counsel to assist with engaging with regulators.  Legal counsel, in consultation with Dash Core Group, is currently evaluating all available options to remedy the mischaracterization of Dash as an AEC.

As mentioned in previous legal budget proposals, determining the exact costs for legal projects at the outset is impossible, and determining a likely range for many items is highly variable due to factors outside our control (e.g., whether there are follow-up requests from regulators). This means we can’t assign a specific cost to initiatives we undertake. In the past we have tended to request incremental figures, and supplement the budget as needed as cases develop, and we plan to continue to do that in the future. This avoids the need to request “worst case” funding estimates, which may exceed the final costs of a given engagement.  This proposal is for 1 cycle and next budget cycle we may submit an additional legal proposal or pivot to funding business development depending on our circumstances.  

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

Requested funding is as follows for the budget cycle paying out end of February:
· 261 Dash for legal expenses ($30,400 USD @ $115 per Dash)
·     5 Dash proposal reimbursement
Total: 266 Dash

Note: Any unused budget will be applied toward other legal expenses and any resulting taxes.

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Discussion: Should we fund this proposal?

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0 points,13 days ago
Voting no. You can read more about why here:
https://www.dash.org/forum/threads/09-decentralized-decision-making-proactively-building-dash-decentralization.51334/
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0 points,18 days ago
How much of this request for legal overlaps with whatvere regulatory hurdle the DIF is working on?
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0 points,17 days ago
The DIF facilitates investments into companies that are incorporating Dash into their business models. It doesn't address regulatory issues in any way, or represent the network's interest regarding regulatory issues. So the short answer is, "There is no overlap with the role of the DIF".
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0 points,17 days ago
FYI... the extent to which the DIF incurs legal expenses, those primarily fall into two categories:
1) Legal costs to draft investment agreements between it and the companies in which it invests
2) Legal costs related to its own existence (e.g., Cayman Island filing fees)
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0 points,20 days ago
Yes from me.
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0 points,19 days ago
Thank you for your support.
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