Proposal “DIF_1st_tranche_funding_3months“ (Completed)Back

Title:DIF 1st tranche funding - 3 months
Owner:TheDIF
Monthly amount: 250 DASH (17180 USD)
Completed payments: 3 totaling in 750 DASH (0 month remaining)
Payment start/end: 2019-10-16 / 2020-01-13 (added on 2019-10-11)
Votes: 782 Yes / 189 No / 44 Abstain

Proposal description

What is the purpose of the DIF?

The Dash treasury system can create no more than a maximum amount of Dash at month-long intervals. While this model works for funding many of our needs, it’s often not ideal for interfacing with the traditional business world.

Some months, we're presented with more good opportunities than we can afford to fund. Then during other months, we have more funds available to us than we have good opportunities to put them toward.

The Dash Investment Foundation (DIF) solves this problem by providing the network with a way to save units of Dash over time. Those funds are then ready for use when well-researched, great opportunities knock.

In short, the DIF can act as a “savings account” for the Dash network. We're here to actively research investment opportunities, and when good ones arise, we’ll come to you (the Dash network) with a governance vote/poll to determine whether you’d like us to use your saved funds to pursue said opportunities.

What is the DIF's investment process start-to-finish?

  1. Parties seeking investment approach the DIF (if they were not actively approached by the DIF first) and pitch their opportunity
  2. The DIF does due diligence on the opportunity to assess its potential
  3. If deemed a good opportunity, the DIF submits a decision proposal/poll to the Dash network along with supporting analysis and information
  4. If the network decides in the affirmative, the DIF will use its reserves (and any additional requested funds, if necessary) to execute the investment
Who is running the DIF?

Amanda B. Johnson.............Internal Organization and Inquiry Management

Michael Lewis.......................Investment Analysis and Technical Background

Jan Heinrich Meyer...............PR and Business Networking

Hytham Abdel-Karim............Investment Analysis and Thinking Outside-the-Box

Directors......................Legal & Accounting

To Be Decided.......................Investment Management (upon reaching $300/Dash and/or at least $1mm in reserves)

What will the DIF invest in, and why?

We’ve chosen the following three high-growth industries because they’re ripe to increase global use cases for Dash. Furthermore, it will be advantageous for the Dash network to have influence (via financial partnerships) with key businesses in these industries, because influence often leads to Dash integrations which may not have happened otherwise.

Blockchain:
Anything to do with crypto trading, buying/selling cryptocurrency for fiat/gold, and future DApps on the Dash platform. 

Payments:
Anything to do with crypto payment service providers, payment terminals/points-of-sale systems, loyalty programs, remittance services, and gift cards.

Consumer Tech:
Anything to do with web and mobile services, household and/or consumer electronics, and related fund management.

Why is the DIF asking for funding each month?

Reason #1:

A predictable monthly amount makes sure that Dash’s stakeholders, as well as all proposal owners, can budget ahead of time, rather than getting blindsided by a big DIF ask during a single month. The more predictable that treasury asks are, the better masternode owners/shareowners can do their jobs.

Reason #2:

We must prevent a scenario in which the DIF is forced into a breach of contract by the network. This could happen if the Dash network first agrees to pursue an opportunity (for example, via a multi-month funding proposal specific to a single investment), but then de-funds the agreement before all payments are made. This could happen even if the proposal doesn't lose any votes over time, but is simply surpassed by other projects which come to have more support.

Remember that the Dash network is a fluid body — its stakeholders change month-to-month — and the DIF must not risk breaching legally-binding contracts with outside companies due to the network shifting its priorities, which has happened in the past.

Why two proposals with a 4.5% budget ask for the next three months?

After feedback from the Network, we have decided to split our 9% ask into two proposals of equal size, 4.5% each. The last thing we want to do during the bottom of this bear market is push the network into a binary choice to either fund the DIF at a full 9% at the expense of other valued projects, or not to fund the DIF at all. Making two smaller proposals allows the Network the freedom to vote no funding, part funding, or full funding during every month over the next three months.
 
Funding both DIF proposals would be optimal for the DIF because it will provide enough funds to be able to do something meaningful within the next year or two. We respect, however, that the Network has a difficult task during this period when Dash has recently slipped to near multi-year lows in price. We would be delighted if both proposals received funding, but we would rather that be an act of commission from the Network than of omission on our behalf by not giving you the choice.
 
Also, always remember that any funds allocated to the DIF remain under network control. The supervisors and directors maintain a fiduciary duty to the network.

What's more, 9% is not set in stone in the future. It may decrease or increase over time as the network's resources change, and as voters develop specific desires and expectations of the DIF.

DIF quarterly update:

It has been a busy first quarter since the DIF was established. Below are some highlights and achievements during the last quarter:
 
   -  DIF supervisor team elected by the network.
   -  Weekly meetings between supervisors to assign tasks and manage progress.
   -  Secured DIF related web/social media assets such as domains, social media handles etc.
   -  Developed www.dashinvests.org website with internal skills and resources. This has cost the DIF zero, just a small hosting fee for continued operation and storage of backups. Future maintenance and updates will be done internally at zero cost if we continue to          have the skills internally to do this.
   -  Email, communications and productivity solutions have been set up and configured. Again, this was done by existing internal resources to keep costs to a minimum. We are using GSuite for much of our internal communications/collaboration. This has a cost of            around $6 per month per team member.
   -  Creation of DIF Constitution document (viewable here).
   -  Poll conducted via DashWatch to give the DIF guidance on how to store funds received. The majority preference was to keep all DIF allocated investment funds 100% Dash at this time. We will review this on an annual basis.
   -  The DIF successfully submitted its first funding proposal last cycle and received the full ask of 512 Dash, approximately 9% of the treasury budget available.
   -  Michael Lewis appointed Chair of DIF supervisor meetings, Amanda B Johnson appointed Secretary. Both roles are for a provisional 3-month period and are designed to help with the internal coordination and management of the DIF supervisor Team. These roles        are voluntary and unpaid.
   -  Three DIF supervisors attended the Dash Europe Convention in Zurich last month. After a short introduction from Fernando Gutierrez the supervisors conducted an extensive, unscripted AMA style Q and A session on-stage, and we hope this was a useful and                      constructive exercise to all who participated, and to those who watched via the livestream. We have certainly received lots of valuable feedback which will help shape the DIF going forwards.


What is the DIF going to do next?


  1. We’ve already received inquiries from many businesses within the payments and blockchain industries. We’ve informed these businesses that we’re still in the phase of acquiring seed capital and a mandate from the Dash network, and that we’ll be able to more confidently interact with them after two or three funding cycles.
  2. In the meantime, we’re screening the inquiries we have received (and continue to receive), as well as doing background research on the more promising ones.
  3. We’re developing a PR and communication strategy to maximize our impact.
  4. The Directors are continuing to work through the technicalities of opening bank accounts, and exchange accounts in preparation for when the DIF is instructed by the network to put some of the Dash seed funding to use.
  5. In response to some feedback on Governance we are exploring the possibility of bringing forward the appointment of two new supervisors. The original plan was to replace outgoing supervisors who are Directors when all 6 supervisor positions go up for election in July 2020. We believe that a more sensible approach may be to stagger this process to ensure greater stability and a smooth transition should there be multiple changes in personnel. It makes for better governance of the DIF. The Directors will, of course, remain in their very important roles as Directors of the DIF, but it was always the plan that they would step down as Supervisors once the DIF was up and running properly. They have indicated early support for such a plan, and we will update the network in due course with more details should we decide to take this course of action.
-----We're looking forward to receiving your support and are happy to answer your questions. -----

Show full description ...

Discussion: Should we fund this proposal?

Submit comment
 
2 points,11 months ago
What's an example of a business voters would like to see the Dif invest in?
Reply
5 points,1 year ago
Now watch this SCAM defunding a couple of productive proposals that really would accomplish something useful.
It not even has a use-case for those requested funds. I'm curious to see what those funds will get wasted for.
What an abomination.
Reply
4 points,1 year ago
The DIF is a GIANT scam.
Reply
-7 points,1 year ago
The only scammers in my eyes are those people that still try to refer people to dnale0r's hate thread on Reddit.
Reply
1 point,1 year ago
and those people that create 8 separate DC accounts so they can massively downvote comments.
Reply
-8 points,1 year ago
I want you to remember this acronym: RTWSTY. It stands for "Ryan Taylor's way smarter than you."
Reply
8 points,1 year ago
Oh well, do you measure it with the meter you just pulled outta your ass?
It's not a cleverness contest
Reply
-7 points,1 year ago
Yes from me.
Reply
4 points,1 year ago
Dash Retail (which you seem to hate) is important to me. One of the proposal that actually builds a tool that is needed and necessary.

Nathaniul Luz and the Dash Help Support center are both proposals I would also like to see funded this month.
Reply
-9 points,1 year ago
I don't hate Dash Retail. The fact is we don't have much money to deploy right now. I don't Dash Retail as a necessity (for the DAO).
Reply
-9 points,1 year ago
I don't see* Dash Retail as a necessity...
Reply
2 points,1 year ago
Oops sorry I meant to respond to geert's comment below, that's my bad
Reply
3 points,1 year ago
In general I am always for the DIF, however this month I'm going to have to vote no on both proposals in order to make room in the budget for more urgent funding concerns.
Reply
-7 points,1 year ago
IHMO, Dash is cheap right now. You could argue that that means we cannot afford to fund this proposal, but I would argue that we should set aside Dash now while it is cheap.

Setting aside funds for future use is so important IMHO, that I would like to see a DIF proposal pass every cycle, hell or high water.
Reply
9 points,1 year ago
In general me too, but we risk losing valuable projects if we don't fund them, whereas the DIF can go a month or two without funding.

Also, because they always ask for a percent of the treasury the USD/Dash ratio shouldn't really play a role in this saving decision.

The way I view the question is can this money be more useful being saved or being distributed to projects who need it right now to survive.
Reply
-6 points,1 year ago
Which of the projects in this cycle are dear to your heart?
Reply
6 points,1 year ago
DIF can make a budget proposal WHEN they have a great project they want MNO's to take a vote on. We don't need to pre-load their funding
Reply
-2 points,1 year ago
Would you like to explain how that would work in practice? For example, talk us through how you would go about negotiating a $300k equity deal with a strategic channel partner on behalf of the network.

Thanks

Walter
Reply
0 points,1 year ago
At that amount of 300k usd it would take multi-months of DAO funding at current rates. For smaller amounts of equity it could be funded in 1 month proposal
Reply
-2 points,1 year ago
Ok, so I am being voted down for fostering debate and asking questions in a collaborative/constructive way?

We want to hear some real good arguments against funding the DIF in smaller regular instalments, vs one-off blockbuster proposals that would defund half the DAO. We’ve put forward the arguments for doing so from the outset, so let’s hear the arguments against..

Thanks

Walter
Reply
4 points,1 year ago
Probably we should't fund it either way.
To hell with this entity and the representative and wasteful way it was conceptualized.
You want arguments?
Centralization, bureaucracy, constant money drain for mostly unproductive administration, risk of embezzlement by those directors we know literally nothing about (or by the future manager), defunding and leaving no budget left for many other important proposals without even having a use-case for those funds right now, being planned month by month.
With this entity we are going down a dangerous road, but as the saying goes, the path to hell is paved with good intentions.
Just because you have been voted into this nonsensical DIF board, doesn't automatically imply that the DIF itself must be a good idea by definition.
Reply
-4 points,1 year ago
The treasury has been funding glorified airdrops, incompetent "entrepreneurs," and outright con artists for way too long. We have a chance to change that dynamic with the DIF.
Reply
0 points,1 year ago
Amen to that
Reply
-7 points,1 year ago
Agreed!!
Reply
-6 points,1 year ago
Dash watch et al have there ID and are known members in the Community critizing them is not productive.
Reply
-6 points,1 year ago
You're making a fundamental mistake. This is not "their funding." The DIF is an arm of the DAO. These are funds that we are putting aside to use later. The DAO will have veto power over the use of these funds.
Reply
7 points,1 year ago
concern is: there might not be any great investment deals coming up soon. That the money could just be sitting there for awhile @ the DIF
Reply
9 points,1 year ago
How about wait till we see some great value businesses to invest in 1st? ie. before allocating the funding to the DIF
Reply
1 point,1 year ago
Hi Guys, can I suggest that in future you don't ask for two fundings of the same amount, but one of about double size than the other. So instead of asking 250+250, you could ask 200+300 or 150+350. This would give us MNO, more freedom in deciding how much money to allocate.

Thanks.
Reply
-7 points,1 year ago
Originally, I suggested something like that: 4% and 8%. The problem is that you might get into a situation where half the voters vote up 4% and vote down 8%, and the other half vote up 8% and vote down 4%. In this case, the DIF gets zero even though there is support for at least 4%.

I was actually curious to see how this would play out. Maybe voters supporting 8% would relent towards the end of the voting cycle and switch to supporting 4%, but it's anyone's guess what might happen.

What they are doing is more straightforward and safer, but less exciting.
Reply