Proposal “DVE_project“ (Closed)Back

Title:Dash Vending Expansion
Owner:PerunX
One-time payment: 95 DASH (10403 USD)
Completed payments: no payments occurred yet (1 month remaining)
Payment start/end: 2018-09-17 / 2018-10-17 (added on 2018-09-11)
Final voting deadline: in passed
Votes: 227 Yes / 189 No / 62 Abstain

Proposal description

1.General Project Information


Project Name: Dash Vending Expansion – module which gives possibility to pay via dash on existing vending machine/ Proof of concept stage 
TDLR versionOur team wants to make a embedded device for vending machines that will add support for Dash payments. This proposal is for phase 1 out of 3, which deals with technical analysis, concept validation and feasibility study.
LinksPresentation
Proposal in word 
Preproposal discussion
Project description and statement: Cryptocurrency has incited a global rush of exciting new advancements, most notably across the payment industry.
The only problem is there is almost noway for people to spend it
That project is going to provide such possibility in vending machine industry.
As a result of the project will be created easy plug and play device that will allow after installation to add dash payment option to existing vending machine.
Module is interact with vending machine as a bill acceptor and gives possibility to pay via Dash cryptocurrency

Project statement: Daily life with Dash is easy   

Dear MNO. We appreciate your negative or positive  feedback.  Please in addition to voting, leave the comment to the proposal, It will allow us to improve. Thanks

2.Project Scope Statement
2.1. Project Purpose / Business Justification 
·        According to a 2014 Rasmussen survey, half of Americans (49%) say they have gone an entire week without spending cash. It’s not surprising, then, that 57% of
consumers in survey pinpointed lack of cash/change on-hand as a major barrier to using vending machines.
·        Cryptousers are struggling to use it for more everyday transactions.
·        About 30% of total vending machine sales come from schools
 
We therefore have an opportunity to provide possibility to pay via Dash while using Vending Machines  and expansion to vending “real  retail” will bring great promo effect for DASH
cryptocurrency indeed

2.2. Objectives (in business terms) 
Provide possibility to use dash while buying from vending machine. 

The 3 years target is to have 0,5% of sales via Dash in selected region.
 Now e-payment tech offers a way for people touse their crypto ineveryday transactions, and it’s changing the entire retail landscape
Existing trends in retail industry shows significant growth of using e-wallets. Expected that 46% of global e-commerce payments will be paid via e-Wallet by 2021. The installed base of connected vending machines worldwide will reach 3.6 million by 2020 from 1,51m units in 2015
From other hands vending operating companies are trying to monetize as much as possible already made investments.

The project’s result will allow them to do low cost upgrade and provide additional alternative options to the end users 

There are following values for different type of stakeholders:
DASH community
  • Growth of DASH popularity
  • Additional possibility to use Dash not only by enthusiast but a digital addicted people
  • Increase DASH stability via increasing number of transaction for buying real goods
Customers
  • New way of using cryptocurrencies in their daily life
  • Worldwide usage of Dash
Vending operators
  • seamless integration to existing non-intellectual vending machines without software upgrade
  • alternative payment options and additional revenue stream
  • Low cost solution
  • PR
Potential Investors/Potential Crypto Payments Gateways Providers: 
  •         Providing Financial and Investment Solutions for CryptoVending
  •         Investing opportunities for growing industry
3. Key Deliverables 
1.       1-st phase – is Concept Validation
  ·        Confirmed technical design
  ·        Working prototype of the solution 
  ·        SW and technical design is published to community
  ·        Decision Go/not Go for following phase
 
2.       Phase2 (Pilot). SW enhancement and rollout in pilot region
  ·        Rollout in one specific area
  ·        Integration with payment gateways 
  ·        Sales strategy
  ·        Legal analyses
  ·        GotoMarket Strategy
  ·        Decision Go/not Go for following phase
 
3.       Phase3. Operations andglobal rollout
  ·        Massive rollout and operations in selected region. 
  ·        Formed country leaders team

4. Scope

  This project provide possibility to use Dash for buying goods via vending machine. Mobile wallet is not included in scope
  Scope of current proposal is limited to Phase1.  Following phase will depends on results of Phase1

5. Project Milestones and Schedule
  ·        POC funding – 10/2018
  ·        Technical development –01/2019
  ·        Preparation for 2-nd phase –01/2019
  ·        Phase 2 funding – 02/2019
  ·        SW enhancement – 04/2019
  ·        HW industrial design –05/2019
  ·        Rollout in specific region06/2019-08/2019
  ·        Go To Market strategy 08/2019
  ·        Results validation and Decision on global rollout – 08/2019
  ·        Global rollout 08/2019+

6. Success Criteria
1.       Phase 1 – Concept Validation
  ·        Designed solution is working in real vending machine
  ·        No significant gap in customer journey
  ·        HW cost of the designed solution is less than 80USD
 
2.       Phase 2 (Pilot). Success criteria will be clarified after phase1. Preliminary success criteria 
  ·        Rollout in one specific area is done
  ·        No significant issue from vendor operators
  ·        0,05-0.1% of transaction are done via Dash 
 
3.      Phase 3. Operations and global rollout
  ·        self-sufficiency 
  ·        Monetizing approach is not selling of devices, but to have fees from transactions
  ·        0,5% of transaction are done via Dash 
  ·        Created leaders team who are managing project in different countries

7.Major Known Risks(including significant Assumptions) 
Risk 
 
Risk Rating (Hi, Med, Lo)
 
Potential ROI for most countries is too bad (2% payment processing  commission, 100$ average cost of solution, risk of HW destroy and no diligence)
 
Hi
 
DASH exchange rate   volatility
 
Low
 
Hacks, fraud, scam
 
Med
 

Constraints
 
  1.Hard work for implementation process at early stage :)
  2.Big quantity of various vending solutions, vendors, fiat currencies with exchange rate volatility and unpredictable inflation rates
  3. Language barriers
  4. Industry players vision changes so slowly

8.Communication Strategy 
  Steerco meeting  
     Responsible:    PM  
     Participants:   Sponsor (Dash community), PM, Team members(optional)  
     Channel:       Forum, Slack  
     Purpose:   To review progress; scope management
     Frequency;   monthly

  Operational meeting  
     Responsible:    PM  
     Participants:   PM,Team members
     Channel:   Skype, Slack  
     Purpose:   Track progress; keep team informed about main decisions  
     Frequency;   weekly
 
  Status reports  
     Responsible:    PM  
     Participants:   Sponsor (Dash community), PM,Team members  
     Channel:   Dash forum  
     Purpose:   keep community informed about main decisions and progress  
     Frequency;   biweekly

9. Reviews Planned 
  Plan will be reviewed on monthly basis. 

10.  Notes

As an option could be considered full-fledged commercial project. All potential investors are welcome.

11.Project Team contacts

  Project Manager

     Konstantin Koltsov      +380672206813   Kostiantyn.koltsov@gmail.com
  Team Members   
     Yuriy Kruglov           +380955321461        Hodkonem36@gmail.com
     Dionis Papavramidis   +14153905980     dionis.papavramidis@gmail.com
      Konstantin Mosin                   prom.electronics@gmail.com

Show full description ...

Discussion: Should we fund this proposal?

Submit comment
 
1 point,1 month ago
YES vote to this. Utility....more gateways to Dash. Not passing this time around but keep it up.
Reply
1 point,1 month ago
This might deserve a chance.
Reply
0 points,1 month ago
@ichigo13 thanks a lot for support!
Reply
1 point,1 month ago
Utility is key people. I'm voting yes.
Reply
0 points,1 month ago
@3d1409ae thanks a lot for support!
Reply
1 point,2 months ago
Seems expensive at this stage. I like the idea, however. I will vote "Yes", but that will change if the budget is tight.
Reply
0 points,2 months ago
agree
will do the same for now and keep an eye on general budgets
Reply
0 points,2 months ago
@tungfa budget details are available upon link https://docs.google.com/spreadsheets/d/1nbHCxu6T2iU__6nZyEJ2f0jYVfQlUDiiDheOY1eZrjw/edit?usp=sharing . If any additional comments are needed let me know. thanks
Reply
1 point,2 months ago
Hi @Acedian. The budget calculation is available via link - https://docs.google.com/spreadsheets/d/1nbHCxu6T2iU__6nZyEJ2f0jYVfQlUDiiDheOY1eZrjw/edit?usp=sharing. The main parts are cost of vending machine, cost of team. From my point of view the budget is tight enough. Also there will be available budget reporting from my side during project execution.
Reply
-1 point,2 months ago
Don't see a demand for this. Voting no
Reply
1 point,2 months ago
've just remembered one quote - "If I had asked people what they wanted, they would have said faster horses.” Henry Ford
Reply
0 points,2 months ago
@Zwolf. Yes, there is no demand right now.
Such projects are creating demand step by step.
Reply
6 points,2 months ago
It seems like the technology here is the smallest hurdle to overcome. How many vending operators do you have interested in such a service? If the idea is to build it first and then try to build it out, I am highly skeptical
Reply
2 points,2 months ago
Hi @mikenewhouse. Thanks for feedback.
That was my exact question to team once we've started our internal discussion about the project.
You are absolutely right that technology is only one small pieces. Currently not so many vending operators are interested, as they don't have a demand for it. We should create it.
But the outcome of our discussion was that we shouldn't treat that project as totaly separate from other activities of community. In isolation that project is nothing. But that project is a part of ecosystem, where the end user could use crypto in different ways in daily life. And step by step we will get commercial benefits from this and similar projects
Note, here we are working in blue ocean concept, in case of delay, the other alternatives solutions will appear.
Reply
3 points,2 months ago
Hi PerunX, I appreciate the candor. I think the service personally would be valuable and I would like to see it come to fruition. That being said, I will be voting no because I think the business model is backwards. There needs to be demand first and that demand from the operators (perhaps supplemented by the DAO) should be what finances such a project. In person POS systems in stores can potentially get-away without the perceived demand if the store operator had an incentive to push the cryptocurrency agenda and was a charismatic salesman. I think it would be hard for a lifeless machine to do provide the same education/excitement. That being said, another avenue for the vending machine market could perhaps be as a platform for running crypto ads.

Alternatively, once demand does starts to grow, it would be interesting to set this up as an open-source project of some sort.

I feel it is too early. Perhaps take the time to build the prototype and go into partnership with a vending machine operator or consortium. I think at that point it would be a much more compelling ask for the DAO to finance.

I encourage you to keep tackling it but perhaps with a different strategy.
Reply
1 point,2 months ago
HI @mikenewhouse. I understood your point and thank for really meanfull and valuable feedback.
But of course i couldn't fully agree on it.
The concept of our project is "Daily life with Dash is easy".
That means that the main goal is not to promote crypto itself, but provide alternative options to pay via dash. Customer will select what kind of payment he will choice, but for that he would need
1. to know about crypto and have a dash (there are a lot of funded activities)
2. to have posibility to do it
User who know crypto and have dash, and who's main target is not playing on exchange, in case he will be very limited in usage, he would choice alternative crypto or ewallet, which suit his typical daily use cases.
Of course Dash has a lot of benefits, and has good governance system, that's why i believe that we shouldn't focus only on demand creation, but go forward simultaneously in several streams (Dash core functionality evolution, Promotion and creation centers of expertise, Technical solutions for different usage areas), otherwise we will miss oportunity.
Note - our project is realy small part of other similar technical activities which we should have for success of Dash.
But once real users will see Dash sticker on vending machines, it will be additional incentive to use the Dash, even without salesman.
Reply
1 point,2 months ago
Something to consider here, fellow MNOs as per their pre-proposal, is that the particular kinds of machines with which they're wanting to work (NV-9, NV-10, NV-200) and in which they want to implement Dash capabilities are used around the world, not just in their initial pilot region. So if successful, their projects should be easy to implement in other locales, at least where technical issues are concerned.
Reply
1 point,2 months ago
@Arthyron thanks for additional clarification!!!
Reply
2 points,2 months ago
What are the costs going forward for phase 2 & 3? Without knowing we cant really go on a guess
Reply
0 points,2 months ago
Hi @Realmrhack. To be honest we don't have such calculation now. It's really hard to predict, as it depend on lot of factors, region, type of cooperation with business etc . Our approach is do it step by step. And on each stage analyze efficiency and make go/not go decisions. It will be more precise than i would put a lot of assumtions on current stage
Reply
2 points,2 months ago
Here is a link to the Presentation for those that don't feel like going to search for it. https://drive.google.com/file/d/1xu1RenSGDikrNAmGwY90lGMKJfVuXBYu/view

While I like the idea in general, issues with formatting in this proposal are definitively off-putting, and make me wonder if language barriers will be a problem. The team seems to be from Eastern Europe.

TDLR version. This team wants to make a embedded device for vending machines that will add support for Dash payments. This proposal is for phase 1 out of 3, which deals with technical analysis, concept validation and feasibility study.

Sorry if I got anything wrong.
Reply
0 points,2 months ago
@quantumexplorer thanks for cool TDLR version !!!
I'll corrected formatting shortly and hope that language will be not a barrier.
Team is from Eastern Europe. One of us currently works at IBM in USA.
Reply