Proposal “DashCoreGroupBizDevJuneJuly“ (Active)Back

Title:Dash Core Group Business Development June - July
Monthly amount: 247 DASH (37642 USD)
Completed payments: no payments occurred yet (2 month remaining)
Payment start/end: 2021-06-13 / 2021-08-11 (added on 2021-06-10)
Final voting deadline: in 5 days
Votes: 167 Yes / 69 No / 0 Abstain
Will be funded: No. This proposal needs additional 338 Yes votes to become funded.
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Proposal description

Dash Core Group June 28th Funding Proposals

DCG is submitting 3 funding proposals for the budget cycle that pays out June 28th:
1) DCG Compensation: 2,472 Dash per month (currently in month 2/3)
2) DCG Marketing: 247 Dash per month (currently in month 1/2)
3) DCG Business Development: 247 Dash per month (currently in month 1/2)
What is this proposal about?
This proposal funds Dash Core Group’s ongoing business development expenses. The last time funding was requested for the Dash Core Group’s business development budget was in March 2021. With the funding we received during the first two months of the year, we have enough resources to continue funding activities at a similar capacity to that of the recent bear market. This funding request is intended to begin expanding our scope of activities. These activities include:

  • Enter the gambling and E-sports market more aggressively: There is a clear match for Dash and E-Sports/Online Gambling, but due to the higher ticket cost to enter (Anything below 10k is not relevant at all), we had to pass on many of those opportunities in the past. With additional funding, we can promote this use case from a “tertiary” to “primary” expansion opportunity.
  • Maintain higher priority key account management activities with large, strategic partners in Venezuela such as Cryptobuyer (e.g., Pizza Hut, and large supermarket chains) or Church’s Chicken: Now that Dash is integrated into larger, mainstream brands, we want to make sure we can have meaningful quarterly activities with select partners in order to push Dash beyond the initial crypto userbase, and into larger mainstream usage.
  • Run tests on remittance corridors, especially to Venezuela: Operating a remittance company typically entails high compliance and regulatory costs. Budgetary support for remittance opportunities will help remove many of the financial barriers to enabling a remittance channel with Dash to strategic countries and will support further exploration  of the potential of these activities (We are looking at one South American country to Venezuela opportunity, and hope to re-engage with Mexican opportunities). Remittance use cases also serve to supply Dash into Venezuela, which can help Dash succeed there by expanding the user base.

Below we provide our integration count, total annual spend, and an accompanying brief analysis to demonstrate both our performance with “doing more with less”, as well as our spend per integration from 2019 to date.

  • During all of 2019 we launched 53 integrations, with a total spend of 143,890 USD
  • During 2020, we we launched 55 integrations, with a total spend of 147,489 USD
  • In Q1 2021, we announced 5 new integrations, spending a total of 10,655 USD

All in all, our average integration costs the Dash DAO 2,673 USD, and ~75% of the time, that cost is due to a consumer promotion cost, where we enable Dash users to receive some type of Dash incentive. 
Some of these promotions include:

  • Whitebit, Europe: InstantSend and staking campaign: Some fast Dash deposits received a total of 5,000 USD in prizes
  • Tauros Card, Mexico: The first crypto Card in LatAm -Launched in Mexico- Users who selected Dash as their native token, would receive 1% Dash back on their purchases

DCG also provides funding to enable an integration, activities aimed at developing a missing part of the system, or preparing a point of sale system to accept Dash. Examples of these activities include:

  • Burger King, Venezuela (Cryptobuyer partnership) Training clerks on how to accept Dash as a payment method, as well as promotional expenses aimed at letting consumers know Dash is accepted at the store.
  • Ready Raiders (North America, E-Gaming strategy) Held the first Dash contest, where gamers could win prizes in Dash, exposing gamers to the use and low fee capabilities of our network.

In all of our promotions, we share costs with our partners, ensuring the partners have “skin in the game” and limit the amount of Dash that is given away, in order to maintain a low spend rate.

This low cost approach has been effective during the bear market, but has deterred us from entering more complex verticals such as gaming, remittances, and larger key account management activities in Venezuela, where we are currently dealing with world recognized brands such as Pizza Hut, Burger King, and large retailers such as local supermarket chains with dozens of locations.

The largest percentage of the additional funds requested will mainly be used on opportunities we have identified in eSports and iGaming. Previously, we had identified the aforementioned segments as strategic areas for adoption. However, due to our business development budget constraints, we were unable to engage with the segment due to its need for higher-budget marketing. In comparison to a standard payments integration ($2k-$5k USD), an eSports or iGaming partnership can cost an average of $30k USD per partner on the lower end of the spectrum. However, these partnerships can generate substantially larger volumes than typical retail integrations.

We will test our new vertical by taking the following steps. 
  1. We will integrate Dash and - where relevant - InstantSend (some platforms use a third party to confirm transactions for instant payments across all their crypto offering). 
  2. We are simultaneously building an eSports, iGaming landing page to funnel winners of tournaments and betting events. The goal is to provide the option to spend in Dash instead of immediately exchanging Dash following a winning. The Dash provided to the users will be through co-promoted events such as eSports tournaments, or iGaming events held by the platform operators. 
  3. Currently, when a user wins some Dash, they are most likely to withdraw the Dash. The reason being that many will not know that they can spend Dash in their favorite stores. To address this, in the withdrawal page, there will be links to the landing page where various partners will be strategically marketed to the users to spend their Dash.
  4. We will be gathering data through our partners and through our own tools. Following an announcement and any type of promotional event relating to Dash and these partners, we will be analyzing the data and incorporating learning into subsequent joint promotional events. Our partners are also spending a significant sum of funds in these promotions. Partner spend total amounts and proportion to DCG spend, of course vary by partner. 

The results expected are that with every step we place for the user, some users will trickle out of the funnel and exchange their Dash for cash, while there will be a percentage who continue down the funnel in order to spend in Dash and leverage promotional incentives, while simultaneously avoiding exchange fees. The percentage of retained users and the points at which users drop out of the funnel will be measured and improved leveraging the data, with the objective of converting platform users into Dash users. 

In Venezuela, we plan to ramp up our promotional and educational activities including conducting larger activities with high profile merchants that utilize the Megasoft point-of-sale system (which has integrated Dash) and other retail systems we are integrating. To date, besides the two high profile supermarket chains already deployed, as well as all of Pizza Hut, we are in conversations to add at least a dozen large basic goods stores in the country. These will result in hundreds of additional locations and thousands of new cashiers with direct integrations into the PoS’s of those retailers. DCG is aiming to surpass the threshold needed to realize network effects, and become regarded as an expected payments option, and we need to seize the opportunity, and offer Dash at a large number of mainstream retailers to the customers of these stores.

We have also expanded our focus from only places to spend, into projects that allow people to receive or earn Dash through remuneration in Dash as a result of work; remittance transfers; through conducting activities online; and by receiving change in Dash (e.g., customers paying in USD and receiving change in Dash). We are pursuing self sustainable activities, and a few key account activities aimed at exposing Dash the the hundreds of thousand of users in these locations, we are developing projects such as Dasherpay (a payroll solution), that can become sustainable, and do not require DCG providing monetary incentives other than at set up, as we focus on actions that solve a real payment issue to ensure we can build self-sustaining projects.  

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

Requested funding is as follows for the June 28th budget cycle:
· 244.5 Dash for legal expenses ($41,000 USD @ $170 per Dash)
·     2.5 Dash proposal reimbursement
Total: 247 Dash

The exact same funding request applies to the July 27th budget cycle.

Note: Should any funding remain, we will apply it toward future business development expenses and related taxes.

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Discussion: Should we fund this proposal?

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0 points,4 days ago
Yes from me. It would be nice to see more valuable partnerships form throughout 2021.