Proposal “MANDATE-GC-Release-Funds-DB“ (Closed)Back
Title: | Mandate Green Candle to Release Leftover Funds to DashBoost |
Owner: | Pasta |
One-time payment: | 5 DASH (158 USD) |
Completed payments: | no payments occurred yet (1 month remaining) |
Payment start/end: | 2018-08-18 / 2018-09-16 (added on 2018-08-18) |
Final voting deadline: | in passed |
Votes: | 381 Yes / 98 No / 124 Abstain |
Proposal description
Mandate Green Candle to Release Leftover Funds to DashBoost
M A N D A T E
“The Dash Masternode Network mandates that Green Candle release all Leftover Funds to DashBoost to distribute to micro proposal owners via the DashBoost platform.”
Please view the properly formatted document here
Definitions
Leftover Funds; refers to any funds which Green Candle holds or held on behalf of the Dash Network, which are not in current and active escrow, primarily the 330 DASH left over from the GAP Proposal Escrow.
Green Candle; means the company headed by CoinGun and Vancoinman, which has escrowed proposals on behalf of the Dash Network, such as the GAP proposal and General Bytes.
DashBoost; means the platform hosted at DashBoost.org, led by Pasta and TechSquad, that received initial funding via a proposal in January, which distributes funds to micro-proposals that get voted on by the community.
Notes
Green Candle has expressly given the Masternode network the authority to direct these funds. Any funds received from GreenCandle will be exclusively used for funding more proposals, no amount of the Dash received to our ‘Savings Addresses’ will ever be used for anything other than funding proposals.
“Green Candle has expressed that the only measure that can redirect their handling of the 330 Dash is a Masternode vote.” - DashWatch Report (https://dashwatch.org/files/1527973354010.pdf)
“It appears that the majority of the community’s understanding of the Dash Boost proposal was that it would be fully funded by Green Candle excess funds.” - DashWatch Report (https://dashwatch.org/files/1527973354010.pdf)
DashBoost KPI’s
Now more than ever, we have seen high usage from key areas and projects like Venezuela and MyDashWallet. Your ‘YES’ vote and receiving these funds from Green Candle will allow us to continue to re-invest into key community projects, based on community voting.
Initial DashBoost Proposal here
Number of funded proposals: 19
Total funds allocated: 100 DASH
DashBoost Cycle 1 Report here
DashBoost Cycle 2 Report here
DashBoost Cycle 3 Report here
DashBoost Cycle 4 Ongoing
Special thanks to the generous donator who has funded recent DashBoost Cycles.
Thank you to the Masternode Network for your continued support.
M A N D A T E
“The Dash Masternode Network mandates that Green Candle release all Leftover Funds to DashBoost to distribute to micro proposal owners via the DashBoost platform.”
Please view the properly formatted document here
Definitions
Leftover Funds; refers to any funds which Green Candle holds or held on behalf of the Dash Network, which are not in current and active escrow, primarily the 330 DASH left over from the GAP Proposal Escrow.
Green Candle; means the company headed by CoinGun and Vancoinman, which has escrowed proposals on behalf of the Dash Network, such as the GAP proposal and General Bytes.
DashBoost; means the platform hosted at DashBoost.org, led by Pasta and TechSquad, that received initial funding via a proposal in January, which distributes funds to micro-proposals that get voted on by the community.
Notes
Green Candle has expressly given the Masternode network the authority to direct these funds. Any funds received from GreenCandle will be exclusively used for funding more proposals, no amount of the Dash received to our ‘Savings Addresses’ will ever be used for anything other than funding proposals.
“Green Candle has expressed that the only measure that can redirect their handling of the 330 Dash is a Masternode vote.” - DashWatch Report (https://dashwatch.org/files/1527973354010.pdf)
“It appears that the majority of the community’s understanding of the Dash Boost proposal was that it would be fully funded by Green Candle excess funds.” - DashWatch Report (https://dashwatch.org/files/1527973354010.pdf)
DashBoost KPI’s
Now more than ever, we have seen high usage from key areas and projects like Venezuela and MyDashWallet. Your ‘YES’ vote and receiving these funds from Green Candle will allow us to continue to re-invest into key community projects, based on community voting.
Initial DashBoost Proposal here
Number of funded proposals: 19
Total funds allocated: 100 DASH
DashBoost Cycle 1 Report here
DashBoost Cycle 2 Report here
DashBoost Cycle 3 Report here
DashBoost Cycle 4 Ongoing
Special thanks to the generous donator who has funded recent DashBoost Cycles.
Thank you to the Masternode Network for your continued support.
Show full description ...
Discussion: Should we fund this proposal?
Submit comment
No comments so far?
Be the first to start the discussion! |
I urge all MNOs to vote 'YES' and allow these funds to be transferred to DashBoost.
Thanks for your support.
Note. They have stated that their accounting year-end date is 31st of August 2018.
GreenCandle should (if this proposal passes) send the excess funds to DB before the 31st, as it would substantially decrease their tax obligation (DB 330 Dash expense offsets the 330 Dash income).
If this proposal passes, and they continue to hang onto the 330 Dash past the 31st cut off date, then they are planning on declaring the entire excess of 330 Dash as income and taking it as their profit (which is what they originally indicated) and paying tax that otherwise would not have had to be paid.
The effect of this would be that GC end up with a company full of tax losses (once they pay the left overs to Dash Boost), which they can offset against their own future income. So effectively, the Dash network ends up paying the tax on GCs unrelated future earnings.
Companies with tax losses are worth money. If you have a company with 100k in tax losses, you can then bring 100k of income into that company without paying a cent in tax. So if GC are pushing to declare income and pay tax, you now know why.
Good luck Dash Boost team, and I hope Green Candle will stand by their word to pass all 330 in excess funds (less gap associated expenses) to Dash Boost.
Green Candle has told us that they are willing to reimburse Pasta 5 Dash for this proposal.
Green Candle has said that they currently have 29 available Dash from the "failed" Colibit proposal which could be deployed to Dash Boost based on a masternode vote.
Green Candle, however, has stated that they will not release any funds in response to a proposal submitted by any entity other than itself. Therefore, Green Candle has offered to submit a proposal to release the 29 leftover Dash from Colibit to Dash Boost. It's not clear to us exactly how the community would be able to convey a differing consensus on where to reallocate excess funds without a non-Green Candle proposal submission.
Green Candle has additionally offered to pay for a Dash Watch representative to visit Green Candle’s operation and validate their claims as well as the fairness and correctness of their actions and accounting "to remove any shadow of a doubt that [they] have only ever acted in the network's best interest." We have responded that we would consider accepting the offer if the majority of the community desires, however, we felt that it would likely be more appropriate to do so after the expenses and taxable obligations were assessed and paid, provided that there were still questions and doubts remaining.
Please feel free to contact us on Discord @paragon or @DashWatchTeam or via email at team@dashwatch.org if you have any comments or questions.
Left over Treasury Funds should go back to the Treasury and Dash Boost is an excellent way to facilitate this. Dash Boost is getting a lot of attention from proposal owners and the funds will be will distributed there with a community vote.
If Green Candle needs funding for their infrastructure and operations than they should submit a proposal for those funds. Keeping left over funds that were placed in escrow for a specific proposal is bad practice and should not be tolerated by any MN.
This proposal was submitted without any prior discussion with Green Candle Inc. We have previously made it clear to Dash Boost that until our advisors have completed their review and returned our financials, we will not make any commitments with any of the funds that we hold. We have hired the legal and accounting professionals required to work with our governments and they require time to do their due diligence. GC is disappointed and disheartened that Dash Boost has elected to point a finger at us and to put words in our mouth, despite our support, guidance and financial generosity from the onset. We will take this opportunity to clarify some key points:
1) GC has been open and transparent with all of our operations and we have never once refused to provide any information requested. On the contrary, Dash Boost refuses to provide a detailed breakdown of their expenses, and to explain where the 45 Dash given to @Pasta and 15 Dash for contingency were spent from their original proposal.
2) We would like to clarify our definition of excess funds:
Funds in a funding lane will only be deemed “excess” once the project completes and all obligations are satisfied. “Excess” funds in a proposal funding lane may result from:
a) The proposal failing to complete its milestones as specified in the signed MOU (Colibit)
b) The value of Dash rises enough to allow a PO to complete a project without using all the funds allocated to it (Dash Aerosports)
“Left-over” funds as described in this link specifically mean “excess funds” and naturally do not include funds that are part of a taxable obligation from a previous proposal:
https://www.youtube.com/watch?time_continue=116&v=HvptwDjWpMA
3) The Great American Pilgrimage Proposal:
The GAP proposal was the first and only proposal GC provided escrow services for that was denominated in fiat dollars. Due to this fact, GC took on a taxable obligation to perform this duty for the network and has a resulting tax bill to complete this proposal. To clarify, this resulting tax bill has nothing to do with the 330 dash we still hold in the GAP funding lane. It has to do with GC owing the government their portion of the income we took from the network to complete this proposal on its behalf and pay for the production of the GAP Series (As noted by Core when they released their new terms for doing escrows, fiat conversions have significant tax implications on the business providing the escrow service).
4) The GAP proposal is the only proposal that is still under review with our legal and financial advisers. It requires us to finish our year end so we have a complete view of our finances in order to determine how we should proceed, while keeping our taxable obligations to the government to a minimum.
5) There are no excess funds from the GAP proposal. The remaining funds are earmarked for completing our obligations to the Canadian government. We want to reiterate that the remaining funds in the GAP funding lane will be consumed by us to complete our initial obligations for this proposal. That we had the foresight to convert all the required Dash needed to honor our obligations with our partners does not end our obligation from this proposal. Our stance on taxable obligations is the exact same as the Dash Core Group’s. The difference in this situation is that GC did not have to go back to the network to ask for additional funding to cover our taxable obligations. In fact, we anticipated and prepared for this outcome. Dash Core Group stated that “paying taxes is not discretionary.’’ As an incorporated company operating legally inside Canada, we share the same view.
6)DashWatch:
On May 22, 2018, we sent DashWatch confidential documents proving that:
a) GC hired Deloitte - a top level legal/tax specialist - to confirm we are operating properly and within our country's tax and legal structures.
b) All 2000 Dash received by GC for the GAP project are taxable as income, therefore all remaining Dash must be liquidated to pay taxes.
c) As we are required to liquidate all remaining Dash from the GAP project, no Dash will remain in the funding lane for that project leaving no excess Dash from the project.
We were shocked and disappointed that, after fully cooperating with DashWatch, they released the following statements without any supporting evidence:
a) “Dash Boost has expressed that through their public and private conversations with Green Candle, Dash Boost was conclusively led to believe that Green Candle would fund multiple cycles of micro-proposals. Dash Boost believed that they would be given support through the 330 Dash leftover from the Dash GAP proposal.”
We asked DashWatch to give proof of any arrangements specific to the GAP funds and no such evidence have been provided. Not coincidentally, Dash Boost has also been unable to produce any such documentation substantiating their claims.
b) “Because Green Candle is no longer funding the entirety of the Dash Boost proposal, the Dash Boost team is looking for other sources for micro-proposal funding. One such source is directly submitting a proposal to the treasury.”
This statement is false and misleading because GC was never the intended, nor agreed upon, funding source for Dash Boost. In their own proposal they state:
“DashBoost aims to become a self funded entity by collecting a 1 Dash fee on all micro-proposals. The commision will be used to fund the administrative and technical costs associated with maintaining the DashBoost service. “
This statement directly contradicts their assertion that GC was going to privately fund Dash Boost in perpetuity or for any length of time at all.
Finally, it should be noted that the DashWatch website lists the GAP proposal as:
“On scope”, “On Schedule”, “On Budget”, “In communication with the community”, and with a “status completed.”
By all accounts on the DashWatch website, the project was completed as promised, on time, and on budget. We are supremely disappointed at their suggestion that it “…appears we changed our minds.” Our beliefs since we started serving the network have centered around the importance of following the law and leading by example. DashWatch errored in their judgement and sided with an individual who does not grasp the necessity for a business to pay its required share of taxes.
To the MNO’s that are voting yes on this proposal, please consider the implications as it will have long-lasting consequences. There is no legal precedent here to force anyone to do anything. The attempt to try to have MNOs dictate the tax policy of a private corporation is ludicrous, misguided, centralized, and authoritarian - precisely what we are trying to overcome in the crypto space. As MNOs you were willing to accept all of the benefits of the GAP proposal brought to your ecosystem, yet by supporting this proposal you are now considering taking away the funds that have to be allocated to pay taxes on that same project. You have voted to support core paying taxes and now we ask for your support to allow Green Candle to do the same.
To set the precedent that one proposal owner can demand another’s funds by asking the MNOs to vote, without any legal grounds to do so, and regardless of whether the funds have already been allocated to operational planning and financial budgets, would be devastating for any proposal owner who enters into legally binding contracts with the Dash network or other individuals or companies.
The only option we have which allows us to continue to operate legally inside Canada, and to help further decentralize businesses legally allowed to operate within the Dash ecosystem, is to pay the taxes with the funds allocated for them. This is the course we have to take. We urge MNOs to consider the above points and to send the clear message to Proposal owners that they do not need to worry about MNOs stripping them of their funds as long as they deliver on their commitments.
For further background please also see: https://greencandle.io/gc-audit-trail.pdf
That seem wrong or it might just be awkwardly put there. Tax is on profit, not cashflow. If an escrow provider receives $100 from the payer, passes 99$ on to the payee, keeps $1 as a fee. Their profit is $1 not $100 (Let's pretend there are no expenses of escrow for simplicity) .
Or do you mean it's more like GC received $2000 from the dash network, passed $1670 on to GAP, so has $330 effectively as a fee so has to pay tax on the $330?
I have created a part by part response to GC’s explanation, please view that here ( https://docs.google.com/document/d/1QUTCNGUXq3FjdzYPe0weaVwCntoObSwgLWvXKy5K4Tg/edit?usp=sharing )
I understand the GAP proposal was funded 11 months a go and the actual GAP proposal deliverables were not completed until GAP had finishing broadcasting early this year. When the Dash Boost proposal was first funded by the masternode network, they trusted as did we that Green Candle would allocate remaining Green Candle escrow funds to Dash Boost. We have already had many Dash International community proposals on Dash Boost from Venezeula, Africa and even MyDashWallet.org. We would like to continue to serve the network and Dash community. Respectfully, we can not ask the Dash Network for more funding to allocate to future projects until this issue is resolved as Masternode Owners believed Green Candle was going to keep Dash Boost funded.
1. When was the final escrow payment sent to GAP production team?
2. Why wasn't this dealt with in the 2017 tax year?
3. How long have your legal / tax team been working on this now?
4. Once your legal / tax team have finally decided what you owe. Will you agree to release any remaining funds left over from the 330 Dash Gap proposal to Dash Boost as originally intended?
There are additional questions in the responses on that document.
A few key points, if some of you do not view that document above
1) GC is stating they never agreed to fund DashBoost proposal cycles. There are five quotes here ( https://docs.google.com/document/d/1Lm_903M344AqqtOYGAf2FfSKF44NTyk5pkPARRGi1LM/edit?usp=sharing ) which either state, or would lead a reasonable man to believe GC was prepared to fund DashBoost for the foreseeable future.
2) GC is stating that the leftover funds from the GAP proposal must be liquidated in order to pay taxes. What concerns me is that initially these funds were
a) held “in trust for the Dash network” (GC Audit Trail ( https://greencandle.io/gc-audit-trail.pdf ))
b) Then… “The advice we received from Deloitte confirmed that the remaining funds would be taxable in Canada therefore we are reinvesting them in our company” (Email #4 w/ private information redacted ( https://drive.google.com/drive/folders/1VoP2GpI2LqEVmnio-Az4f_9MIpju7WXc ))
c) To the current “All 2000 Dash received by GC for the GAP project are taxable as income, therefore all remaining Dash must be liquidated to pay taxes.” (GC Response on DashCentral)
The Dash Boost micro treasury project cannot move forward until this matter is resolved. If we submitted a new proposal seeking more funding masternode owners would rightly ask about what happened to Green Candle leftovers. We've had no choice but to take the option Green Candle expressed to Dash Watch to reach a resolution. This proposal was not our choice, but yours.
“Green Candle has expressed that the only measure that can redirect their handling of the 330 Dash is a Masternode vote.” - DashWatch Report (https://dashwatch.org/files/1527973354010.pdf)
It is clear from my perspective that Green Candle had promised funds to DashBoost and to the network at large:
“And the big kicker, the funds are going to be all the leftover GreenCandle funds”
[DashBoost] “Puts unused GreenCandle funds into the community..”
“Micro proposals will be funded by surplus funds in the GreenCandle escrow services wallets”
"Remaining funds held in escrow from a proposal lane will be disseminated through micro-donation and micro proposal initiatives"
In addition, Green Candle has clearly stated these funds are the network's funds, and the network's to direct:
"To summarize, Green Candle holds the following in trust for the Dash network: 330.4055768 Dash - remaining funds from GAP"
“Green Candle has expressed that the only measure that can redirect their handling of the 330 Dash is a Masternode vote.”
(Quotes cited https://docs.google.com/document/d/1Lm_903M344AqqtOYGAf2FfSKF44NTyk5pkPARRGi1LM/edit)
In the case there was a proven taxable liability for the whole amount, I would not have submitted this proposal. However, since before March (when the GAP proposal was passed in September 2017) they have not proven that. I see no reason why 11 months after the proposal was funded, they still do not understand or know what the taxes will be.
If there will be leftover funds - it would be unlikely that the required costs to meet obligations would match exactly the amount of funds that happened to be leftover from GAP - can they be transferred to Dash boost via Dash or however possible?
My questions still stand, but I now understand you are able to get much less value for the 330 Dash than you would have if you transferred it at the time of the GAP.
In most situations, I would agree with you. However, GC has promised leftover funds to DashBoost, GC has stated these funds are being held on behalf of the network and has given the masternode network the authority to direct these funds.
Because of these culminating factors, I would say it is up to the network to make this decision for the benefit of the network.
solarguy
solarguy
This measure is now being engaged. Let's keep it on point.