Dash Core Group July 1st Funding Proposals
DCG is submitting 2 funding proposals for the July 1st budget cycle:
1) DCG Compensation: proposal posted in May: currently month 2 of 3
2) DCG Legal: $81,000 or 565 Dash
This proposal
This is cross-posted
here
What does this specific proposal fund?
This proposal funds a specific Dash Core Group legal/insurance expense: Directors and Officers insurance.
What is Directors and Officers (D and O) Insurance and why is it important?
Wikipedia offers a great definition of D and O insurance. “... D and O insurance is liability insurance payable to the directors and officers of a company, or to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. Such coverage can extend to defense costs arising out of criminal and regulatory investigations/trials as well; in fact, often civil and criminal actions are brought against directors/officers simultaneously. Intentional illegal acts, however, are typically not covered under D and O policies.”
It is important for any organization to have D and O coverage as it protects the personal assets of directors and officers, as well as their spouses, in the event they are personally sued by employees, vendors, competitors, consumers, regulators, or others. D and O insurance is the financial backing for standard indemnification provisions, which holds officers harmless for losses due to their role in the company. Directors and Officers can be and are sued for a variety of reasons related to their company roles such as alleged breach of duties or violation of local laws anywhere they conduct operations.
This coverage is essential for Dash Core Group, because cryptocurrency is an emerging technology with a great deal of uncertainty regarding expanding and emerging regulation (including expanding definitions of “securities”), liability for software quality, and many other industry-specific risks.
Note that this insurance does not offer protection in cases of intentional illegal acts.
Given the highly uncertain regulatory environment that DCG operates in as well as the litigious environment in the United States, it is important to offer this protection to contributors at DCG in order to make it an attractive workplace. It would be difficult to attract or retain talent without this coverage in place, as the personal risk would be too great, especially in this industry.
DCG is currently working with an insurance broker to conduct a search for the D and O policy that best fits our goals, but the amount requested is approximately what the broker estimates it will cost. The selection process will likely present us with several policies we can choose from at the end of June 2019.
If you have any questions, please direct them to
@glennaustin at dashcentral or DashNexus to ensure we are notified of your request.
Requested funding is as follows for the July 1st budget cycle:
· 565 Dash for legal ($81,000 USD @ $144.00 per Dash)
· 5 Dash proposal reimbursement
Total: 570 Dash
Note: Should any funding remain, we will apply it toward future legal expenses.
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