Dear MNO Community,
Over the first term of the Dash Investment Foundation, the previous round of supervisors made an operational decision that the current round of supervisors feel is ineffective in the way the DIF currently operates. Legally, the DIF supervisors have a fiduciary duty to the network and have operational control over the funds the DIF holds.
In the course of DIF business operations, DIF supervisors are meeting and discussing many sensitive and private topics with potential investment opportunities - topics which are necessary to assess the risks and opportunities that may result from an investment - and are at most times legally bound (e.g., under NDA) to not discuss the information shared.
Many community members express the frustration of being asked to weigh in on DIF investment opportunities through decision proposals without the benefit of full access to information. It is impossible for MNOs to effectively assess opportunities in this manner. We therefore feel that as representatives of the network entrusted with our roles as supervisors, we should act in the best interests of the network as intended.
In order to more streamline the operations within the DIF to be able to offer the network the best service in terms of directing investments toward the best opportunities; the current round of supervisors has taken a unanimous decision to discontinue seeking MNO approval for each individual investment decision. The DIF supervisors will instead exercise their responsibility to make investment decisions on behalf of the network, allowing the MNO community to continue to influence the operations of the DIF via the selection of the supervisors and funding proposals.
Seeking approval for each investment was well-intentioned. While we value decentralization, we also recognize that tasking the MNOs with decision making that could only be effective with information inaccessible to them makes little sense. We believe this new approach will result in better outcomes for the network we represent.
Dash Investment Foundation Board of Supervisors 2020 Q3 Report
An election for Dash Investment Supervisors was completed in July. Darren Tapp and Hytham Abdel-Karim were elected to fill two supervisor roles. A third elected supervisor declined to accept. While the minimum two supervisors required by law was fulfilled, Michael Lewis agreed to continue in his role. Darren was onboarded as the only new DIF supervisor from the election.
Darren was elected chair by Hytham and Michael.
Ryan and Rodrigo were invited to DIF meetings to evaluate how they could contribute. A special meeting was held with only the three sitting supervisors, Darren, Hytham and Michael. At that meeting there was a unanimous vote to appoint Ryan and Rodrigo to fill two additional vacancies. The board is permitted to fill vacancies as required.
In September the DIF BoS met four times. We discussed these topics with the following conclusion.
Dash was established to be peer-to-peer cash. It allows transactions over the internet without a intermediary such as a bank or credit card. The hope is that, those currently undeserved by the banking sector could benefit from the service Dash provides. It is also hoped that those currently served by banks could save on fees by using Dash. By cutting out the middle man, Dash will provide more value to customer and merchant.
Dash is modeled after the original bitcoin.
This last bullet is what established the Dash DAO.
Dash established the oldest operating Decentralized Autonomous Organization, or DAO. That means that decisions can be made in a decentralized way as an organization. Often decisions involve payouts that are to be used to carryout the DAOs decision. Here are some examples of what the DAO is currently funding:
It has been the case that operating as a DAO provides challenges when interacting with traditional businesses. The Dash Investment Foundation was established to support the network’s growth by enabling enforceable legal and financial arrangements between the Dash DAO and traditional businesses.
The Dash Investment Foundation is established as a legal entity. It can do all the things a person can do legally. For example, it can participate in contracts and courts, it has its own bank account.
Generally speaking, the DAO has provided grants to carry out specific projects. These projects are not expected to turn a profit or be self sustaining. Previously, this grant system has incentives that are out-of-whack when funding for profit businesses. It doesn't really make sense to fund a project that will ultimately benefit one or a few owners. However, for profit companies can produce a long lasting impact for a infusion of startup capital. Much of the needed Dash infrastructure, e.g. exchanges, merchants, and point-of-sale soutions, are for profit.
In 2019 the inception document of the DIF was published. The DIF has been working since to establish itself as a thriving part of the Dash ecosystem.