Welcome everybody to the first — probably not the last — Dash Open House Yes! [clapping] Thank you for coming

So, I was tasked with explaining to you today, what is cryptocurrency So after I have done so, you will have the much greater privilege of hearing from two others I don’t know if they’ve decided on the order, I’m sure they’ll surprise me Alright, so next after me, you will hear from Ryan Taylor And Ryan Taylor is the oft-called Director of Finance within the Dash Core team

After you hear from Ryan, you will finally hear from Evan Duffield, who is the founder and lead developer of Dash And both of them just so happen to be Phoenix locals, which is also great And once they have finished, the three of us — although I don’t imagine you’ll have many questions for me — the three of us will take questions for something like 15 minutes And that will conclude the formalities of this event space Alright

So, I must give a special thanks to this gentleman here, John, whom I met this evening Because John approached me before the festivities began and began asking me all sorts of questions And he helped me to realize — because in the crypto sphere we can begin to forget that 999% of the world has no idea what any of this stuff is — and John helped to remind me of that So, what is cryptocurrency? First of all I’m not going to call it cryptocurrency because I think that’s a horrible name that was invented by a nerd

And I’m sorry — thanks for the invention, leave the name at home So, more often you’ll hear the term digital currency And that, of course, I am quite confident that you are likely familiar with Because if you have a bank account of any kind, Paypal of any kind, you’re quite used to sending value in a digital manner So then what could this other stuff that we’re talking about possibly be? Well, there are quite a few people — many in this room, many not in this room — who believe that there is a better way to do digital currency

A way that allows one to be in control of what happens to ones’ units of money The base element of it is a ledger, essentially A digital ledger that’s been given the nerd word blockchain — I kind of like that word So this blockchain, this ledger — we’re also familiar with ledgers, and so it just so happens that in the digital currency that we all know and use with banks, that each bank keeps their own ledger, right? You do a transaction in You do a transaction out

They update their own internal ledger So then what’s the difference of what we’re talking about today? What is Dash? Well Dash is an open ledger It’s a shared, common, perfectly auditable ledger And now, we weren’t the first one The first open ledger was called Bitcoin

And Bitcoin is actually how most of the people who work on Dash came into open ledgers to begin with Most of the people who are interested in any of these sorts of fancy blockchain-based digital currencies came into the open ledger that was called Bitcoin Because it was the first It was launched in January of 2009 by a pseudonymous person — maybe pseudonymous — by the name of Satoshi Nakamoto Fast-forward a number of years later, Evan Duffield — who you’ll hear from today — realized, this ledger is so fantastic, but I have got to say I have noticed one thing, and that is that with a perfectly open ledger — that would be something like the end of privacy in finances

There would be no cash equivalent And so Evan thought, well, is there a way to have an open ledger, for it to be perfectly auditable, for the monetary supply to be knowable at every moment of every day, and for every transaction to be provable and recorded, to allow us to know the monetary supply at every moment, at every day, and yet, to also be able to obscure our transactions if we want to? Turns out there is It was born as XCoin for what, 24, 48 hours? They then decided to call it Darkcoin for something like a year And then, when finally — no, I paid a bit of attention when they were called Darkcoin, but I do remember thinking, that’s a silly name But then in early 2015 they wised up and… to this excellent rebranding to Dash, digital cash

And so, that is, at the very basest level what we are able to offer That is, transfers of units — I would call them monetary units but we’re not used as money yet That’s the goal Transfer of units from one account to another on a perfectly open and auditable ledger in a way that you can be private if you want to Now, there are a few other selling points of Dash that I will cover quickly because again, I forget

I forget that people don’t know all of the stuff that there is to know about Dash So how do we compare to other cryptos? Maybe you have seen — there’s a big favorite website, called CoinMarketCapcom, where you can go check the price per coin and the market capitalization of all of the competitors in this space at any old time And so, you will see that Dash is one of many And so, how are we different? Why are there people in this room who are betting — both literally and figuratively — that Dash is a good train to get on in this space

Well, another thing that Evan and Ryan figured out is, in order for this ledger to be even something that any of us would want to use as a money, in real time, with real people, is that the element of cash — privacy is an element of cash but what’s the other element of cash that makes us love it so much? It’s that, when we hand someone cash, we know we’re done with the transaction The transaction is complete There merchant doesn’t have to worry that we’ll do a chargeback on them You know, like I’ve heard happens a lot on Paypal A merchant doesn’t have to worry about, when is this transaction going to clear? Is it two days? When will this money be available to me as liquidity? So the other great thing — other than privacy — about cash, is that it allows us to feel confident in the moment of sale that this is legit, this is secure, we’re done here

And, you might not believe me, if you don’t know a lot about cryptos, but it is true, that there is no other cryptocurrency — I’m sorry, digital currency — in this entire space — that I’m aware of, let me know if I’m wrong — that can do an instant transaction I think the one that is nearest is something like many 15 seconds out but even then, that’s one block found, we’re not going to go into that So allow me to drive home the gravity of that for you if I may Dash is the only digital currency that is able to offer an instant transaction And in nerd-speak that means that the merchant doesn’t need to worry about getting double-spent

If you want to see how a Bitcoin double-spend works I invite you to visit a website called GlassHuntco And they’re a bunch of kind-hearted hackers who have made an online tool available to show people that any digital currency — in this case Bitcoin — is unsuitable for real-world commerce if you can snatch the payment right back from the merchant after you walk out of the door And you can do that with Bitcoin if you use GlassHuntco

So, I’ve talked to you a bit about privacy I’ve talked to you a bit about instant transactions And the final thing that I would like to talk to you about in terms of — first, why am I here talking about Dash today, right? There are a lot of places I could be And actually, the main reason I was attracted to Dash is that, in my point of view, is that this blockchain business is bookkeeping 20

It’s really just very fancy, very technical, kind of glorified bookkeeping And bookkeeping is very important And, if we’re offering bookkeeping, we’re service providers Which means we’re bookkeeping-as-a-service, Money-As-A-Service I don’t know if that will ever get used widely

I would like it if it did Money-As-A-Service So if we’re service providers, certainly we need to be able to function like service providers Certainly we need to be able to come to an agreement on what features our product should have and be able to roll it out in a timely manner And we should be able to pay the people we need to roll these features out in a timely manner

And we should be able to pay all of these computers that are like blip-blip-blip-blipping all around the world right now, keeping the Dash ledger current and secure, right now Certainly all these people should be able to be paid And that’s another major differentiator about Dash, in that, not only do we pay — if you’ve never heard of these words forget I ever said them — but not only do we pay our miners, but we pay our masternodes, and we have a treasury left over that allows us to hire — we hire Ryan, we hire Evan, we hire me, we hire several people in this room There are several people in this room who get paid magic internet money to work on Dash Today

And it’s awesome And it’s created — as I’ve heard other people put it — a positive feedback loop In that the more value we bring to customers, the more Dash we sell The more Dash we sell, the higher the value of a coin And the higher the value of a coin, the greater the purchasing power of our treasury

So that just to me, seemed like a winning formula And so almost a year ago I asked the Dash network for a job, and they said yes You can make Youtube videos for us And I said thanks And that’s still what I’m doing to this day

So if you’ll notice when you sat down, you may have seen a little card on your seat, that is the Youtube show that I produce with my partner Pete It’s called DASH: Detailed We publish every Wednesday and Friday Wednesday’s a sort of news update show, if you care to be kept in the loop about developments in the digital currency Dash And then Friday is an interview show, where I seek to show you the real faces of the real nerds and investors and people who are behind Dash

Because you don’t want to see me all the time, I wouldn’t And so I invite you to do that And with no further ado — please will you stand right where I’m standing for the livestream purposes — here is Ryan Taylor [clapping] Well, I like to walk around quite a lot so this is going to be quite the challenge for me To stand in front of the cameras the whole time

I’d normally be right over there and back over here Well, first of all, before I get into it, thank you all sincerely for coming out Seeing this many people in the room for a simple open house, it truly warms my heart that all the work we put in to our currency is getting such support And we wouldn’t be able to do what we’re doing without all of the investors, users, volunteers that have sacrificed — literally for years — to get to the point that we’re at A point where we are self-sustaining and truly able to employ our workforce and everything

It’s really been an incredible journey It’s a journey no other coin has gone through And I think that’s a segue into what I want to talk about, which is, the inevitability of our situation that we’re in right now And I’ll expand on that idea But, before I do — I’ve been involved with the coin since early 2014

First as just a regular community member Then I moved here for personal reasons Reached out to Evan Started a relationship Started talking about what features and things should be incorporated next and, how do you really gain adoption with users

How do you phase it through to the point that you could continue to grow it And I became more and more involved And last year I quit my job and joined Dash full time for something like $700 a month, in order to see it continue to grow And Dash’s growth has been astounding We’ve had triple-digit growth, every single year

And in our fourth year, we already have triple-digit, nearly quadruple-digit growth In 2017 [clapping] So what is this growth doing for us? We started out this journey solving one problem, which was privacy How do we make transactions more private? Nobody wants their balances published on a ledger for all the world to see Nobody wants their transactions published on a ledger for all the world to see

Some people and organizations do need transparency — if you’re an NGO, a non-profit of some type — you might want your transactions actually visible And so you need to provide both And so we came up with a solution to do that Next, we recognized that Bitcoin transactions take a really long time I don’t know about you, but I don’t like sitting around waiting 60 minutes to see if my transaction went through to make a purchase

No other payment system is like that And so, we went about solving that issue Next, we recognized that there was a governance issue in Bitcoin And gosh, governance is really important We need an explicit means to make decisions on our network before it becomes an issue for us

So we introduced a simple voting mechanism at the time Early 2015 And at that point, then you start to recognize that, well this isn’t sustainable We can’t get people to volunteer their time on this project forever And we can’t get people to donate and have a bunch of coattail riders onboard

And it’s not working for Bitcoin either Every year their donations drop to The Bitcoin Foundation So that’s not a sustainable model, we need something better And so we rolled out the proposal system that allows people — anyone — to put up a proposal that’s going to benefit the network and receive a block reward — a reward — for going and doing that effort And so, we’ve become self-funding

We’re not dependent on donations from interested corporations that want to influence our work We’re here to serve our users And I don’t think that anything else existed like it at the time We really became the first decentralized autonomous organization And so, we have this long history of solving problem after problem

And now we’re laser-focused on usability Right now cryptocurrency is way too hard for most people to use You have to be dedicated to learning how to use it, be willing to overcome your fears when you type that first cryptographic address and hope you didn’t mistype anything — not realizing that you’ve got about a one in a billion chance of having the transaction actually accepted if you mistyped it — but it’s a real barrier This is not going to become a tool that is usable by the masses unless we address this issue And meanwhile we see many others in the space debating about some technical detail — block size — all kinds of stuff that users don’t care about

They’re addressing the wrong things And we’re making sure, that first of all, everyone at Dash rose in the same direction We have a strategy We have an end-vision in mind And we’re laser-focused on executing against that vision

We have investors that are aligned with that vision We have users that are aligned with that vision Even our miners are aligned with that vision We just had about the fastest transition from one version to the next in history — 100 hours is all it took for all of our miners to switch over to the new version Compare that… [clapping] So we have a very strong, cohesive, community that all share a common vision and I think that that allows us to be far more nimble, and move far more quickly, towards a usable cryptocurrency

Now I said at the beginning, a little bit about inevitability Ever since I’ve been involved in this project it has felt to me a lot like fate At every step and every turn and every obstacle that we came up against, the right person showed up and said, hey I’ll volunteer to solve that issue for you Or just when capacity was running out in one of our departments and we didn’t have any money to pay anybody, somebody else would show up Or just as we solved one of the issues that we thought Bitcoin was going to face, they started facing it

And people took a look at what we’d done and said, hey those guys anticipated that And they’ve addressed it already And so it seems like every single turn there’s been this element of fate And if you know me well, you know that fate is not something that I really believe in And so I thought about this a little bit and I thought no, this is inevitability

What I’m feeling is inevitability And there’s a distinction between the two Fate is something that you cannot control, something that happens to you, and it’s directed upon you by some supernatural being But that’s not what’s happening here What’s happening is an inevitable shift in the marketplace for digital currencies

And here’s why And here’s what I settled on — inevitability is basically something that is eventually going to happen It doesn’t say anything about whether you’re in control of that happening I happen to think we are And here are the reasons why

If you look at The Bitcoin Foundation and other donators of developer time, The Bitcoin Foundation got in their most recent IRS 990 filing, somewhere around $396,000 in donations They filed that in August And last year was Dash’s first full year of having a treasury system And that treasury system, on the date that the Dash was paid out, produced about $660,000 in treasury funding So last year, we kicked out the $660,000 — we were able to do a lot with it

We’ve got somewhere around 32 paid employees Part-time and full-time We funded a PR firm We funded a plethora of different marketing activities A Youtube show

All kinds of things Because people are passionate about this project and they’re willing to work very hard for peanuts in order to see our vision happen But here’s what’s happened since: with the market cap growth that we’ve seen this year, we’re kicking out about $600,000 a month At this point [clapping] And it doesn’t stop there

At $600,000 a month so that’s around $7 million a year that we’re kicking out at this point That funds — and we just did two things — started paying our team full market rates, and two, we more than doubled the size of our full-time payroll, and nearly doubled the size of our employee base In a single month We’re hiring for 18 new full-time positions and five part-time ones on top of the 14 full-time positions and I think it’s about 16 or 18 part-time positions that we already have We’re going to be able to do a lot with that

And people aren’t going to have to have side jobs anymore They’re not going to have to work on their side business in order to make ends meet They’re going to be able to dedicate their time to Dash And so, let’s compare that with Bitcoin It’s very hard to figure out how many full-time developers are working on Bitcoin but I saw that Bitcoin Core claims to have somewhere around 17ish, they say, more full-time programmers

There are about three that are working from MIT’s program There’s a handful of others Not only are we able to fund more developers, we’re able to fund more of all the other resources that you need Marketing PR

Finance HR All of the things that keep an organization running And so I believe that we’re moving far-faster than any other digital currency out there And that’s at our current scale

Now let’s assume we keep growing If we produce a product that can appeal to a much broader audience — and I believe it’s many, many times larger than the current set of digital currency users — if we’re able to produce this product and reach a massively larger audience, I would argue that our market cap should be much, much larger than Bitcoin’s But let’s just assume we match it If we were to match Bitcoin’s market cap, the annual production of our treasury — are you ready — $185 million a year How many developers can I hire? More than we need

I joked at the Miami Bitcoin Conference in January, I joked that by the end of the year, we might have a Super Bowl ad And I’m starting to think that’s possible Because if we continue to grow at an exponential rate, a couple million bucks on an ad would not be a big deal to a $185 million budget Now if you assume that we can reach 10x of Bitcoin, because we make cryptocurrency useful, the sky’s the limit We’re talking about over a billion dollars a year in funding that we can use to grow our ecosystem, to encourage adoption, to pay for integrations, and this has been our secret weapon

People keep discounting — oh well they’re too small Oh well, they’ve only been around since — their trading volume is too low I hear all kinds of objections There aren’t any transactions on the blockchain Well, when you start from a small base and you have exponential growth, yes, it starts out small

But small numbers have a tendency to become very big, very quickly And if you look at — we’ve all heard this parable, about the guy who bet a king a grain of rice on the first square of the checkerboard and said, just pay me two on the next one, four on the next one, etc And pretty soon his whole kingdom was five feet deep in rice in order to pay this guy off Exponential growth is a powerful thing Warren Buffet talked about it

I think Einstein used to talk about it It is an incredible thing And here’s what’s happening We’ve had exponential growth — three-digital exponential growth for years And now we’re pretty big

Exponential growth from here is going to be very impactful Very impactful I keep saying, my biggest issue at this point is growth Not money It’s not resources

We have to grow the organization in a smart way We have to grow our ecosystem in a smart way And growing fast, and efficiently, is hard So there will be efficiency losses as we do this We’re probably going to have to throw money at problems

But I think we need to be willing to do that in order to continue the momentum in growth And so, I’ll talk about one more thing and then I’ll be done because I have a feeling I’m going way over my time But I brought a laser pointer because I had a slide And maybe the people in the video won’t be able to see this but I had a basic slide and It had a nice chart on it with a X-axis and a Y-axis Alright? In any case, people talk to me about, Dash just isn’t as secure as the biggest blockchains

This is an objection I hear from business owners Now forget the fact that our trading volume is now larger than the Bitcoin trading volume at the date that they launched their business And forget about the fact that our hashrate is now larger than Bitcoin’s was at the time that they launched their business on Bitcoin That users won’t use it But in any case, they argue that it’s not secure enough because if this axis is how much money is spent on mining and the Y-axis is how much security you get, it’s not a linear curve

Spending twice as much on mining does not get you twice as much security It’s a curve that looks like this — it plateaus up at the top And you can spend more, and more, and more, right? What do you get for it? What economic value does it produce? Well it’s good for mining equipment manufacturers You might try to argue it’s good for miners but it’s not More miners are going to show up and erode away any excess earnings that you have

So what do you do once you reach this plateau? Do you keep spending more? Or do you partition off a part of it? Sorry I’ll do it over here for the video folks You partition off a part of it Use it for something that’s productive And that’s what we’ve done We’ve taken that unproductive portion of mining allocation, and we’ve allocated it towards treasury, we’ve allocated it towards incentivizing masternodes to actually run servers on our network and allow it to grow

And god forbid a portion of the treasury just doesn’t get used Those are coin that are never produced and don’t dilute the coins that are in the hands of our users And so, any of those purposes is a better purpose than continuing to spend And this is what Bitcoin spends on mining: $650 million a year to secure your coffee transaction Maybe a nice piece of jewelry It’s excessive

It has no value And our network, at the end of the day, is simply more efficient It produces more value than the legacy cryptocurrencies And I believe, that in very short order, what you’re going to see, is other cryptocurrencies that mimic our system are going to come to dominate the field I’m saying it right now

All of this equates to one thing Going back to inevitability We have reached the point where Dash is too large It’s still a small fraction of Bitcoin’s size, but it is too large It is now inevitable that our product is going to be better than theirs

It is inevitable When you throw more resources at it and you do it in a more efficient way, and in a more well-rounded way, we don’t just have developers, we have marketers, we have testers, we have every business function that you can imagine And so, putting this all together, I have stopped telling my family and friends that this venture is too risky because I can’t justify that anymore I believe we’ve entered a stage in which the outcome is inevitable And so, that’s basically… Maybe it’s one year

Maybe it’s two years Maybe it even takes us three But it is inevitable that this is going to happen Economics don’t lie It will happen

So with that I’ll pause I’m sure there’ll be questions at the end but we’ll let Evan have some air time here Fantastic turnout It’s just incredible There’s definitely like an energy in the room

I think we found our people It’s been an incredible experience over the last years [Dash Nation!] Tao of Satoshi everyone I also want to thank Ryan, who basically has taken over the [Dash] Core DAO at this point I am acting more as an advisor role to date, and he’s been doing a fantastic job

I’d like — if you guys would be willing to give him a round of applause And Amanda The idea of having a DAO that is a Youtube channel — it’s like those girls who go to ComicCon and then they have the Youtube channels, but you’re like the Dash version of that It was just brilliant Amanda

We owe our success to these people I just had the very small idea of how to do the economic model at the beginning that fixed the Bitcoin issues Like it put — there were holes in their boat, right? And so we’ve went into this exponential growth The company model of running a DAO, a decentralized autonomous organization, it works The company model of running a DAO, a decentralized autonomous organization, it works

We’re the first one And we can replicate that over, and over, and over again So what I want to do, and what the Bitcoin people have done that I think we should replicate — this is a really good idea — is to have more than one implementation other than C++ It’s important because we need different perspectives We inherited code from other people

And it was at a time, in 2008 during the financial collapse, and there was a lot on these people’s minds when they were writing it It’s kind of like spaghetti It’s very difficult to understand I’ve only ran into a few people that can And we have them at Dash Core

Right? But what if we can make a more simplistic, easier-to-understand implementation? In a Pythonic language, like… See we have some people that know, it’s a good idea to have something else like that So oddly enough, I just met two people — one that knows GO — as I was coming out here and one that knows MongoDB, which could be a really cool way of converting Sentinel over so that we can actually fix the sharding and scalability issues of the network Like I figured that out when you were talking just now It came out of you Like there’s a really good idea in there, where we could shard the database off into 256 places using Mongo

And use it as a value key store and from that we can pretty much grow to any size of transactional volume Right? And that is something that could happen now, with a separate implementation And then the Core team, they’ll work lockstep in us We’ll work together as two independent organizations Two DAOs, both with funding from the blockchain

So this is going to be like a locally ran thing here Also it’ll have its own internet presence It’s own Slack So I think that’s how our economy expands You don’t even know what to do with the money if it does grow like that, right? Like you have no idea

We would just start putting it in bank accounts or something Like what do you do? [booing] Exactly No banks No banks So what we need to do is, we need to fund the other parts of the economy

We need branch offices next That could be a DAO And it could run on this GO software or it could run on the third implementation And then maybe we just look at the different countries, figure out what they like, what types of languages they like, put a foundation in those places, and then we start building out a new implementation again And suddenly we have 12 implementations all ran by DAOs on our network

Completely decentralized That takes a lot of money to do And it kind of solves the issue, I think So this is kind of what I’ve been thinking about over the past few months, is how I’m going to be interacting with the project I currently run the foundation as executive director — I’m going to get a special seat on the board as advisor

And I also took my masternodes down I feel like, if I have this much influence I don’t want to be voting for my own ideas through the network It sounds like corruption, right? So I want to be an outside observer and I kind of want to fund a lot of these new thriving companies within the space And then we’ll fund them through the DAO system It could be interesting

[clapping] And so, I don’t think I have that much else to say Thank you all for coming out It’s been an incredible experience And, I’ll turn it back to Amanda [clapping] We’ll just take 15 minutes of Q&A — I think that’s the time we’re allowed in this space

First question in the light blue shirt Hi First of all, I wanted to thank you for what you’ve done for my family for the investment I’ve made in Dash a long time ago Secondly, I would like to ask, we know originally — you know, back years ago, people talked about the unbanked in the world And they talked about how the — I’ll be quick, I’m sorry

What I’m looking for is, what are some altruistic goals and ideas and thoughts of what Dash can do to humanity and to the world? Where is that in your mind and what your thoughts are? More than just helping us pay the bills and put food on the table Yeah So I’ve been thinking about this Ok, so I’ll just repeat the question The question was, what are ones thoughts for altruism for what Dash will do for people? A fantastic question, and one I’ve been pondering myself

I think that when you have a giving perspective in life, that it actually comes back to you more than what you even gave, right? And it just makes sense to structure things like that It’s a type of gifting economy, right? So you can make foundations that run way more efficiently on cryptographic currency and model them after the DAO model And then you give them an open ledger of English legalese recording ledger, where they can record their milestones and their missions, and what they’ve done, in completely transparent ledgers about everything that’s happening And then you structure it on the backend so that the voting is decentralized, collatoralized voting And then that rules out a lot of the corruption side because everything’s provable

And then you can scale up a bunch of those, they should work way better So for me, I think with what we are building with Dash, we’re doing it in a way that intentionally addresses the unbanked And I’ll talk a couple of ways about that without going into too much detail But, the only requirement to be able to hold Dash is access to a device — like a smartphone will do And access to an internet connection

And so, not every country in the world is fully addressable But there are a lot of poor countries that nonetheless meet those two requirements And I’ve talked to people at conferences that are from Haiti or Venezuela or places where inflation is incredibly high, and you talk to people who cash out — they get a paycheck every single day, they cash it out for US dollars, and they literally stuff it under the mattress

Those people shouldn’t have to go through that And they shouldn’t have to live with an incompetent central bank, or an incompetent government So if you give people a choice — a real choice — to use a currency that is stable, generally increasing in value, and basically allows them privacy and freedom from a corrupt government — you allow them to thrive And when you do that, you open up incredible amounts of wealth And it doesn’t need to be a lot to these people to make a huge difference

And so I think that by making Dash usable, by everyday people, you can access folks like that And when you access folks like that I think that it actually removes power from a government who is freely printing money for their own purposes and diluting the wealth of their citizens in order to maintain their power And you take away one funding source from them and that can have even more profound political impact in the world And so I think that digital currencies in general have this power but I think that you need to make it usable to everyday people before you can truly experience that impact We already see it today in Venezuela — there are brokers that allow people to transfer their wealth into Bitcoin and Dash

And people use it because they know their own currency is going to drop in value if they hold that And so there’s already this value that’s being created Now one of the things I’ll talk about specifically with Evolution — we are going to run it on, if you know anything technically on certain protocols and certain ports that the government can’t shut down unless they want to shut down the internet And so it will be unfilterable It will be encrypted

And so, no government is going to make that choice, to shut the internet off to stop Dash So I think that even in corrupt places, we can reach [clapping] Ok Before I take the next question I just want to encourage you all — I realize it has not yet been mentioned — if you’re wondering what we’re meaning when we say “make Digital currency usable” because it currently isn’t — the word that Ryan mentioned, “Evolution” you can see a preview of Dash’s Evolution if you do a keyword search on Youtube for “Evolution Preview” now that I think about it If you look for “Evolution Preview” on DASH: Detailed you’ll be able to get a visual of exactly what it is that we’re talking about

Yes sir Thank you Peter Steinmetz Question actually for Mr Duffield

First a point of clarification, do I understand correctly then, that you have shut down all the masternodes that that you directly or indirectly control? Mm-hmm And then the second question is, you apparently premined or instamined about 1 to 2 million Dash at the beginning, and the argument that it should be worth — I don’t know, how much now, 180 million dollars or something like that? In the past you've explained that well, the community wanted me not… You attributed this to a computer bug, and then you explained that the community wanted you to continue to hold those coins on the basis of a vote At the time that that vote was taken, how much of the voting power from the masternodes did you control? There wasn’t masternodes at that time Yeah, that wasn’t a masternode vote That was pre-masternode days

Oh ok, so you just decided then basically, to just retain those… Can you repeat the question? Yes For the viewers back home, we have just had the token instamine question that happens at every event and we’ll answer it again like we always do I have 256,000 coins to my own possession I’m going to give away 4/5 of them back to the community Oh! And sponsor many DAOs

I want to fund all of them And so it’s not my money I’m keeping it for those companies I’m going to have a slot system, it’s going to be democratic I won’t even pick what’s happening

You know? Yeah I’m just curious But, so 256,000 coins is how much money? Like not — what number did you say? I think people estimated two million Let me address that one So there were two million total coins produced in the first 48 hours

Ok He did not get them all I actually did a pretty interesting analysis because I wanted to do my own due diligence on this issue Sure And I published it

I basically made a bunch of very generous assumptions, like that the first couple hundred blocks were all him and only him [Evan] And that no one else was mining it and that therefore that was probably the capacity that he had to mine I made a bunch of assumptions — I won’t go through the full list Right But there was a very long list of assumptions — everybody on the network was getting rejects at the time — and I came to a number that was very close to that independently

That analysis is published, I should probably put it somewhere but it’s on BitcoinTalk I would really encourage you to do so because… It is published You know, I don’t bring this up to be hostile I’m a serious investor in cryptocurrencies, and when I look into Dash I have serious questions Yeah I wanted to say… Well let me finish

Well you can have it back actually Yeah, you gave your perspective of that and I wanted to give mine At the beginning I had three computers in my closet I was mining CPU computers

I used to run closet computers my whole childhood, right? With air conditioners and stuff At the beginning of this I just had that little bit of computing power I compiled it at the time that it went out and I published the code at time of compilation and I mined Like what is the issue with that? Yeah I’ll say one more thing and close it

The second piece of evidence that I think we can point to is that a lot of people have come forward since that have said, I mined it too Here’s my wallet And have shown screenshots and so on And so, between the evidence on BitcoinTalk of people saying, hey I got my miner up and blah-blah-blah with timestamps and all of that — between the analysis that I did and the fact that all of these other people have come forward and said, no here’s evidence that I was mining 20% of the coins or whatever This issue has — as far as I am concerned — been put to bed many, many times

It will continue to come up And we do need to continue to convince people that Evan is not going to dump 50% of the coins on the market instantly and the price is going to crash and all of that So, it’s unfortunate that it happened It is too late to do anything about it after people started trading it We can’t restart the coin

We do have to live with it And all we can do is be transparent about what happened, be transparent about the situation, how many coins he currently holds, and I think that that’s what we do [clapping] Yes Tommy Economics, what is your question sir? I have a Youtube channel but I'm not on a lot of the videos but I do run that Youtube channel But I would say, I am a fan of the model of Dash to have that 10% go toward funding

That's really smart And a lot of cryptocurrencies could definitely implement something like that What I'm wondering is, have you guys thought about Increasing that to say, 20% because that's twice as much money to use toward funding And there's probably a lot of potential too that's also [unintelligible] Like [unintelligible] marketing

Cryptocurrencies are like 01% of world right now It's 10 million users, there's 7 billion people If you guys could extend that in the world, you guys could go after a much larger share than other cryptocurrencies I see a lot of potential in that, and so I'm wondering

There is nothing magical about the 45%, 45%, 10% split that we picked early on to say, here’s how much goes to mining, here’s how much goes toward masternodes, and here’s how much goes toward treasury I think that if we’re going to change it, it needs to be on the basis of academic research, and mathematical research, and independent research that says that there is a safe level of mining that you have to produce, and what level of security for how large of a transaction that will provide, and be able to publish that before we really start messing around with it Because it’s working We have a huge advantage over everybody else in the space at this time with the current split, even But if you could reallocate some of that 45% that goes towards mining, as long as you do it slowly and are fair to the miners — I don’t want to drastically change it

They’ve made an investment in our ecosystem I would never change it quickly But if you determine that only 10% is needed for mining to be more than secure, then you can reallocate it towards valuable purposes Any of those three valuable purposes that I talked about earlier Either increasing masternode rewards, which would necessarily increase the ROI on a masternode, the return on investment

And would drive masternode demand It could increase the number of masternodes that we have It could drive investment into our ecosystem, etc The second, treasury, towards any other purpose The third is just not letting those coins ever be created

Any of those things produces value And so I think that we should be open-minded about the issue, but should be driven by data and research So I think in the near future, we may fund that research In order to make our coin more efficient Because if we don’t, someone else will optimize a coin to do it better than we do

And guess what? They’ll eventually erode our market and win And so, we have the advantage now if we fund it and we optimize our coin first there’s no catching up to us So I think it’s an important issue and I think we should address it I think it’s a great question I’d like to add one thing

So I’ve been thinking about this for a while, and we’ve tossed around this idea of collateralized mining, which is a really cool way of taking the miners and then use contracts with providers of mining and then you end up having three major pools controlling most of the share of the network And then we can actually control how much each of those pools controls as a group of masternodes So it kind of reverses the logic And then from that, you can reduce the amount that you spend on mining because it’s collateralized at this point To control it you also have to buy units of our currency

And that’s expensive And it gets more expensive as you lower the amount as well And then, we can do research and figure out exactly what those numbers are and how to do it But yeah, we definitely do it I will say that this is the end of this round of questions

As I had said, any and all of you are invited to go to this restaurant afterward And if you would like to converse with many of the people in this room online to get further questions answered, to learn more, and any and all of those things — hey, maybe you’ll even put in a proposal yourself, and you will join our network, and we will employ you, because you are skilled — I invite you to visit the site DashNationcom/chat [clapping] Yep And at that site you will see links to all of our social forums online

So DashNationcom/Chat Thank you everybody [clapping]