Making changes to Dash's consensus rules is governed in a similar way to Bitcoin and pure PoW currencies. It is an ad hoc process in which some arbitrary signalling criteria are set (i.e. % of miners and masternodes upgrade/signal) and this initiates a lock-in process. A recent (Feb 2019) example of this is the adoption of DIP0003, where the signalling threshold of v0.13.0 was relaxed after one month by a new release (v0.13.1), because the it was proving too difficult to meet the original threshold.
Masternodes have held signalling votes to approve changes to the consensus rules (example, block size increase vote) but the mechanism through which upgrades are adopted relies on consensus among both miners and masternodes.
A key aspect of Dash's governance, deciding which proposals are funded by the Treasury, happens on-chain. Treasury DASH is distributed in monthly superblocks which occur every 16616 blocks or approximately 30.29 days. Masternodes can each vote Yes or No on each proposal. There is a fee of 5
For a proposal to be funded it must satisfy the condition: (YES votes - NO votes) > (Total Number of Masternodes / 10), but as there is a limited amount of DASH available in each superblock the ranking of proposals (by net Yes - No votes) is more important. When the superblock occurs, proposals that satisfy the criteria are paid out in order of their score, once the available DASH has been paid out remaining proposals will not be funded. In a scenario where there is a surplus of DASH in a superblock (the proposals which meet the voting criteria collectively requested less than the available amount), the remaining DASH is burned or not created.
The footprint of a Dash proposal on the blockchain is pretty minimal (short title, wallet address of owner, proposal amount and duration), but this is supported by a number of off-chain sites which present further information.
Dash Central is probably the main site for discussing proposals, and it has tools which support proposal submission and voting by masternodes.
Dash Nexus provides a list of current proposals and some information about how Treasury funds are being spent.
Dash Ninja provides masternode monitoring and analytics.
dashvotetracker used to be the go to resource for proposal voting data, but it has been replaced by Dash Nexus. Dash Nexus does not provide a historical list of proposals, but that information can still be found on dashvotetracker.
Prospective proposal submitters are encouraged to submit a pre-proposal on the Dash Forum, and discuss it on their Discord.
Dashboost is an initiative for funding small-budget proposals, with its own DASH-voting system to choose what gets funded.
- Does the project have its own blockchain or is it a token on another chain? (many questions are not relevant for tokens)
Dash's blockchain mainnet launched in January 2014 as Xcoin, it was soon re-branded to Darkcoin and then again to Dash in early 2015.
- What is the mechanism for ensuring consensus about the state of the blockchain?
Dash's consensus mechanism has a role for Proof of Work miners (HASH) and also Master Nodes (termed "Proof of Service").
- Which entities interact with the blockchain? What role does each entity play? How are the "block producers" selected?
Proof of Work miners compete to find the solution to an arbitrary problem that can only be found by guessing (hashing). Dash uses the X11 hash algorithm. When a PoW miner finds a valid solution they create a block and broadcast it to the network.
Master Nodes are nodes which must meet certain requirements. Master Nodes must have 1)1000 Dash and 2) a server meeting certain specifications.
The masternode system is referred to as Proof of Service (PoSe), since the masternodes provide crucial services to the network. In fact, the entire network is overseen by the masternodes, which have the power to reject improperly formed blocks from miners. If a miner tried to take the entire block reward for themselves or tried to run an old version of the Dash software, the masternode network would orphan that block, and it would not be added to the blockchain.
Masternode paymentss in Dash version 0.13.0 are entirely deterministic and based on a simple list sort algorithm.
InstantSend transactions in Dash version 0.13.0 are secured using a consensus of deterministically selected masternodes. This set of masternodes is informally termed a quorum and must be in a majority agreement, at least six out of ten, for a successful lock of the transaction inputs. Multiple quorums are self-selected for each input in an InstantSend transaction using the mathematical distance between the hash of each input and of the set of masternode funding transactions.
Once a pending new version (v0.13.1) has been adopted widely enough to activate, MN quorums will be selected deterministically through an on-chain mechanism. https://github.com/dashpay/dips/blob/master/dip-0003.md
Chainlocks coming some time: https://blog.dash.org/mitigating-51-attacks-with-llmq-based-chainlocks-7266aa648ec9
PoW Miners make blocks, one MN is selected (deterministically) in each block approve it and insert instantsend and privatesend transactions
- How were/are coins distributed? Was there an ICO? Is there inflation now? Is there a fixed supply?
Dash block rewards are divided between Miners (45%), Masternodes (45%) and a Treasury (10%).
There is a controversy in Dash's history around an "instamine bug" which allowed large quantities of DASH to be mined in the first days of the network - likely mined largely by the developers. There are many relevant sources for this, here are two that represent each "side":
- bitcointalk post from 2015 where the launch was discussed in detail
- "official reponse" to the instamine from Dash Core Group
All parties agree that: much more DASH was mined in the first 48 hours after the chain launched than was intended - 2 million DASH were minted during this time, around 10% of the total supply that will ever be issued.
Docs - https://docs.dash.org/en/stable/
IOHK published a paper about Dash's governance system in 2016
Richard Red has written two articles about aspects of Dash's Treasury governance:
- What is the reference node implementation?
- Any other full node implementations?
No
- How is development funded?
Block reward - Dash Core Group is a corporation which has been funded by Treasury superblocks since September 2015.
Image above taken from this article, looking at the proportion of Treasury DASH going to proposals from Dash Core Group. In the depressed market conditions of 2018, Dash Core Group's share of the overall Treasury budget has increased significantly. For March 2019 Core Group is requesting 60% of the superblock Dash, for core team compensation and business development.
What other software does the entity(ies) which funds the reference node produce?
Dash Core Group has been working on "Dash Evolution" for quite some time. This is planned to be a comprehensive advance in the usability of Dash.
Through the Treasury, a wide range of integrations and other smaller-scale projects have also been funded.
What else do the entities which develop or fund the reference node do? (not software)
This chart shows a categorical breakdown of what Treasury Dash (and in USD equivalent) had been spent on up until January 2018 (from this article). During times when the DASH price was high, significant DASH was spent on marketing activities like advertisements and sponsorships.
Treasury block rewards
Are there any significant projects which are related? For example, is this a fork of another project? Have other projects forked this one?
Dash software was originally forked from Bitcoin Core v0.12
Dash has itself been forked many times, and the masternode concept has been extensively copied. One notable fork of Dash is PIVX, which replaces PoW with PoS.
Dash Core Group, a for-profit entity which is responsible for core development
From March budget proposal:
In March, DCG will have 43 staff associated with the project. The breakdown of the number of staff we have working in each unit will be as follows: Development and Operations: Full-time: 26 Part-time: 6
Admin / business development / marketing / customer service: Full-time: 10 Part-time: 1
* Full-time defined as contracts permitting staff to bill up to 40 hours a week ** Part-time defined as contracts permitting staff to bill less than 40 hours a week
Our run-rate in March will be $250,000 after taking into account voluntary pay reductions, recent resignations and the non-renewal or cancellation of certain contracts.
Dash Core Group is now owned by the masternodes DAO entity.
The Dash DAO Irrevocable Trust : a Trust established in New Zealand which owns all shares in Dash Core Group and has the responsibility to step in and fix things if the masternodes de-fund Dash Core Group.
The initial trust protectors are a subset of the DCG board, as we needed an initial body to establish the trust. This is temporary and will no longer be the case after the first proper election early next year. The initial trust protectors are Philipp Engelhorn, Andy Freer, Fernando Gutierrez, Holger Schinzel, Ryan Taylor, and Robert Wieko.
Dash Labs: Evan Duffield, Dash founder, stepped away from the Core team in early 2017 to pursue research on masternode hardware. This organization is self-funded by Duffield.
Dash Force: The first dash force proposal was funded in January 2017. To start with it was geared towards boosting social media engagement, but since then it has expanded to run the Dash News website.