#3 - Virtual Corporation

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Hello, My name is Evan Duffield

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In this video, we're going to be talking about

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Dash's Virtual Corporation.

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Which is one of the most innovative things

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that we've done. Also one of the most exciting things

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This is because we take all of the efficiencies

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from a centralized corporation

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and mix them with all of the efficiencies from a

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Decentralized Autonomous Corporation

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and combined together, we make something that is nearly completely efficient.

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So how do we do that exactly?

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Well, to start out, we need to talk about boring old corporations.

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And these are the types of corporations that everyones really used to dealing with

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on a day to day basis, such as Target, Paypal, Ebay.

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And these are what the world economy is built on

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So they were quite efficient and innovative for a very, very long time.

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But, everything about them is centralized from start to finish.

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They get VC (venture capital) that's centralized, they spend it using centralized methodology,

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Then they develop revenue streams that go through centralized banks,

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from centralized people, to centralized people, and then they spend it

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using a management and decision making system that is also centralized in nature.

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But, it's super efficient, so how do we get all the efficiency of a system like that

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and then combine it with a Decentralized, Autonomous Corporation and get the

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total efficiency of both systems together?

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Well, in a decentralized system, we really do need some form of governance,

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management, funding, infrastructure that's paid for... we need

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salaried staff, we need contractors, we need to pay for legal expenses,

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and all sorts of things.

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And to do this in a way that remains decentralized is really the issue.

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And so, what we decided that needs to be done

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and that we created is; First you start out with a leader,

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and thats the person that organizes this Virtual Corporation.

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And then, after that person has the vision for the project, and has gotten

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some interested people to work with him,

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Then they start laying down the foundation for how the company

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actually functions.

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So in our case, we have small teams all around the world.

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We have a PR Team, we have a Marketing Team,

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We have a Software Development Team and a Project Management Team.

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And all of this is done using our reoccurring revenue stream.

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And our reoccurring revenue stream is basically the seed funding for the Virtual Corporation.

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And that's Automated, Trustless and Decentralized.

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This makes us the very first working

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Decentralized, Autonomous, Corporation in history,

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because we have every component of the company automated from start to finish,

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and it's all modeled economically with incentives all around.

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So every participant is actually motivated in some way.

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Our Virtual Corporation is also growth oriented.

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This means that we take money from the network itself

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in a trustless decentralized way and then we try to spend it to earn

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ROI (Rate of Income) for the network itself.

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Alternatively, a centralized corporation

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would take money from it's investors and then

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it would try to spend it to create revenue streams

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which then it could use to hire employees and build locations and

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get infrastructure and things like that.

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So we work kind of similarly, but in a completely decentralized way.

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So why would you want to work for our Virtual Corporation?

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For one thing, we've solved all of the problems within Cryptographic Currency

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And we were the ones that did it.

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And so this is a historic event,

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and you can work for a company that's like no other.

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And, after all is said and done, I mean, we are making some of the most

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amazing technology that exists currently. So,

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Who wouldn't want to work for us?

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Being growth oriented by design is also one of the most important

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aspects of being a centralized corporation.

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And so, it's one of the most important aspects of being a Virtual Corporation also.

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We want to earn an ROI (rate of income) for the network.

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And, the reason for this is that we have a given amount of Dash

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every month that we can spend.

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And so, if we spend it in the smartest possible way

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We'll have more budget money every month

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which leads us to being able to hire more developers,

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or more employees to do marketing, PR and Public Awareness

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or better salaries and better opportunities in general

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because some opportunities cost more money

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and if we have more money, we can utilize more of the money to do

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these things that we want to do.

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.... which then even draws in more money and creates more ROI (rate of income)

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so we can actually grow this company really, really fast.

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Everyone wins who is involved. This is a virtuous cycle.

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All of our investors win because the price appreciation benefits them as well.

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The employees win because they're working on some of the coolest technology

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that's ever existed and all of this

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works to decentralize the project further. As the project

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gets bigger, we can get more people and

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we can get better technology, etc

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And then every aspect of this stimulates innovation.

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Innovation is stimulated because

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as we create new technology, we might end up creating a technology to

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draw in a specific segment of a specific country into the currency.

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And when we do that, that money comes in which causes price appreciation,

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and then that expands our budget even further

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and again, the virtuous cycle just continues.

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What about founding the Virtual Corporation early on?

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In centralized corporations, they have investors and they have founders, and

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those people are the ones that get the original issuance of the shares.

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And the founders are incentivized because they essentially get the shares

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for free often times. And so they want to work on it to make the shares

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more valuable. In a Virtual Corporation, however, it's really murkey

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because the currency is also the shares - is also a commodity.

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and so they serve multiple purposes throughout the ecosystem.

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And what we need to do is figure out, how do you make one of these

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entities in a stable way to incentivize all of the parties all around?

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In the Bitcoin project, it was relatively unknown for the first couple of years.

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and so the founders collected a lot of coins, which we'll call their shares,

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because that's what's incentivizing them to work on the project.

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And, in the rest of crypto, this is actually look at as a bad thing now.

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With Dash, we made an accidental discovery in the very beginning.

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We had some kind of similar incident in the beginning when a lot of

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the currency was given out to the community, and our founders

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came out of that. And so now we have a few founders with a decent

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position within the currency which we'll call their founding shares

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and that's incentivizing them to work on the project.

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And we anticipate that this is actually a requirement for

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these types of entities to work properly.

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They need to be incentivized.

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So how do you do this in a fair way?

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If you give the founders coins, they could dump them on the market at any time

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hurting all the investors.

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Well, in a centralized corporation, we have another example.

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And that is that there is disclosure that is required for selling coins (shares)

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on a publicly traded company, and we believe that

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Virtual Corporations should be the same way.

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How much of the virtual currency should go towards the founders themselves?

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In the case of something like Apple, we're dealing with just shares,

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and so you have investors and you have founders who have shares -

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and those are often times different classes of shares.

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But in a virtual currency, we only have one type of token.

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So we need to split up that type of token for the different groups of people

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so we can incentivize them all properly.

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What we would recommend is that about 10% goes to the founders

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then 70% to the infrastructure, and then the last 20 to the currency itself.

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However, this isn't how Dash was set up originally

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This is just how we believe a Virtual Corporation should be set up in the future

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to be completely successful.

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We actually discovered this accidentally

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because there was an error in the code in the first 24 hours

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that created a lot of coins. And some of those went

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to the founders and some of those went to the community.

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and then, over the next month, there was a lot of selling on the exchanges

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which separated those that wanted to be founders from

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those that just wanted to make a little money.

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In Dash, all of the founders have less than 10% of the currency.

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And you can compare that to Bitcoin where over the first 2 years there was

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about 6,000,000 (six million) coins issued of 21 million.

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So what about automating business functions?

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It's really important to note that every part of our

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Virtual Corporation is actually automated.

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So we've automated the capital reinvestment, because it takes the network to do that,

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We've automated governance because it also takes the network's

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approval to do that,

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and our infrastructure is incentivized as well.

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The only thing that is automated in a more classical crypto currency like Bitcoin

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is the production. How about our corporate rolls?

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Every aspect of those is also automated.

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Full nodes are automated with our second tiered network.

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The decision making is automated with our decentralized governance

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and budgeting system

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and then our work force and suppliers are automated through our core team

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who manages that for the network.

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From a technical level, all of this works through

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decentralized, trustless technology

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and that's why it's all automatic.

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Some of the decentralized technology that we use

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for the funding mechanism is called the

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Decentralized Governance Budgeting System.

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And essentially what this does is it gauges the interest

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of the second tier network in any decision that needs to be made

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about where to spend money or what to do.

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And by utilizing this network, the second tier network and the

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thousands of people that manage it, we actually gain

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the wisdom of the crowd, which means that

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when you take the opinions of thousands of people that know a lot

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about a given topic, and then you ask them a question about

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that topic, the majority of them should know what to do

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about it. And then we should be able to make the right decisions

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most often of the time. All of this utilizes the human element plus

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automation in a way that is mixed together to

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provide as perfect efficiency as possible.

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This is it for our Virtual Corporation Video. In the nest video we'll be covering the incentive structures and the Masternode network.