dashthoughts

Here are some thoughts on DASH. 10% of the block reward goes directly to the Dash general treasury. This equals $5,000 per day. Another 45% goes to large holders of Dash called masternodes who provide a mixing service representing about 2% of the total transactions on the network.

This level of compensation to masternodes is ludicrous, with a total of $25,000 per day going to a handful of server operators. The truth of it is that this is a scheme to further remunerate the founder of Dash, Evan Duffield, since it is thought that the majority of these masternodes are controlled by him and others close to him. Here's why:

Dash tokens are actually a remnant of a currency called XCoin. The initial coin offering for XCoin was not widely advertised and the developer Evan Duffield lied about the release date and time. Evan released the coin without warning and a supposed "bug" then allowed 1.5 million XCoins to be mined in the first 8 hours. An analysis of the early XCoin miners showed that over 80% were through a VPS and likely operated by the same individual. Only later was the masternode idea added on to XCoin which Evan rebranded as DarkCoin and then later called "Dash", yet the Dash network then accepted those same XCoin tokens that had previously been instamined. This means that almost 20% of the current Dash supply was instamined by a very few number of individuals, mining a coin which had no apparent innovation or value added to the Bitcoin proposition.