Readers may be aware that Dash, formerly Darkcoin, has a system of what they refer to as “Masternodes,” which are full nodes that receive part of the mining reward in return for confirming transactions far quicker than certain other cryptocurrencies.
Unlike full nodes in Bitcoin, a Dash masternode requires a collateral investment of 1000 Dash, or over $2,000 USD at current rates. Recently, the Dash community raised the question as to whether this network of nodes could be utilized for other purposes. Specifically, whether or not it would be useful to utilize the network of full nodes to vote on core development decisions. The savvy reader might guess where such a system might come in handy for other cryptocurrencies, that is, the block size debate, still raging with a potentially harmful fork in sight.
Also read: Evan Duffield of Dash (Darkcoin): Dash will position itself as a direct competitor to Bitcoin
From the Dash press release on the subject:
Having a well-defined way to vote on important topics will allow the community to remain cohesive as it faces a highly dynamic environment that requires crypto projects to often make hard decisions on direction and ensure these decisions are made in a timely way.
This system also entails a new network of websites which will be project initiatives for the Dash community. Anyone with an interest in Dash will now be able to propose things for its benefit and potentially garner funding from Dash mining, the core of its value as a cryptocurrency, utilizing the X11 algorithm conceptualized initially by lead developer Evan Duffield.
Dash implemented a voting mechanism where each full node represents one vote. The votes are propagated through the network and can be verified by any interested party. This ensures a decentralized way of managing the Dash project as there are potentially hundreds of operators that can take decisions together in a very practical way.
Additionally, the masternode operators agreed to dedicate 10% of the block rewards to fund this program. These funds were originally planned as additional incentive for masternodes but instead this assembly of operators will help reinvest these funds by voting on development and promotion initiatives that can be proposed by anyone in the community.
It seems that the Dash community has long been aware of the adage: a smart man learns from his mistakes, but a wise man learns from the mistakes of others. Indeed, they’ve gotten ahead of the curve with such things as instant transactions.
With this new system in place, which they say more than 70% of the community took part in voting into existence, such a thing as a block size debate simply wouldn’t happen. Those who are truly invested in the currency and are running masternodes would vote on the matter. Those who wished to influence the vote would have to either, as the saying goes, “put up or shut up,” that is, invest in a masternode or accept the decision of the masternodes.