10% of the block reward goes directly to the Dash general treasury. This equals $10,000+ 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.
45% goes to the masternodes and another 10% to the general treasury, of which distribution is voted on by the masternodes, so totaling 55%. How is this not centralization?
The most logical explanation is these monies are being used to buy dash and is causing the pump.
But all scammy behavior aside, has dash created the perfect storm to suck in more suckers? Ie: are we going to see dash stay at these high levels as it is just too easy for dash crew to manipulate price? But then again maybe manipulation could be a good thing, if it could keep the price stable, then dash could be used as a store of value. Im not saying i trust dash. But I could see a large number of ignorant indifferent users giving their trust.
And lets face it, they might be marketing geniuses. Digital cash... Perfect name for the general population who can barely understand bitcoin, who can barely turn on a computer, and barely manage a smart phone.
Manipulation cannot lead to a stable price unless DASH has underlying value. Because if people are buying due to manipulation, once they find out, they get out, and the price plummets (definition of a bubble).
I don't like the fact that it requires a large amount of capital to buy/operate a masternode. This is automatically a centralising feature. But the other question is, how do the incentives for masternodes work? The more that get in on it, the less each person should make (eg in bitcoin, the more miners, the harder the difficulty of the problem, the more ppl trying to get the same number of fixed bitcoins). Is it the same for masternodes? So that it would not benefit all the current masternode holders if more ppl got in?
If the reverse is true, if it benefits the current masternode holders as more ppl get in, then this is a Ponzi scheme. Is there a fixed number of people who can operate masternodes, or is the supply unlimited?
As more people get in, there is an incentive to ddos attack other nodes--some may point that usage may increase to cover these costs, but actual tx per day has remained flat for the coin's life and its supposed marketing genius has only lured more speculator's and not consumer's money into the pot. Apparently it's like the King and Duke in Huckleberry Finn--conmen who put on a shitty play and get a bunch of towns folk to buy tickets, but rather than run the men out of town--likely out of embarrassment as the story indicates or more likely Twain's ability to put common happenings into satirical light--the townsfolk brag about the play and a new bunch of people are scammed by a poor show (IIRC there isn't a third show, but it's likely dash can keep doing this until it runs out of dumb money, gets actual usage and the third doesn't happen, or an interested government agency takes action).