Post
Topic
Board Announcements (Altcoins)
Re: [ANN][DASH] Dash (dash.org) | First Self-Funding Self-Governing Crypto Currency
by
toknormal
on 19/11/2020, 17:23:49 UTC
ok...thank you for stating your hypothesis, yet again.  Now please show evidence that this is in fact true, and the reason for the low value of DASH.

These are aggregate principles. That the Dash protocol is as described above as academic. The theory above predicts that we should fall behind on marketcap over the years and we have.

I'd say it more behoves anyone who predicts otherwise to present their case because the only one that's been presented so far is that we haven't "gamed our supply growth" well enough. That to me is a paultry case when we have a great big elephant in the room staring us in the face like how to fund a $27 million per year bill for masternode margins which doesn't get invested back in the chain. That's 27$ million per year that our competitors spend directly on securing ALL their blocks opening prices at high difficulty levels.

Remember also, that bill grows with price because masternodes have fixed costs, mining costs are variable. So as Litecoin etc prices rise, so does their mining budget. Nearly ALL the fiat they draw from markets goes towards raising the difficulty level across all blocks in the chain and keeping the new block price in sync with the rising market price.

However with Dash, as the market price rises, the opening price of HALF its blocks stays at zero. Worse than that, any of these blocks that DO hit the market don't draw any fiat into the chain in the form of difficulty contributions. The fiat raised bypasses the Dash ecosystem completely.

You may argue that they have a positive marketing effect by creating demand for masternodes. But I would argue that the market simply prices in the capital loss on the collateral required against the reward and in the long run concludes that it cancels it. Moreover, as I've stated before, we need to consider the equilibrium condition anyway. You can't base the viability of the coin on masternode growth because it's limited and we're probably at saturation right now.

The way out of this problem is to set margins at parity because that way we get competitive again with the other mined assets like Litecoin, Monero, et al and we can sustain price rises. That means swinging right around and making a massive restoration to the mining reward but still make masternodes profitable to run. Then they can restore their rewards in dollar value and sustain growth. (Remember there are plenty multi-milllion dollar mining operations that run on a 10% profit margin over cost).