One Dash masternode owner has moved to have CEO Ryan Taylor, citing serious problems for the company if the coin’s price drops much lower.
The proposal, which you can see here, is titled (creators caps, by the way) “DEMOTE RYAN TAYLOR to an Advisory Role and INSTRUCT HR TO HIRE A NEW CEO”, and has six days left to run. It was bought by a Dash masternode owner by the name of ‘SavingPrivateDash’, who says they have put $1000 of their own money into getting the proposal up before the community.
The Dash Masternode network is central to its model for anonymous transfers, and requires an investment of 1000 DASH (nearly $140,000 at current prices) for anyone wishing to participate. Masternode owners do, though, earn DASH coins back for providing their computing power to the network. Also, as part of the rights they are afforded, the get to participate in putting forward and voting on ‘Budget’ proposals, which allow Masternodes “to direct funds to development, marketing or law projects by votes of masternode owners”. This is how SavingPrivateDash’s move is playing out right now.
In the motion, SavingPrivateDash says that Dash Core Group (DCG) CEO, Ryan Taylor has “destroyed the market’s confidence in Dash by repeatedly breaking promises and missing deadlines”, noting that “in spite of millions of dollars available to him” features promised in 2016 are still not available” and that the DASH prices is now 0.02BTC, down from 0.09.
Perhaps more worryingly, the motion also alleges that, considering DASH is now worth less that $200 – roughly its lowest point since mid-2013 – “Ryan has grown his company irresponsibly.”
Specifically, it says that there are “6,176 DASH available in the budget and DCG [the company running the crypto] has about $500,000 in monthly expenses.” This, it states means that “if the DASH price goes below $80, not only there won’t be funds for any other community projects, but also not enough to pay the salaries of DCG employees.”
“The threshold for complete chaos,” though, they conclude, “is probably around $150-$160, because there are other financial obligations that they need to meet besides salaries.”
The crux of the matter is that at one point Dash had access $30,000,000 in funding, but – SavingPrivateDash alleges – “didn’t create a safety net for DCG” despite having this “ludicrous” amount of money at its disposal. “Because of his unforgivable mistake,” the motion states, “other important community projects are either already defunded or in serious risk of being defunded.”
It goes on to outline gripes with the recruitment and performance of the team at the Dash Core Group, calling it “a stale and boring company that does not innovate!”
In the light of recent allegations regarding Ethereum-backed ICOs being forced to ‘Cash Out‘ their crypto assets for fear of the current bearish trend wiping them out, it appears that it could be becoming a problem endemic in the start-up focused blockchain sector, as companies scrabble to get products to market.
$Dash is quickly running out of money with a $500k/mo burn
I personally know of 2 other well known cryptos with multi 8-figure marketcaps that are also almost out of money.
This is the step before coins go to $0.
— Bitcoin Birch (@BitcoinBirch) August 23, 2018
As for SavingPrivateDash’s proposal? At the moment it has gained only 95 votes in favour, compared to 831 against and 33 abstentions, so it looks like Ryan Taylor is safe for now. However, the motion’s backer doesn’t look like they are willing to back down, saying that – should it fail – they will resubmit again on January 1st, 2019.
“Let’s see how many of you change your mind after realizing Evolution [Dash’s plan to make itself more user-friendly] was not delivered, and deadlines from the roadmap were missed yet again.”