Dash group CEO Ryan Tayler analyzed the root causes of the declining price of Dash and disclosed substantial plans to fix its dwindling value in the crypto markets.
After a pick point of $59. 33 at the November end, Dash prices are facing a consistent drop in December. The moving average has maintained $51.46 in the last week.
Owing to these fluctuations, Ryan Taylor has unveiled a bold strategy to fix the dash price in the ongoing bulling market. The strategy includes probable reduction of the proof of work mining reward and introducing proof of stake feature.
In a series of tweets on December 6, Ryan Taylor announced his ideas for the improvement of the Dash price, including the economic model, the future path for improvement, user staking, and miner staking policy.
1/ Dash Core Group is live streaming our Open House this Saturday https://t.co/PdWDHEgLjl.
I will be presenting a newly-added agenda topic… covering our assessment of how to dramatically improve #DASH's attributes as a store of value.
— Ryan Taylor (@RTaylor05) December 6, 2019
At a Dash Evolution Open House event in Scottsdale, Arizona, Taylor presented the extensive plan which elaborated a comprehensive history of Dash‘s price structure and its resultant influence on deeps and highs in connection with rewards within the network.
Related: Our Dash crypto price prediction
To resolve the loopholes in incentive policies, Taylor revealed certain solutions, including the reward change plan and the alteration in Dash’s entire consensus method.
Highlights of the presentation:
Taylor elaborated various components involved in Dash’s incentive model, including the new coin’s creation, which was distributed further to a 45% reward split between the master nodes and miners each. The move was to keep the coins preserved off the market, while 45 % were provided to miners to sell them in markets to maintain the thin margins in the industry. This reward program further fluctuated the price of Dash in 2017.
Taylor revealed that most of the revenue of the miners is spent on labor, equipment maintenance, and electricity expenditure, which compels them to sell the new coins mined that eventually pushes the price downwards. During the market inflations, they are unable to spend more on expansion operations and new equipment purchases due to time constraints. During market crashes, their revenue is spent more on exchanges to cover their maintenance costs, which leads to more downfall of Dash value. This “boom and bust” structure has severely affected other cryptocurrencies and has more severely affected Dash due to its unique structure.
Dash has thus tested many network designs and models of economics to improve and iterate those policies for the improvement of Dash performance.