This is a slightly technical subject to satisfy readers of a curious bent. Dash Projects refers to the activity of individual members of the Dash community, or defined groups of members, to generally improve the public profile of Dash, ultimately the level of investment in Dash. Such activity always costs time and money which is then reimbursed from the Dash Treasury using the 10% retention of all Dash mined.
Projects are created through the submission of proposals to the MNO’s who vote on the credibility and suitability of the proposals. Those approved are then granted funding in accordance with the proposed budget. The only flaw in the process is that the MNO’s are unable to interrogate the proposal owners as to their credentials or bona fides and, therefore, the process is open to outright fraud.
The danger of fraudsters to Dash projects is the more so in Africa where some regional cultures have virtually industrialised fraud. This means that Africa is unlikely to gain approval for large, expensive projects, for fear of Dash being ripped off again by characters who simply disappear with the funds granted to them. So, in order to provide the genuine project proposers with a decent chance of having good proposals approved by the MNO’s, the “escrow” process has been created..
“Escrow” generally applies to special trust accounts created for legal purposes, usually administered by an attorney, in order to facilitate the transfer of funds between parties who do not trust one another but trust the attorney, even if modern attorneys are of questionable trustworthiness. Large African projects, would be submitted “subject to escrow”, the project funds (if granted) being held by in by a trusted party on behalf of Dash until satisfied that project milestones have been achieved. The funds are then transferred in accordance with proven progress.
Several escrow providers within the Dash community, can be used by Dash as “honest brokers” due to their proven reputation of dealings with Dash, reputation built at personal cost and far too valuable to lose. Of course, any project proposal submitted as subject to escrow would be subject to an administration fee payable to the escrow broker, a small price to pay to ensure that the growth of Dash is not hindered by any lack of credibility in imaginative and industrious proposers.
This might appear to be highly bureaucratic but it does ensure continuity in the project pipeline. It also provides proposal owners with reasonable insurance against summary dismissal of a good proposal and consequent loss of the Proposal Fee. It must be emphasised that the escrow process does not affect small projects (total budgets not exceeding Dash10-20 and submitted to Dash Boost).
Of course, the tendency would be for escrow brokers to be lax in checking real project completion before making over payments, such that they remain popular with proposal owners but the brokers must be aware that their reputation rests with the wider Dash community. It would only be healthy for all concerned if escrow were to be treated with reasonable rigour and could lead to brokers being able to offer forward cover to protect proposals against Dash volatility. And forward cover remains a subject to be addressed at a later date.