People spending DASH at NH retail are getting instant rebates, aka “DASH-Back”. Here’s why and how it works.
UPDATE October 2020: The DASH-Back program is over, but this article will remain online for historical purposes.
One of the biggest challenges that cryptocurrency needs to overcome in the market is the tendency of its adopters to hold and never spend their crypto. It’s called Gresham’s Law, the idea that bad money drives out the good from circulation. That means given two choices of which money to spend, the consumer, understandably, will choose to spend the inferior currency. Here, the inferior form of currency is the government money – the U.S. Dollar – and the better form is cryptocurrency. Since crypto users know there is a chance their crypto could go up in value and we all know the U.S. Dollar is sure to go down in value over time – due to politicians inflating the supply of U.S. Dollars – the smart thing to do in that situation is to spend the dollars and hold the crypto.
This is a difficult situation because the more people who only hold crypto, the less useful of a currency it is! Thankfully, New Hampshire-based merchant payment processor Anypay has come up with a solution to overcome Gresham’s Law and incentivize people to actually spend their cryptocurrency in these still early days of crypto.
What if, when you spent your crypto at local New Hampshire merchants, you instantly received some crypto back into your wallet? No filling out forms. No signing up for a program. No “points”. No waiting weeks or months for the payout. Just an instant rebate, right at the point of purchase – on anything you buy in the store or restaurant.
Sounds too good to be true, right? It’s smart to be skeptical, especially when it comes to money. However, it is true, and it’s only happening in New Hampshire thanks to Anypay. They’re calling it “DASH-Back” and it only applies to purchases made with DASH aka “Digital Cash” at DASH-accepting retailers (here’s a map of them in this area).
Not only do you, the buyer, get DASH-Back instantly, but the merchant also gets a DASH bonus on each sale! It’s win-win, but surely you’re wondering where the extra DASH comes from. Is this a Ponzi or pyramid scheme? Thank goodness no. Everything here is totally transparent.
To truly understand what’s happening here, first, you should take two minutes and watch this short video on Bitcoin mining. Miners help secure the decentralized network and are responsible for finding the “blocks” full of transactions that are mined onto the “blockchain”, which is the decentralized public ledger that is the guts of cryptocurrencies like Bitcoin. The miners are rewarded with a certain amount of cryptocurrency for finding a block. In Bitcoin’s case, this happens every ten minutes.
This type of mining is also how more DASH comes into existence. However, DASH’s mining rewards are handled differently than Bitcoin. With Bitcoin, 100% of the mining rewards goes to the miners. With DASH’s system, the miners get 45% while the DASH “masternodes” get 45% and the remaining 10% goes to a promotional/development budget called the DASH Treasury. Those masternodes, who are people with at least 1,000 DASH locked up via computers that assist the network with certain functions, can vote on proposals on how to divide up and spend that 10%, each month. Right now in Summer of 2018, this monthly budget totals more than 6,000 DASH per month.
Anypay created the program for DASH-Back and rolled it out for testing in Portsmouth and Keene – New Hampshire’s two hotspots for cryptocurrency real-life use – over Spring of this year, using their own funds. Then, in May they made a proposal to the DASH Treasury to fund DASH-Back as well as further development of Anypay. The masternodes voted for their proposal and they are now receiving over 200 DASH per month. They’ve announced half of the amount they are receiving will go to the DASH-Back program’s funding. That’s 100 DASH per month that will empower New Hampshire consumers and business owners. (If you’re a business owner or manager and want to learn how to accept cryptocurrency and get in on DASH-Back, check out this article. If you need more reasons why you should accept crypto, you’ll find them here.)
The point of the DASH-Back program is to encourage people like you to spend DASH at New Hampshire retail so you can see how easy (and rewarding) it is. New Hampshire was already a cryptocurrency hotspot, with more crypto-accepting businesses in Keene and Portsmouth per capita than supposedly top cities like San Francisco or New York City (according to Coinmap.org). Anypay wants real-life cryptocurrency usage to spread faster and they’ve brilliantly overcome the hindrance of Gresham’s Law with DASH-Back.
UPDATE: In 2018 Anypay also launched Bitcoin Cash-Back.
Stay tuned here to the new Monadnock Crypto blog for the latest news and more exciting announcements!