Dash (DASH)

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Field

Content

General information

S.1

CASP Name

BB TRADE ESTONIA OÜ

S.2

Relevant legal entity identifier

984500L05A5D0E66Q610

S.3

Blockchain network name

Dash

S.4

Name of the crypto-asset

DASH

S.5

Consensus Mechanism

Proof of Work (PoW - X11 algorithm) + Masternodes (Proof of Service / Two-Tier Network)

S.6

Incentive Mechanisms and Applicable Fees

Dash operates on a unique two-tier network. The first tier consists of miners who secure the blockchain using a Proof of Work (PoW) consensus based on the X11 hashing algorithm. The second tier consists of Masternodes, which are servers running on a collateral of 1,000 DASH, providing advanced services like InstantSend (instant transaction confirmation) and PrivateSend (enhanced privacy).

Incentives: The block reward is split among different network participants:

Miners: Receive a portion of the block reward (e.g., 45%) for successfully solving PoW puzzles and creating blocks.

Masternodes: Receive a portion of the block reward (e.g., 45%) for providing network services and maintaining their collateral.

Dash Treasury DAO: A portion (e.g., 10%) goes to a decentralized autonomous organization (DAO) treasury, funding network development and proposals.

Fees: Transaction fees on Dash are generally very low and are burned (destroyed), preventing network spam. The fee structure is designed to be minimal to encourage usage. This hybrid model aims to combine PoW security with enhanced functionality and governance.

S.7

Beginning of the period to which the disclosure relates

2024-01-01

S.8

End of the period to which the disclosure relates

2024-12-31

Mandatory key indicator on energy consumption

S.9

Energy consumption

~15,000,000,000 kWh per calendar year

S.10

Energy consumption sources and methodologies

The energy consumption of the Dash network is primarily driven by the electricity used by specialized mining hardware (ASICs optimized for the X11 algorithm) and the operational energy of the Masternodes. Methodologies for estimation typically involve:

PoW component: Modeling the energy efficiency of X11 ASICs and scaling by the overall network hash rate (similar to Bitcoin's methodology, but for X11).

Masternode component: Estimating the average power draw of standard server hardware for Masternodes and multiplying by the number of active Masternodes.

The primary energy consumer remains the PoW mining, while Masternodes contribute a smaller, but non-negligible, portion.

Supplementary key indicators on energy and GHG emissions

S.11

Renewable energy consumption

~30%

S.12

Energy intensity 

~2054.79 kWh per transaction

S.13

Scope 1 DLT GHG emissions – Controlled

0 t CO2eq per calendar year

S.14

Scope 2 DLT GHG emissions – Purchased

~7,125,000 t CO2eq per calendar year

S.15

GHG intensity 

~976.03 kg CO2eq per transaction

S.16

Key energy sources and methodologies

The energy sources for Dash's mining and Masternode operations are globally diverse, encompassing a mix of fossil fuels (coal, natural gas) and sustainable sources (hydroelectric, solar, wind, nuclear). The specific energy mix used by individual miners or Masternode operators varies significantly by geographic location and economic incentives. Methodologies for assessing energy sources typically involve:

Geographic distribution: Estimating the regional breakdown of mining hash power and Masternode locations.

Grid mix analysis: Correlating these locations with public datasets on electricity generation mixes and carbon intensity factors for those regions (e.g., from IEA, EIA, regional energy authorities).

S.17

Key GHG sources and methodologies

The predominant source of Greenhouse Gas (GHG) emissions for Dash is Scope 2 (indirect emissions from purchased electricity). Methodologies for estimating these emissions involve:

Energy consumption * Emission Factor: Multiplying the estimated total electricity consumption of the Dash network (S.8) by the carbon intensity (grams of CO2 equivalent per kWh) of the electricity grid mix where miners and Masternodes operate.

Consideration of hybrid model: Accounting for both the PoW component (major contributor) and the Masternode component (smaller contributor) in the overall energy and GHG footprint. Reliable, regularly updated comprehensive reports for Dash's specific GHG footprint are limited, thus relying on broader PoW and server energy modeling.