 Well, hello, and welcome to the Daily Decrypt. I'm your host, Amanda, and today's fine episode is brought to you by the Merkel. The next version of the Dash reference client will support an increased block size from its current cap at 1 megabytes to 2 megabytes. But the interesting part of the story is not the block size increase, so much as how it was decided upon and how quickly the decision was made. The governance process in Dash is currently unique among all cryptocurrencies, and it takes place in its second tier, which is to say that Dash's masternodes simply put it to a vote. Well, that sounds like a lot of new and strange words. Let's delve into how the process works. First, let's define what a masternode is. Currently, all cryptocurrencies are dependent upon individuals choosing to host copies of that currency's ledger, or blockchain, somewhere on a computer. And in general, these people are referred to as nodes. In 2014, lead Dash developer Evan Duffield designed a scheme which would allow any of Dash's nodes to do more than just host the blockchain in exchange for pay. And these are what he calls masternodes. Among other network services, these masternodes provide the governance direction of the development of the coin through voting. Dash's masternodes each must lock in 1000 Dash as collateral, and as a whole, they're paid half of the block reward, with the other half going to Dash's proof-of-work minors. Now that you know what a masternode is, how did the vote to double the block size take place? On January 18th, Duffield submitted an official proposal to Dash's roughly 3,500 masternodes asking for their approval to double the block size cap. Duffield stated that in order for the proposal to pass, at least 33% of Dash's masternodes would have to vote, with a majority of them voting yes. The proposal did indeed pass within 24 hours, with the current status of 2,163 yes votes and 4 no votes. The decentralized governance process in Dash is used for making more than just development decisions as well. It's also used to decide whether any new coins should be created per block to pay for development and or marketing. Anyone can submit a budget proposal to Dash's masternodes to get funding for any kind of Dash-related project. And when I say anyone, I mean anyone. I did it once. That's how the Daily Decrypt got sponsorship by Dash a few episodes back. It costs 5 Dash to submit a proposal and those coins are then burned, or taken out of circulation entirely. Will other coins incorporate a second-tier governance model? Or will another development team create an even more effective form of governance? As always, time will tell. Today's episode has been brought to you by The Merkle, a source of global cryptocurrency news which has also proven to be on the ball with timely scam alerts. In addition to fintech happenings around the world, you'll also find interviews, tutorials, and cryptocurrency charts. Check it out for yourself at themerkle.com. That's all folks. Have a good day.