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Charlie Lee Vs Dash: Are Lee’s Allegations Justified?

Litecoin’s creator Charlie Lee has sent out yet another wave of criticizing tweets against Dash. In the tweets, he claimed that the coin has now become a highly centralized project.

Charlie Lee Dash
Image Source: Imgur

Dash seems to have become Lee’s favourite target.  In the past, Lee used the words ‘thrash’ and ‘scam’ for the dash. Lee’s statements do concern some real issues and some of the claims deserve closer scrutiny.

His most recent allegation is that Dash’s team receives unconditional funding. He is presumably indicating the fact that 10% of Dash’s block rewards are allocated to Dash’s governance budget. In reality, Dash Core Group does not have a monopoly on funding.  The DAO can vote them out. Lee naturally prefers Litecoin’s system where all development is funded by donations. Lee deleted the tweets related to the above, so may have changed his opinion.

A lot of early criticism from Lee against Dash was about Dash being instamined. When Dash first went live, about 2 million tokens were created in just a few days. This means that approximately 10-15% of Dash’s total supply was accidentally created. This was apparently due to an error in Dash’s adjustable mining difficulty.

Lee highlighted this fact quite a few times over the past few years. It became especially controversial in July when Dash’s proponents reminded him that Litecoin was instamined as well and the Dash’s instamine originated from a bug in Litecoin’s code, from which Dash was forked. In the instamine of Litecoin, 500,000 LTC was created, which make up about 0.6% of Litecoin’s eventual total supply.

Instamining is a serious issue. This is because it allows founders and early miners to obtain a larger share of the coin. However, since both coins have been in operation for more than five years, any instamined coins have probably been thoroughly distributed throughout the market by now.

Dash offers PrivateSend, a built-in transaction mixer that prevents Dash payments from being traced. As a result, Dash is sometimes considered a privacy coin. This privacy feature was also a subject of Lee’s criticism in the past.  On the other hand, Litecoin has plans to introduce full privacy features via Mimblewimble. This is drawing further controversy.

In order to create and propagate blocks, Dash relies on a hybrid proof-of-work and proof-of-service consensus, and Lee stated that other projects are beating Dash at its own game in this regard. Lee appears to be biased, as the other project Decred’s consensus mechanism is based on his own proposal. Assuming that Lee is justified, the hybrid PoW/PoS model would provide excellent protection against 51% attacks. Meanwhile, Dash has introduced ChainLocks to provide extremely high security. It’s hard to say which is truly more secure since neither blockchain has ever been successfully attacked.

Although Lee has regularly criticized Dash, he had a few good words to say about the project at times as well.

By now, Litecoin seems to have secured its position in the top ten. But this may not be reason enough for Lee to stop criticizing Dash.

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About Shreya Kapoor

20 y/o budding journalist, with a tinge of good vocabulary.

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