Dash is reportedly laying off senior members of staff as the crypto winter forces another round of redundancies. The Block has reported that the team will lose some eight percent of its workforce on March 7, including their Head of Strategy and Head of Business. The decision is in line with an announcement they made two weeks ago, but still comes as no less of a shock and is a reminder of the impact of the current bear market.
Dash Implements Cost-Saving Measures
Dash CEO Ryan Taylor announced in a blog post towards the end of February that Dash was planning to implement some cost-saving measures, measures which now seem to have been realized:
As we shared on the last quarterly call, Dash Core Group (DCG) was faced with some tough decisions to maintain financial stability in light of the current market…earlier this month, we made the decision to lay off four of our DCG colleagues to reduce costs and align them with the available budget.
The four departures will free up enough capital to see the company through the next few months, and Dash employees have also been asked to reduce or forfeit their compensation, and in some cases their entire salaries, in a bid to keep the organization going. This is the kind of squeeze being felt by almost every project in the blockchain space, with several making similar cutbacks over recent months.
December Prediction Comes to Pass
Taylor referred directly to the price of the Dash token as a reason for the financial problems facing the project, saying that the circa-$65 per DASH value was too low for them to continue operating as they were. This admission echoes a prediction made back in December by a Dash community member who said that if the price of DASH fell below $80 there would not be enough in the pot to pay DCG staff. Some financial restructuring has allowed this threshold to drop to the current levels, but clearly the fundamentals of this prediction have come true.
Taylor announced in the February blog that he was “hopeful that Dash Core Group can weather the current environment”, but with no respite on the immediate horizon, hope may be all that Dash, and other projects, have left.