In which I love my truly, truly fair*

DAGlabs is a for-profit entity whose business model is based on mining Kaspa. DAGlabs is additionally funding many core Kaspa devs and researchers.

Fair launch

Kaspa contains no premine or founders’ rewards.

Community launch

In contrast, Kaspa is a “community launch” coin.

Initial Hashrate Offering

DAGlabs will oversee a pre-launch customization of ASICs that will support a hash function specific to Kaspa, providing a head start on mining. These machines will dominate the market for an unknown period until other players decide to enter. The value of these machines must be distributed across early contributors, investors, the community, and a future development fund in some form of ASIC presale. The benefits of an “ASIC presale” model are described thoroughly in Nic Carter’s post, In support of the proof of work [un]fair launch. TL;DR: Kaspa will have good and well-understood PoW security from the start, the regulatory risk normally surrounding token presales is reduced, and early adopters are rewarded and development is monetized at a limited capacity, among other benefits.

No free launch

Before mainnet launch, a DeFi contract will auction out the right to future Kaspa coins. Interested community members will lock some coins (say, ETH) on said DeFi contract and receive Kaspa at a future date. These Kaspa would originate from the machines operated by DAGlabs. The coins will flow to the contract, and in exchange the contract will release the locked ETH and send them to DAGlabs. The money will (1) repay DAGlabs for the capital expenses of the ASICs, (2) fund the operational expenses of these ASICs, and (3) be saved for future development.

GHOST protocol (Ethereum), CS postdoc @ Harvard