I think the introduction of projects like Ethereum, Blockstream and many crypto start ups with VC funding makes clear that in order to develop a project long term you need funding. I think an adaptive system like Dash's decentralized budget system, where funding is voted by an assembly of people on an ongoing basis, without the existence of a central budget under the control of a central authority is far superior than the ICO model for a crypto start-up.
From experience, investing too much too soon is a very common mistake when building a new project/company. At the beginning you know less about your own business and it takes time to build a vision that you are ready to follow for several years. That means you normally have to try a few different things before you find your way and are at risk of investing too much on those first 3 years of operation and then having funding issues later on.
On the other hand, having no funds at all is a far worse situation to be in as it does not allow you to hire the services of companies and individuals a project needs to reach its development goals and to communicate to the public about the solution. So is clear that either an ICO or Dash's system is far superior than no funds or relying solely on altruism.
The advantage I see in Dash's approach is that getting funds on a as needed basis and through a public approval process prevents unnecessary spending, is more transparent and most importantly it allows the project to invest organically and adapt to a changing market environment. So as the priorities of the market shift you are able to invest in different directions. For example, the market right now is very interested in scalability solutions, Evan is already working on a very cool model for Dash that will be presented when he is ready. Other important hidden needs may come up in the future that are not visible right now but with an adaptive funding system we will be ready to approach those when they come up.
I think during the fist few years an adaptive decentralized funding system, like Dash's, is superior to getting a large amount of money up-front. After you reach critical mass and a project has found its niche and is more stable; having a larger centralized budget could be better. But having controls and voted spending at the beginning will give a community driven project like Dash a far greater chance of success. It is not the only factor, you also need true talent and innovation, a hard working community, good timing to market and good karma, but a sustainable funding model is definitely a very important factor and quite challenging to implement. So I think after September 5th a whole new paradigm begins for Dash.
By Minotaur26
Source: Bitcointalk.org
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