Chain-level consensus-based taxation as a revamp of traditional tax systems

2023-12-25T22:16:54

Traditional taxation is simply one of the famous forms of legal extortion.

Cause imagine paying taxes on income, then paying taxes on products bought with the income that had already been taxed and let's not forget that all three channels of distribution for those products bought had also already been taxed and will in fact be taxed for the income they attain from your purchase.

And where does the money go?

The idea of “centrally imposed” taxation has never sounded right to them - I guess we did it to ourselves with the so-called democracy bullshit that isn't even relevant after the election. If a citizen so personally voted in people to lead them, they most certainly would also opt-to voluntarily fund their services during their stay in the office - contributing to proposed projects and service implementations where necessary.

Some may say that there would be an imbalance in who gives and who doesn't, well, if we're being honest, there is still currently an imbalance in who gives and who doesn't, it doesn't matter whether imposed or not, many will still evade taxes.

But heads-up, blockchain with crypto proves that many would give - simply plug in incentives for involvement.

Taxes are imposed for profit not to forster commitments

Some are of the idea that taxes are mandatory so as to foster broad involvement but that is simply due to taking a blind view on things here.

Taxation has always been a game of profit, we see it everywhere. In the governmental systems, and in private sectors, it has zero shit to do with fostering involvement or commitment, it's simply a forced movement to take money from people.

One of the things that proves this is that in most cases, these taxes are not placed into profitable ventures.

The economy of the world is largely unsustainable, this is why we have various financial crises here and there. The values generated are simply forced down to a small body that does not leverage it to expand the nation.

Instead of expanding developments, rulers seek to expand debt because the logic is that it doesn't necessarily need to be paid off, but rather, held long-term.

When you look at the world of crypto, you can see quite the opposite. Network fees are channeled to parties that bring value to the network - effectively creating an economy of scale.

Chain-level consensus-based taxation as a revamp of traditional tax systems

Blockchain with crypto is designed to reward voluntary commitment and involvement. The economic design of this technology is simply self-sustaining from so many different angles.

Block rewards incentivizing miners, validators and witnesses.

Swap fees incentivizing liquidity provides.

Rewards pool incentivizing contribution of text and curation to the chain.

Inflation rewards are not centrally moving to a select few with no risk or exposure to the network. Instead, it is autonomously incentivizing active contributes.

Fees from developing networks and ecosystems are not going to non-deserving peers but active participants with monetary exposure to the network or ecosystem.

What does this do?

It makes the average person want to get involved.

It introduces a risk layer for rewards - making all participants seek to play fair by the network.

And it fosters development from generated value as that really just means more long-term benefits to the involved.

Unlike the fiat-based economy, crypto has in-built layers for building sustainability into ecosystems and scaling with active developments.

The fact that taxes like swap fees, transaction fees and block rewards are chain-level determined by smart consensus mechanisms simply makes the system proof of exploitation at the fundamental level.

The world can build better economies with crypto and blockchain technology.

Posted Using https://inleo.io/@badbitch/chainlevel-consensusbased-taxation-as-a-revamp-of-traditional-tax-systems

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