Crypto Taxes, Creating A Win-Win Situation
Imagine a world where we not only, did we as a people have no taxes, but we were paid to be citizens of wherever we decided to live. No, in this fantasy land we did not over through our government and now we live in some lawless society. Our Government is still very much around and we have found a way to replace the monetary need of our government and possibly given them more money to be able to help build a better society. Best part is, is this new system is all proportionate to the amount of each "tax payer". So wealthier people will be able to contribute more than those in the middle class and so on, and on top of that, every person will be incentivized to contribute as much as possible.
Sounds to good to be true, huh? Well it might be, but the capability might also be just around the corner.
Bring in CityCoin on the Stacks protocol and the Mayor of Miami, Francis Suarez. Back in August they created MiamiCoin. The reason some coin based off of some city is so important is what they were able to do with it in such a short amount of time. before i get into the results of what they have been able to achieve let me tell you a bit about MiamiCoin.
The idea of MiamiCoin is that individuals are able to mine MiamiCoin and as rewards are paid out, 30% of the rewards are given to the city. The city can use this money on whatever they want and its sort of set up on a trust basis between the government and the miners. If the miners don't like what the city is using the funds for they can pull their support and their tokens off the exchange and the city will stop receiving those fund. Its all pretty interesting and i recomend if your interested in it go look them up and join their discord and start learning. That is just a little about the coin the real value and why I bring them up is in what they were able to achieve.
Roughly 3 months after MiamiCoin began being mined, the Miners were able to generate over 20 million dollars for the cities wallet through mining. Mayor Suarez was on an interview with Coindesk and talked about if they were able to annualize that return it would have taken care of roughly a fifth of the cities tax revenue. Not only that they are going to be able to use some of that money to give every citizen of Miami a Bitcoin Dividend. Now using that information you can probably see my idea of no more taxes coming into view just a little bit better.
Since MiamiCoin is a Proof of Stake protocol the way you mine blocks is by staking your coins in a protocol and then you earn rewards, and the rewards are pretty sweet. Currently on Okcoin.com you can stake MiamiCoin for 175% APY, if that isn't a pretty good return I don't know what is. So if we could create something like MiamiCoin, lets call it FedCoin, and US citizens could buy these coins and stake it very similarly to MiamiCoin, they would not only be able to generate money for the government to use but they would also make money for staking it. Obviously there is a lot of scaling issues with this and to be able to replace the entire amount or the taxes the government makes each year we would have to buy a lot of FedCoin to stake enough to raise that much money. But again this is all a thought idea on how a possible use case scenario could play out.
For the interview with Coindesk and the Mayor go here, https://www.youtube.com/watch?v=5-AolMVDrFk
This is a shorter article today, just an idea for a use case that I wanted to put out there to hopefully start helping people understand why this stuff is so important and what its actually capable of.
Disclaimer, I do own some MiamiCoin but I am not affiliated with the team or anything like that.
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