Hive Tax proposals are failed economics

It's quite interesting, interesting in the fact that the Americanisation of the financial system is a failed state but I don't need to tell you that, you already know which is why you're here.

You can no longer make it in life as you do as your told, go to uni, get an education, get a job, pay your bills, get married, have a family, buy a house and your life will work out.

Except something is wrong, you've done those things and still do but you're not getting a big enough slice of the economic pie. Even if you've managed to get a second job or a better one you're still struggling. I mean how hard is it to actually live. Not even make a million and retire, just put food on the table and keep a roof over your head. Many are feeling your pain.

Which is why I'm shocked and not suprised at the continued Americanisation of Hives economic system.

There are some new proposals floating around and I would urge people to read them in full and if a vote comes up, vote with knowledge, although it won't matter because you probably don't have a big enough stack and Hive isnt really decentralised, it is centralised as it can be bought. The bigger your stack the more votes you get. Or, the more power your vote has. The few making rules for the many.

I thought we were trying to stop it that's why we're here? Right? Hmm.

Nothing is ever decentralised, it is the greatest myth sold on block chains and it is also the least important as people are just pump and dump, the ultimate free market where good projects fail because the focus isn't on benefiting the broader community but rather a quick buck.

But that's not why we're here today, today I want to provide some commentary on some of the proposed taxes on offer.

Instant Hive

Nothing is more dangerous to a network that relies on long term staking than it's rapid ability to unstake. If you recall my previous comments around CUB finance I expressed concerns around instant unstakes and that there should be a mandatory 14 day unstaking period. Many of the big chains do it and this is less about retaining people's tokens and more about providing market certainty.

See staking your tokens for a period also removes FUD. If prices begin to drop you don't get mass amounts of people getting emotional and dumping unleashing a snowball effect.

It also prevents mass clean outs something CUB is experiencing at the moment. Where big whales entre, dominate the reward pools and clean up everyone's money. When you include the option to lock cash two things happen. The more you have the less likely you are to lock it up for long (hence the current proposal to instant unlock because big stacks don't want cash locked up). The more likely you are to get more people utilise smaller investments. You don't want whales in your project if one comes along you've got problems coming but no one has managed to realise this in 11 years of block chain.

As a project you want lots of small investors that add up to a whale. This protects you against a massive dump and losing your project. But let's be honest, crypto is more about Lambo and less about functioning use cases.

Yet here we are, on Hive, with a functioning use case about to fuck it up.

I understand that the instant power down is at a fee, a fee that only the top would be able to mitigate and would allow them to play the market. Let's do some basic math.

Whale
Powerdown Value - Fee + upvote value = reward pool pillage. Upvote enough over the 7 day period to cover the fee = NO TAX

Everyone else
Can't mitigate VP to low.

You'd be excused if right about now you say "well they worked hard"

That's a joke right? They worked hard 🤣🤣🤣 enter bid bots, gaming the system and taking advantage of it. Also there is already a tax, a poor tax. It has been the dumbest thing I have ever heard of. Also the system is geared AGAINST smaller users.

Something called a CURVE or more a crane that scoops up all those juicy Hive and sends them up. As a financial investor in Hive it's one of the key things that prevents me from dumping 10k+ on it. Think I'm lieing, go check my CUB wallet, I dumped a few k in there. Dumped a few k in Leo.

Governance is key.

This oh you haven't earned 20 Hive so we are taxing you to prevent reward pool farming is false. Reward pool farming has been going on for as long as the service has been around. It's just how it is.

So to enable a instant power down at a tax that can be gamed is another win to an unequal platform. It will also provide a quick exit with our cash for those with big stacks. Go play another market, not Hive.

I am supportive of a 4 week wait

Power Up Tax

This one is hilarious, like we don't already have one? Oh yes. I forgot, if you earn over 20 Hive you don't get charged a power up tax because "curve". I'm supportive of this only if it is applied to payouts over 30 - 40 Hive.

I would even suggest cranking it upto 35% tax WHAT A 35% tax! Yes. To stop the massive funnel where people keep upvoting big stacked players that produce crap content in the hopes to get their attention for an upvote.

Implementing a tax on the top end will enable a better distribution of upvotes outside of circle jerks. It is the number 1 thing you can do to build a better economic system on Hive. But it's not being proposed because guess what. No one wants to give up their stack or games but they will focus on taking from others. It is human nature.

We create a system to negate the crap one we're in but only to create the same...... we like to blame politicians but it's not the politicians when you remove them from it and here we are, same outcome.

Switch a Power up tax for a top end curve and I'll support

Culture is you're biggest impact on the community, if you want to grow the token you need to grow investors not provide them a quick exit that can be gamed and creates a culture of Pump and dump which has been so bad for the rest of the cryptocurrancy world.

Hive is an expensive token, for an infinite supply sitting at its current price is huge. 40c+ Infinite = bigger market cap than bitcoin. Seriously...

Fear still controls the network with all previous gaming systems used to create some megalomaniacs and no safeguards.

What investor is going to want to put their money at risk? This is all public and if you searched it would come up.

We need a focus on block chain culture

Conclusion

I don't want to knock anyone about these proposals. They're great and shows people are really focusing on further developing the block chain to be successful and we need these discussions otherwise we remain stagnant.

The tax proposals I can see are a build upon of new RFI which is fantastic and I can see how it fits with Hive being an infinite supply. But Hive is 4 years and we are too late in the game for an RFI model. There needs to be measures to ensure people don't rort it.

The comment point of "its my money why can't I unlock it" isn't a valid one in my opinion and people need to stop looking at it this way. No, no it isn't you're money.

Your money is being generated from our money and the system is just giving some a greater slice to our money than others.

The focus is not on the individual and shouldn't be. It is on the block chain and the above proposals are shifting the focus away from the block chain and its community and providing further inequality and power to the top.

This is the failed economic system of neo liberalism.

But what do I know? I just do this for a living.

What are your thoughts, do you agree with my points or disagree?

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