Open Discussion for next Community Tax Change

Hi All,

I would like to open discussion here to the wider community and ask what you all think the next Community Tax Change rate will be? plans on submitting a Community Tax Param Change Proposal a week or so before we have reached our “Milestone Requirement” for the swap.
(As it takes a while for voting period to close & execute param change)

Currently the community tax is set to 75%, we all know this was done for funding the swap which will cost 422,000 SCRT according to this Milestone.pdf published on proposal #4.

My question to you all is: What do you think is a fair tax to implement once we achieve our 422,000 SCRT in the community pool? As I think keeping it at 75% is too high.

Here is an example of rewards a SCRT would get per year with current 75% tax in place.
If you hold 20,000 SCRT and delegate it to a validator with 10% commission (10% seems the avg right now)
You would receive 800~ SCRT per year in rewards.

My Opinion is to lower the tax rate to somewhere between 5% - 20%.

at 20% tax: A SCRT holder with 20K SCRT delegated will earn 2900~ SCRT per year.
at 15% tax: A SCRT holder with 20K SCRT delegated will earn 3070~ SCRT per year.
at 5% tax: A SCRT holder with 20K SCRT delegated will earn 3500~ SCRT per year.

These are reasonable tax rates, and much higher than Cosmos’s. Their’s is still at 2% tax. With the above proposed community tax rates, we can still fill our Community pool nicely and make sure the community and SCRT holders receive a decent ROI on their holdings.

This is an open discussion. We would like to hear what you think and your opinions on the matter.

Don’t be a stranger! Come say Hi in our telegram!

1 Like

I would suggest waiting to see what proposals get passed before dropping too low, but 15% sounds reasonable

1 Like

I would support keeping the tax at 75% for now. I believe it’s beneficial for the network to have a meaningful community pool that is not circulating, and can be used in the future to fund all kinds of developments and community efforts.

To be clear, this is my personal position.


Hey Guy,

Thanks for replying and being the first to respond with an actual reasoning.
Im curious, considering your personal position on this matter, why didn’t Enigma Core Team create a meaningful community pool amount in genesis ?

1 Like

Why should a specific entity get any special benefits? Decentralized governance should imply that it is the shareholders that through a democratic process decides who receives funding for developing the protocol further.

I’m also in support of it remaining at 75% for now. It’s really a decision that might be best made after the community has reunified anyways so I hesitate to lower until that day comes. I’ll be following the discussion closer & participating when that day comes.

1 Like

While your statement is correct. This chain is far from being what the white paper said mainnet would be… therefor enigma core team still are key to development at this time and require special benefits in order to release what they set out to from the beginning.
In the future of course, your right that it will be beneficial for funding and developing the protocol further once Enigma core takes a step back and allowing other developers to proceed in any direction that the community sees fit.


Agree that it should be set at 75% for some time to build a meaningful pool. This was in our plan. It’s hard to determine what the correct numbers should be before a swap and additional tokens enter the ecosystem in my opinion. I don’t think we need to rush into decisions at this point in time. Also just to be clear the Enigma team did not unilaterally make any decisions at launch of the new chain.

1 Like

I agree with you, and I would personally vote for the Enigma team to continue the development of the protocol; however, I will respect any majority decision made by the shareholders.

We discussed this internally before the genesis of enigma-1. We went with the defaults for most params because we decided to see what the community wants via the gov module.

I think this was a good decision, see and, and I’m sure we’ll see more param fine-tuning as the network matures.


The pool is not designated for the Enigma core team. Quite the opposite, it’s part of the community-owned chain. It’s up for the community to decide what these funds should be used for - and as mention, I (personally) support increasing that pool to enable more decentralized development and control.

1 Like