Over the last several months there have been a lot of discussions about taxes on the secret network. I think it’s time to meaningfully continue the discussion about this, and to wrap it up and move forward.
So to kick things off I’m going to suggest new tax numbers and some reasoning behind it.
New Tax Numbers
9% Foundation Tax
4% Community Tax
With committees moving to getting funding and approval to the Community Pool from the Secret Foundation we have seen a lot more alignment within our community.
Over a short period of time this has shifted from the original vision of committees being fully funded by the chain, to some committees being partially funded by the Secret Foundation, and some committees having leadership decided centrally and merely ratified by the community via vote.
I think in the cases that the Foundation pays these leads is actually quite smart, because we have all found it difficult to fill vital roles when we solely rely on attracting the right talent for those roles from forum posts and waiting for people to show up. A consequence of this though, is a trend towards the pool acting more as a subsidy for roles that the foundation pays for.
It’s great that those roles are able to be competitively compensated with pool funds + the foundation, especially since the price dropped after the last batch of committee proposals came out. It should be noted that not all committees benefit from this. For example, the International Growth Committee and the SecretSwap committee have not benefited from extra payments from the foundation for their work.
Furthermore, one of the core things the foundation was supposed to be tasked with (exchange listings) has not been proven to be fruitful since the foundations inception nearly a year ago. Mainly for these reasons I don’t think 15% has ever been properly justified with hard data and results after nearly a year.
In my view it makes sense to increase the pool tax to make the pool able to handle this subsidy better + give a stronger incentive for things outside of just committees to use the pool. While also decreasing the foundation tax.
I appreciate all the hard work the foundation has done over the last year and believe the right people are at the foundation. So I don’t personally support any tax that is too low and I want to see their work continue while also having taxes that are fair and justified on the Secret Network.
Timing for Tax Changes
I think with IBC coming in September, that we should aim to discuss and further flesh out the numbers by October with the intent of changing the taxes then if the community supports it. My reasoning for this is that I don’t want to see this drown out the IBC launch and I recognize that there needs to be plenty of time to discuss.
I welcome all to participate in a healthy discussion about this.