CMV: Gas fees are equivalent to taxes, and if the government adopted a transparent blockchain-based cryptocurrency DAO we could eliminate taxes and fund government services through a crypto standard.

This, in my mind, is the ideal future for humanity and it’s adoption of crypto.

If the government had a transparent proof-of-stake mining system running, they could use the transaction fees as a “tax” to fund all government services.

They could even stake a certain amount of coin in different branches of the government, which would allocate block rewards proportionally to each branch depending on how much they have staked.

The people could also have some sort of UBI by allocating a portion of each block reward to each citizen.

I truly feel this is the long term future of crypto and what we need to be striving for.

Edit: I’m just trying to think of a good use for these CBDCs. Maybe the government comes out with their own coin that is proof of stake, they are the original large stakers, but anyone else can also stake and use the system too? And it could easily be a stable coin because the government could allow you to exchange for paper fiat at any point in time (which is still unfortunately sometimes needed)

Edit2: I’m realizing now that allowing anyone to stake into this system could allow foreign actors to maliciously stake large amounts. So maybe that shouldn’t be a thing?

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21 thoughts on “CMV: Gas fees are equivalent to taxes, and if the government adopted a transparent blockchain-based cryptocurrency DAO we could eliminate taxes and fund government services through a crypto standard.”

  1. >if the government

    Let me go ahead and stop you right there. The government looooooves that we don’t get a clear picture of how it spends our money.

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  2. You might be onto something.

    We can make it so that any changes on the blockchain or an trasaction will be paid in fees that is then treated as the tas paid by the person.

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  3. Gas fees aren’t taxes, it’s the cost to power an inefficient engine.

    Food powers horses.

    Gas/diesel/coal powers an engine.

    Coal once was king, but its now outdated. Gas and diesel are on their way out as it will no longer be competitive against newer engines.

    The better the engine, the more efficient it is to run.

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  4. We’re closer to web 1,000,000 matrix than governments adopting blockchain. Most government agencies are still using binders my friend, they haven’t navigated to excel yet.

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  5. There are secret government organizations involved in national securities, espionages, criminal investigations etc. The transparency and immutable features of blockchain might not be conductive to these organizations.

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  6. There’s a reason why they don’t want a transparent financial system … they lose the edge if everyone becomes financially literate.

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  7. I, too, think that taxes should be fully public on a blockchain, and all government spending too.

    But that blockchain should absolutely NOT be run by the government itself. It must be a public one.

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  8. There is a HUGE issue: IF the government adopted a **transparent**

    They don’t want it to be transparent because they need to steal from the people without notice. Maybe they can use Monero for them and transparent for the common people right?

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  9. I agree, The ideal future for humanity is the adoption of blockchain. The concept is amazing but you are completely right, allowing anyone to stake into the system could allow foreign actors to maliciously steak large amounts. The solution to that would be on-chain KYC. Governments could build a token to be country specific with on-chain KYC and if it works, that leads to the next question. Is it scalable? Because if it works, the whole world will use it. The blockchain would have to be infinitely scalable to support that much traffic without network congestion.

    That said, I’m going to turn you on to some new technology and let you do your own DD. You will like this, it may even give you some ideas.

    HELO Blockchain powered by (Proof of Ethic )

    Great post by the way, Interesting discussion.

    Reply
  10. That would be more akin to a consumption tax, such as a VAT, GST, sales tax etc. The problem with this tax is that people who spend more of their income, such as low income earners, end up paying most of it

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  11. How will we fund for war if the government is on a fixed budget? Example, If Russia decided to invade the US. The US would need $10 trillion for defence, but they only pulled in $6 trillion in crypto tax this year. How will they fund the difference? The current system does this by taxing as much as they need from the people. The people don’t like this tax but it gives protection from emergencies like invasions.

    Reply

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