Proposal: Tax structure change frequency and governance pertaining to these

I would like to propose that we formally enact a tax structure governance rule whereby a maximum of two changes are permitted, per chain, per year. There are three components of this proposal:

  1. Restrict changes to twice per year, per chain. With a preference to change all chains, at once.
  2. Record any tax changes formally in a section on the Pawthereum website, with relevant links and rationales for the time.
  3. Permit exceptional tax structure changes in exceptional circumstances.

Why
The reason I am proposing this is to provide a level of stability for Pawthereum holders. It is a pawsibility that many holders may not be actively engaged in our communication channels. I believe that if we were to make too many tax structure changes, too frequently, it could have an effect of deterring potential investors. A bit like a central bank, interest rates should not be adjusted too frequently. However much like a central bank, exceptional circumstances may require exceptional intervention. That is why I believe a caveat of an exceptional tax structure change could be proposed by the core team, and voted on by the community.

Restrict changes to twice per year.
I believe that twice per year is a reasonable maximum for tax structure changes.
With a minimum effective period of 3 months. Locking any further changes for at least 3 months.

This would give investors a minimum 3 month window to check back in with the community to review any changes.

I propose that the calendar year begins on the 1st of the month, in the month that this proposal is accepted and enacted.

I also propose that we change all chains at once, to keep it simple for our investors.

Formally record tax structure changes
Lets record these changes, formally. On the website, or in the forum, or both. Future investors may want to review our decision making process, why did we do this, and when? Lets have an audit trail. Provide links to a forum section on Tax Structure? Proposals and Vote’s.

Exceptional circumstances
I have trust and faith in the Pawthereum core team to make the right decisions, at the right time. I understand that in certain market conditions it may be necessary to over-rule this tax structure rule. Either by additional tax structure changes, or by nullifying the 3 month rule. or anything else that has not been considered by me at this stage.

If a majority (50.1% +) of the core team agree that an urgent change is required, it can be put to a Proposal vote within the community.

Feedback

I welcome feedback and suggestions to this proposal.

Gary

Thank you for the very well thought and formed proposal.

In summary you propose to only change the taxes maximally 2 times a year where the minimum effective period is 3 months but with the exception of circumstances that overrule this tax structure rule. I would agree with this.

I’m actually more interested in recording the tax changes and making it so that the new members (as well as the old ones) would be able to clearly and easily look into the changes and the reasons behind it. Would love to talk more about the best way to make this happen. We have previously brought up the major points and then announced the changes in our medium articles but it makes perfect sense to collect them in one place.

Thank you @nawa .

Yes that is a perfect summary. And of course tweakable in the future when our project grows. But I see it as a good framework to begin with. Something that gives some certainty to current and future pawth holders.

The recording of changes is something I am keen on too. Profesionally I work in an environment where such decision points, how we arrived at them, and the outcomes are actually regulated instruments. And I believe we should operate on a similar level. It just brings professionalism, accountability and tracability to the Pawthereum ecosystem.

How that is achieved is a good topic of conversation and I have a few broad ideas, but nothing concrete. Maybe its something that could be rolled into our project milestones depending on its complexity.

One idea, is we could actually store the decision point information and outcome as an NFT in one of the pawthereum wallets? This would also mean it cannot possibly be modified, altered or tampered with and would last as long as the blockchain existed. Of course a cost here. But ultimately, say the website died, or even the project etc, as long as the blockchain lives, so does that particular artifact. It also ticks the crypto usability option. I dont get why more projects dont do this. Maybe there is a good reason why that I am not thinking of.

In addition to that, or maybe just on its own if the above won’t work. I feel a section on the website would cover this well. Not just for Tax structure changes, but for all proposal outcomes, and decision points made by the team. Wrapped around a simple templated format.

Date
What we did
Why we did it
Who was the driver of this?
What we hope(d) the outcome could be

I am not sure what to call it. Pawdit? PawthHistory?

Just some ideas, would love to hear your thoughts and anyone else who can chip in.

I like the idea of capturing the history as an NFT. It would incur a cost but at least makes the history immutable. We could create it on the official Pawthereum Opensea (perhaps as a soul bound token) and transfer it to the Pawthereum contract.

1 Like

There are 2 points that you brought up. Recording the information as an NFT and then the structure of the recording. I’m really interested to research what kind and how much information and data can be recorded in an NFT without sacrificing the simplicity and the goal of this move.

What I’m thinking about as writing this is that a dedicated section in our website might work the best.

Let’s call it PawStory

The core idea being close to this: the medium article where I collected the major milestones into a single article: Pawlicious update. Hey Pawtherians! | by Pawthereum | Pawthereum

I’m sure there are a lot of people interested on how things progressed to the current situation and as seen by that medium article, even though it’s only the major milestones that was posted it can amount to a really long page. I can visualise a system that could work but not sure if I’m able to explain it best but I will try:

The page would have a lot of bigger points that can be extended by clicking on it. Let’s have an example of a monthly progress:

October/2022

November/2022

December/2022

It only shows those points (to keep it simple and user friendly)

All of them included bullet points, example:

October/2022

  • Launch
  • BigONE listing
  • My.Pawth Launch

By clicking them it shows up a paragraph which explains what happened then. For most of them it would be enough but for some it may link to the medium article or somewhere else where the user can learn more about it.

Being that there are a lot of different bullet points consisting of a lot of different subjects it might be helpful to assign categories to them. This is where the technical solution should be researched but I wouldn’t be surprised to learn that something like this has already been developed.

Categories are:
*Donation
*Tax Structure
*Proposal
*Vote
*Development
*Partnership
*Core team changes
*Legal entity changes

A post can be included in multiple categories

Not only it makes it more user friendly to understand the content of the posts just by seeing what category it’s included in, you would be able to just click on the category to only see those points in the PawStory.

Want to find all of the Donations easily? Click Donation category and see only those posts. How about Tax changes, likewise click that category to find out. I think this would be really beneficial for the other projects and people looking into Pawthereum to understand what has happened.

To manage the cost, and also give some regularity to it, we could store a quarterly “Pawth Capsule” of everything that happened in the last quarter? This way the costs would be expected, reasonably known and could be factored into budgets.

What appeals to me here is actually making use of the blockchain. Even in the event that we cease to exist. Which of course nobody wants, but to me that is the love affair with the blockchain.

I like the PawStory method. It cannot be that difficult to do. Even if it is difficult it’s a good concept.

As a new or existing investor you can quickly flip through the pages of history, by date or category.

It demonstrates transparency above all else. We should not be afraid of our past, and lessons we learn from it, even if the proposed thing didn’t have the expected outcome.

When I look at many other tokens, the sites feel very similar, from the same template. Its always a challenge to uncover the history of how they were born, where they have been and how they got to where they are today. I think we can do better than those templates.

At this point maybe we seperate the PawStory from this thread as its own idea.