Historically, power has shifted from the government to the people. Democracy is the product of revolution and subversive innovation by those who hate the elitism of aristocracy and monarchy, who fear the theocracy’s consensus, and who see the impossibility of communism. More than ever, governments are presenting more just and distrustful social contracts. How can we combine the rule of law with the principle “the law is the law” and can we have both?
When we see the irresistible power of decentralization, we must realize the following: mass communications, transcontinental travel, literacy, the spread of the Internet, the pro-democracy movement, and the emergence of a temporary job economy.
Liquid taxation: individual control, instant gratification, real-time impact
The tax problem lies in the contradictory tensions that arise between governments and voters once a year. As a result, we finance high-ranking officials whose judgments we trust less than our own. The solution for us is to monitor our social contributions in real time, on the same streets we walk, with other members of the community as collaborators locally. Web3 is an opportunity to make taxes smart, create a sense of community through economic power, and enjoy paying taxes rather than being afraid to take action. Liquid taxes work as follows.
Imagine that at the beginning of the year you receive an estimated tax return based on your income and net worth. This score is loaded into your municipal crypto wallet. During the year, when you see issues that need to be addressed and reasons to support them, send in the amount you think is worth it. If you want, you recruit friends to contribute with you in the form of taxes. If you see something that needs attention, create a fundraising group for that issue as a crowdfunding platform.
When people decide for themselves the appropriate problems and solutions in their neighborhoods, where they raise families and go to work, the effect is easily measurable and immediately satisfying. When local issues are resolved so quickly and effectively that they do not need to be addressed at the national level, there is a sense of community. At the end of the year, each person is given a summary of how they contribute their finances, how much they are estimated to spend in taxes, and what social benefits they are entitled to. Thus, taxes are introduced in real time as an instrument of floating democracy. Localities are insulated from time delays, human error, asymmetric information, and bureaucracy from high-level governments.
If you do not use the tax calculation, the difference will be passed on to your local authority, which you can use at your discretion. If you spend more than you actually owe in taxes, you will get your money back. If you wish, you can delegate your treasure to a friend or family member whose judgment you trust. If this all sounds like a decentralized autonomous organization (DAO), it’s because of the possibility of introducing liquid taxation.
Related Topics: Decentralized Autonomous Organizations: Tax Issues
Smart Contract Procurement: Automation, Scalability, Cost Efficiency
Government spending is inefficient due to bureaucratic fragmentation. By automating the negotiation of procurement contracts between service providers and government agencies, we can save government money and help big companies make more money.
It helps everyone distribute effective products and services from city to city, state to state, and department to department. Smart contract purchasing can also automate and coordinate termination terms and compensation when something goes wrong. In a Web3 world, procurement will not be handled by redundant and inefficient legal, political, and bureaucratic teams.
Smart contract procurement is much more profitable and competitive than what we have today. It is also a flexible tool for public actors who often receive less than they deserve from the private sector. In addition to this system, we can offer smart contracts and municipal aid microbonds that raise discretionary funds to solve local problems.
Related topics: What are smart contracts in blockchain and how do they work?
Multicurrency monetary system: from physical to digital, from national to local
The problems with physical currency are well known. Cryptocurrencies offer superior traceability, security, privacy, and ease of management. The problem is that central banks issue a single currency for different jurisdictions.