This is a thread to discuss the governance vote that will open shortly to reduce or remove taxes across our seigniorage protocols. If you don’t like taxes now’s your chance to have your say!
Taxes are in place for our PegHub+ Advanced protocols bitBomb, CZPegs and SnowPegs for selling or transferring peg tokens while below peg. Although implemented at the request of our community, after an extended period of challenging market conditions, we’ve seen increased feedback from investors that they feel taxes are too high.
The current rates are shown below:
The vote has 3 options:
- Leave taxes as they are
- Reduce taxes across all PegHub+ Advanced protocols to 10% (5% burn + 5% tax)
- Remove taxes across all PegHub+ Advanced protocols.
The PHUB holder snapshot will be taken on Tuesday, September 6, at 21:00 UTC.
There will then be a formal 24-hour window for community discussion starting: 21:00 UTC, September 6.
The vote will be open for 24 hours starting: September 7 at 21:00 UTC.
Looking forward to seeing what the community thinks about this one!
Please discuss and leave feedback here so everyone can make an informed vote
I think taxes are a double edged sword… Major hindrance factor at present to invest in peg tokens is taxes… In bleeding market ppl are worried about roi…
I think the taxes are way too high at the moment. They are a good tool during a bootstrapping phase to reward the community later on and take a cut of those that take advantage of the high initial APRs. I think the current setup keeps people out of the protocol once the bootstrapping phase is done. Even I am hesitant to invest with the tax setup. It also depends on the objective of taxes. I am not opposed to small taxes that go back to the community but out of the 3 votes I would say no taxes as the second option is still high. At the end of the day we need to attract capital rather than focussing on “punishing” sellers.
Removing taxes is risky. However, reducing them to attract more investors is a smart move
I would like to see us remove all taxes. This will make investment in the protocol tokens more attractive to new investors and make holding peg easier, as it would no longer create this pressure to sell tokens immediately after we get above peg for fear that another tax-free opportunity may not arise for quite some time. There might be some selling once taxes are removed but buying will be more attractive and hopefully more than offset the selling.
I believe tax is only good in genesis/bootstrap period, after that, tax would create this psychological effect of fearing others would sell once tax-free so “i’ll sell first”
I would love to see all taxes removed. In the current investment sentiment, it is essential to incentive new investors and not creating barriers for people to invest. When people see that our protocol is currently mostly under peg, sell tax under peg make our protocol more risk for investment.
Removing taxes can also help mobilize CZpegs and bitBombs since our community and new investors are more willing to invest in some of those without fear of “trapped” in the protocol.
Removing taxes can also help recognizing issues earlier in the protocol. What works and what not. This can give us opportunities to work on remedies to strengthen the protocol.
Option 2 but with Circuit breaker mechanism to prevent panic sell.
An advanced circuit breaker is implemented in the contract: If price is reduced 1% in 1 hour (tba), the sell tax will be set to 25% automatically in the next hour. This will prevent panic sell and bring people time to consider their panic decision.