Crypto assets for liquid democracy: The future of public finance
Power historically shifts from governments to people. Democracy is the product of revolution and disruptive innovation by those who abhor the elitism of aristocracy and monarchy, who fear the single-mindedness of theocracy, and who see the impracticability of communism. More than ever before, governments represent fairer and more trustless social contracts. How do we merge the rule of law with “code is law,” and can we have both?
As we behold the unstoppable force of decentralization, we must acknowledge the following: mass communication, intercontinental travel, widespread literacy, internet proliferation, pro-democracy movement, and the emergence of gig economies.
The problem with taxation is the adversarial tension that arises between governments and constituents once per year. We end up funding high-level officials whose judgment we trust less than our own. The solution is for us to control our societal contributions in real time, in the very streets we walk, with fellow community members as co-creators at a local level. Web3 is a chance to make taxes make sense, to build a sense of community through economic power, and to enjoy paying our taxes instead of dreading the act. Liquid taxation works in the following way.
Imagine getting an estimated tax assessment at the beginning of the year based on your income and net worth. This assessment is loaded into your municipal crypto wallet. Throughout the year, as you see problems to solve and causes to support, you send whatever sum of money you feel is worthy. If you want, you recruit friends to contribute with you from their tax pools. If you see something that needs attention, you create a funding pool for that issue like a crowdfunding platform.
As people self-determine
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