First, if you read the title and are ready to rip into me about being double taxed please stop, take a deep breath, and relax. This is easy to address. If you really care about breeding there is really good potential in this idea.
Stash out tax, a big one. Let’s not get too fixated on the number too soon, explore some ideas with me first.
Double tax. This is really simple. Just for an example with easy numbers lets say the tax is 50%, adjust breeding costs to half (50%) of what they currently are. 50 RBW to breed becomes 25.
Ok, double tax solved. But that does create another situation, breeding is now 50% cheaper if you buy RBW and stash in. But is that really so bad? People buying RBW sounds rather good. And 50% is rather high for a tax, remember we used that number to make examples easy to understand.
Ok, things are getting a bit complicated. Why go through this?
Incentives. Reward desired behaviors and do whatever the opposite of reward is to whatever the opposite of desired is.
Take a few deep breaths, maybe reread the above and think about it for a bit.
Ok, great, put those thoughts aside for a moment.
Let’s chat about ‘exit liquidity’ for a bit.
ROI (Return On Investment) Bros need a way to ‘cash out’, right now that seems to be RBW and UNIM.
Another way to cash out is to sell Unicorns or Keystones. But nobody is really doing that right now because they cost more to make then you can sell for and require more effort from the player.
Question time. Does the game / community need lower RBW and UNIM prices or more Unicorns and Keystones listed for sale?
Right now the incentives are set up for lower RBW and UNIM, less listings.
Stash out tax has the potential to reverse this.
I know of at least one project doing really well with a 30% withdrawal tax. They don’t have the added complexity of needing their token on chain to mint but I think we can work around that.
Let’s say giving people stashing in a discount on breeding isn’t acceptable. The game server knows how much you have stashed out and when you breed or evolve. Should not be too hard to implement a tax refund equal to the taxable amount of the breeding or evolution costs. But now we are not incentivizing buying RBW and stashing in, and it is more work for the developers.
Wow, all that about the double tax ‘issue’.
Let’s talk about the tax itself.
For now let’s think in terms of 30%.
Anyone like the idea of a ‘flat tax’ in real life? Me neither.
How about incentivizing certain activities?
What if one or more things give a tax discount? That game I was referencing cuts the tax in half for LP providers. Hmmm.
What if certain badges gave you a bit of a tax break? What if the LG IRS department gave different tax breaks for different badges depending on what, and for how long they wanted to incentivize. And it changed as needed?
There is some really interesting meta in this set of ideas. I encourage people to offer improvements where possible and only bring up downsides if they truly invalidate the concept, as in the downside is worse than the upside. Lets not throw out the Baby Corn with the bath water.