Fee Structure Change Proposal
As we continue to evolve and adapt in the dynamic world of cryptocurrency, it’s vital that we periodically reassess our strategies and structures to ensure the long-term sustainability and success of Pawthereum. The community has been actively discussing the idea of changing the token’s fee structure on Ethereum to achieve this goal. This proposal is intended to address a crucial aspect of our operations: the fee structure associated with Pawthereum transactions.
Current Fee Structure:
As many of you are aware, Pawthereum currently implements two forms of transaction taxes:
- Charity Tax: A portion of transaction fees is set aside to be converted into Ethereum (ETH) for charitable donations.
- Reflection Tax: This fee is distributed among Pawthereum holders, functioning as an automatic staking mechanism.
Historical Context of Pawthereum’s Fee Structure:
Before delving into the options for our fee structure change, let’s revisit the evolution of Pawthereum’s fee system. Initially, our structure was more complex, comprising four distinct taxes: Liquidity, Charity, Operational (Dev), and Reflection. This design aimed to balance project growth, charitable giving, and rewarding our community. However, as the project matured, we faced challenges. High taxation was perceived as a barrier for new entrants. Additionally, a significant amount of tokens were inadvertently locked as liquidity, leading to a reevaluation of our approach. Consequently, the community decided to discontinue the Liquidity and Operational taxes, shifting to a simpler model focusing solely on Charity and Reflection taxes. This decision, while beneficial in some aspects, and made with noble intentions, has created challenges and led us to the crossroads we face today regarding the sustainability of our project.
Challenges with the Current Structure:
- Operational Funding Shortage: The absence of an operational (dev) tax has strained our ability to fund essential aspects like server costs, subscriptions, and exchange listings.
- Reflection Tax Limitations: The reflection tax, though innovative, has offered limited tangible value and is perceived by some as a gimmick rather than a substantial benefit.
Proposal for Fee Structure Revision:
In light of these challenges, our community has discussed a restructuring of our fee system:
- Eliminate the Reflection Tax: While this mechanism has its merits, its impact on our community’s growth and value has been minimal.
- Introduce an Operational (Dev) Tax: This tax would directly fund the development and operational costs of Pawthereum, ensuring that we have the resources needed for maintenance, growth, and future planning.
Benefits of the Proposed Change:
- Sustainable Operations: A dev tax ensures a steady flow of resources for necessary operational costs, securing the project’s future.
- Enhanced Growth Potential: With adequate funding, we can enhance our market presence, pursue new listings, and invest in technology that propels Pawthereum forward.
- Community Confidence: A financially stable and actively developing Pawthereum will bolster community confidence and attract new members.
Options for Community Voting:
In response to the need for re-evaluating our current fee structure, we present the following options for the community to vote on. Your participation in this decision is crucial for the future direction of Pawthereum.
No Change:
- Maintain the current fee structure.
- Continue with the 1% Charity Tax and 1% Reflection Tax.
- Acknowledge the challenges of limited operational funding and the debated value of the reflection tax.
Replace 1% Reflection Tax with 1% Dev Tax:
- Eliminate the 1% Reflection Tax.
- Introduce a 1% Operational (Dev) Tax to fund essential operations and development efforts.
- Retain the 1% Charity Tax, continuing our commitment to charitable contributions.
Implications of Each Option:
No Change:
- Pros: Stability in the current system and continued automatic rewards for holders.
- Cons: Ongoing challenges in funding operations, which could hinder our growth and development.
Replace Reflection Tax with Dev Tax:
- Pros: Ensures a sustainable source of funding for development and operational needs, potentially leading to greater growth and stability for Pawthereum.
- Cons: Removal of the reflection rewards, which some community members may value.
Your Voice Matters:
As we navigate these decisions, it’s essential that every voice in our community is heard. This vote is not just about a fee structure — it’s about the direction and future of Pawthereum. We encourage each member to carefully consider the options and their long-term impacts on our community and project.
Please cast your vote thoughtfully, keeping in mind the balance between immediate benefits and our collective vision for Pawthereum’s future. Your participation in this decision-making process is invaluable.
Together, let’s shape the path forward for Pawthereum.
Voting Instructions and Deadline
Vote here in Snapshot to have your voice be heard:
This vote will close on Sunday, February 11th at noon ET (5 p.m. UTC).
Thank you to everyone for participating in discussions and voting. This is another step on our pawsitive journey!
— Pawthereum Core Team
