When the concept of the ante handler transaction tax (TA) was proposed and created, the original intention was to have a 50/50 split, with 50% of the funds directed to the community pool and 50% burned. This split was carefully calculated and considered to support the development and growth of the blockchain community. However, the current split stands at 10/90, with 10% going to the community pool and 90% being burned. In this article, we will explore the reasons why it is necessary to reevaluate and potentially increase the ante handler TA split to 50/50 to better align with the original vision and address the evolving needs of the community.
The existing 10/90 split has served as a deflationary mechanism through token burning, reducing the token supply and increasing their value. While this has been effective in some ways, it also has limitations. Burning tokens permanently reduces the overall token supply, which may impact liquidity and utility in the long run. Moreover, relying solely on token burning may not provide a sustainable funding mechanism to support the needs of the community and drive future development efforts.
Increasing the ante handler TA split to 50/50 can bring several benefits to the community and the blockchain ecosystem. First and foremost, it would significantly boost the funding available for the community pool. A 50% allocation to the community pool would provide a substantial and predictable funding stream that can be utilized to support a wide range of community-driven initiatives. These initiatives could include funding for ongoing development efforts, fostering innovation, organizing community events, and supporting community members’ proposals. The increased funding can also help attract more developers, users, and projects to the ecosystem, creating a more vibrant and dynamic community.
Moreover, the increased funding from a 50/50 split can support future Layer 1 (L1) development efforts. L1 is the foundational layer of a blockchain, and continuous development and improvements are necessary to ensure scalability, security, and functionality. With more funding available, L1 development efforts can be accelerated, leading to faster updates, upgrades, and optimizations. This, in turn, can attract more projects and users to the blockchain, driving its adoption and growth.
Another crucial aspect is the potential to allocate a significant portion of the increased funding to onboarding Layer 2 (L2) solutions. Layer 2 solutions are gaining popularity due to their scalability and cost-effective transactions for decentralized applications (dApps). However, onboarding dApps to L2 often requires additional resources and support, including funding. By allocating 50% of the TA to the community pool, a substantial portion can be earmarked for supporting L2 onboarding initiatives. This can incentivize developers to build and deploy their dApps on L2, leading to a more diverse and active dApp ecosystem.
Furthermore, increasing the ante handler TA split to 50/50 can improve the predictability and stability of community funding. With a fixed 50% allocation to the community pool, the funding stream becomes more consistent and reliable. This allows for better planning and budgeting of community initiatives, ensuring that there is a steady source of funds to support ongoing projects and activities. Predictable funding can also help build trust and confidence within the community, as stakeholders can rely on a stable funding mechanism for their initiatives.
Lastly, increasing the ante handler TA split to 50/50 is a reflection of community-driven governance and decision-making. Blockchain communities are often decentralized, with various stakeholders having a voice in shaping the ecosystem’s future. By increasing the funding to the community pool, it empowers the community to have more and to be equally fair to all party’s.
Disclaimer: By Voting yes on this proposal you are agreeing to ONLY raise the ante handler split to 50/50 and leave the burn tax at the current rate to 0.2%.
Sincerely
Matts Market
