Tax
Harberger Tax
Citizens have to self-assess the value of their land and pay taxes on that self-assessed price. Anyone, at any time, can purchase the land from citizen according to the self-assessed price, thereby taking the right of use of the land. The new user then sets their own price.
Formula of Harberger Tax
Dankverse’s Tax Collection Mechanism
Taxation is not only to maintain public goods, but also plays the function of balancing income. Through the Harberger tax mechanism, it can effectively restrain capital monopoly, correct the Matthew effect of the rich getting richer, and achieve a justice redistribution process.
The tax rate only needs to be slightly lower than the turnover rate to achieve the effect of balancing investment efficiency and allocating incentives, which is not artificially customized, but depends on the frequency of transactions at every second, that is, the popularity (or rarity) of the commodity, so the transaction price can always be maintained at an appropriate level. Goods always go to willing and capable buyers.
Force Sales Mechanism
Buyer Offer
Buyer submits a quotation to the target land and deposits a margin.
Seller Offer
Seller can accept the offer, or self-assess the price again and supplement the margin in order to maintain the right of use.
Margin
Buyer’s Margin
Land Margin
Tax Collection Margin
Execution Time Limit
The execution period is 7 days after the quotation is submitted.
Within seven days, the seller can raise the self-assessed price and submit a full deposit.
The buyer can continue to increase the price and supplement the margin according to the sellers' new self-assessed price.
The quotation round is three times, and the transaction will be forced after three times.
Recovery Mechanism
Land that has not paid taxes in three cycles will be reclaimed and re-auctioned by the system.
Universal Basic Income (UBI)
In Dankverse land, virtual land is public property, and citizens have the right of use rather than ownership. When a citizen “own” a land, citizen is required to self-assess a price for that land, and then pay tax to the system based on the price. The Harberger tax collected will be used as the basic fuel to maintain the UBI system and guarantee revenue.
When a new blockchain account mint a virtual land, the system will create a UBI permission for their land through smart contracts, that is, the UBI qualification can be obtained by obtaining land.
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