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    "comment": "# Decrease Treasury Tax from 20% to 10%\n\nMy vote for the proposal to decrease the treasury tax from 20% to 10% is **NO**. Below is my rationale.\n\n**Github Link of this file**: https://github.com/kostaspanagias/drep/blob/main/voting/2025/2/taxratecut.md – You can visit this link to view the formatted version of these contents. The GitHub page provides a more user-friendly and human-readable format compared to the on-chain or Cardano Explorer metadata.\n\n## Rationale\n\n* **It's easier to reduce the tax rate than to increase it.** If we reduce the tax rate now to the lowest permissible amount and later find that the treasury is depleting faster than anticipated, it would be more challenging to increase it again. \n\n* **The proposed decrease is too rapid.** I would prefer a more conservative approach, where we gradually lower the tax rate (e.g., from 20% to 18%, then to 15%, etc.), evaluate the results at each step, and proceed cautiously with further adjustments.\n\n* **The impact on staking rewards is minimal.** Current staking rewards are below 4%, with a more realistic range of 2.5%–3.5%. A 12% increase in rewards would bring them to approximately 2.8%–3.9% (a net increase of just 0.3%–0.4%). **I fail to see how such a small increase would attract users from other blockchains** to join Cardano solely for staking rewards.\n\n* **There is insufficient research supporting this move.** To my knowledge, no research, paper, or detailed analysis has been presented to demonstrate the potential impact of this tax reduction or simulate how it might deplete treasury reserves over time. Without proper data, **it's difficult to assess whether this change would have a minor or significant impact on the treasury.**\n\n* **We need substantial funds for development and marketing.** Blockchain technology is still in its early stages, and I anticipate that we will require significant resources for development (e.g., scaling solutions, quantum resistance technologies) and marketing (e.g., driving adoption, improving communication, educating users). A higher treasury tax ensures a steady flow of funds to support these critical needs.\n\n* **This is our first year managing community funds.** As a community, we are in the early stages of learning how to govern ourselves and allocate resources effectively. Inefficiencies, errors, and potential misallocations are inevitable as we refine our processes through trial and error. This is not about wastefulness or bad actors – it’s simply part of the learning curve.\n\n* **Startups reinvest profits; so should we.** Drawing a parallel with startups: In their early stages, startups typically reinvest profits rather than distributing dividends until they establish themselves within their markets and industry lifecycle. Similarly, Cardano should prioritize reinvesting transaction-generated funds into growth rather than increasing \"dividends\" (i.e., staking rewards). These investments will position us as a leading blockchain in the future, where an **increased number of transactions** and price appreciation will more than compensate for our early investments.\n\n* **Increased staking rewards do not encourage network usage.** Even a small percentage increase in rewards at this stage promotes inertia rather than active participation in the ecosystem. Cardano offers exciting opportunities for participants to engage meaningfully: earning yield in decentralized finance (DeFi), participating in DAOs, trading NFTs, engaging with memecoin communities, using decentralized exchanges, and exploring real-world assets and decentralized applications (dApps). Active participation helps users understand blockchain's potential, educates the community, attracts new users, and drives adoption. This increased engagement will boost network utility and ensure sustainability – both in terms of transactions generating tax revenue and actual usage."
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