MCP-2024/3: Discussion Proposal: Removal of iTax Function

Dear $MONSTA Community,

After extensive discussions and feedback from various stakeholders, team members, and developers, we are presenting a proposal regarding the future of our project: the removal of the iTax (inactivity tax) function in its current form. This proposal is a response to the sentiments and concerns voiced by our community and as such, we present it as a discussion proposal.

Background

The iTax function has been a subject of ongoing debate within our community. We've listened carefully to your feedback and concerns regarding its impact on user experience and the overall narrative of $MONSTA. Many of you have also expressed the desire for a simpler and more user-friendly protocol.

Rationale for Removal

The decision to propose the removal of the iTax function stems from our commitment to address the concerns raised by the community. We recognize that the current iTax system may be overly complex and could potentially discourage new or existing holders from fully engaging with the protocol. By removing it, we aim to foster a more welcoming and inclusive environment for all $MONSTA holders, one where they are rewarded for their activity versus being punished for a lack of it. While we may not have all the solutions prepared for the ramifications of its removal, we believe it is essential to prioritize this change to create a more welcoming environment for all $MONSTA holders.

Impact of Removal

The removal of the iTax function will undoubtedly have significant implications for our protocol and community. While we acknowledge the need to address these ramifications, we believe it is crucial to take this first step towards simplification and user-friendliness while remaining cognizant of the impact it may have on protocol metrics such as Token Burn (Deflation) and Vault Asset Accrual.

Next Steps

Following the removal of the iTax function, we will actively work with the community on developing replacement mechanisms to address the potential loss of token burn and vault accrual. This process may involve adjustments to final vault calculations for inactive holders, the introduction of a new proof-of-life system, or other mechanics suggested during community discussions. The goal will be to keep things simple while finding effective solutions.

Voting Process

This proposal is a culmination of community discussions and feedback. As such, it is essential that all $MONSTA token holders participate in the voting process. Your voice matters, and your input will help shape the future direction of our project. We value your feedback and insights, and we believe that together, we can create a stronger and more resilient $MONSTA ecosystem.

Vote “YES, REMOVE iTAX” if you want to see the current iTax system removed immediately. Additional cycle end improvements or activity based rewards systems will subsequently be discussed and a final solution voted on and implemented at a later date, prior to cycle 2 end. Vote “NO, DON’T REMOVE iTAX” if you don’t want to see any changes surrounding the current iTax or activity based systems

Conclusion

This discussion proposal will remain open for a period of 7 days to allow the community time to discuss and cast their vote at which time a final and formal snapshot proposal will be issued.

Let's continue this journey together and work towards a future where $MONSTA thrives as a beacon of innovation and inclusivity.

Sincerely,

Monsta Corp.