CIP-6: Guild Tax minimum or deregulation

Summary

The holders of Captain & Company ships (the “Shipholders”) propose lowering or deregulating the minimum Guild Tax rate and allowing all guilds to set their own tax rates. This proposal repeals and replaces the results of CIP-5 and CIP-4.

The Guild Tax dictates the percentage of in-game and quest rewards that guild members send back to the Guild Treasury as they complete objectives and acquire loot.

Important notes:

• The Guild Tax is the amount the guild's assetholders keep.
• Players utilizing guild assets (Captains) keep the complement of this rate, e.g. if the Guild Tax is 20%, then 20% goes back to the shipholders, and the actual player keeps 80%.
• Players who do not utilize guild assets (Company) are exempt from the tax.
• Guilds will be able to set any tax rate over or equal to the minimum tax.
• Shards-related tournaments will still split 10% of their winnings to Fraction holders for PvP tournaments only, which is deducted from the guild tax share.
• If a 100% tax rate is chosen by a guild, note that Captains will not receive any in-game rewards or tournament rewards, as they will all be sent to the Guild Treasury for the shipholders.

This proposal seeks to revoke the results of CIP-5 and CIP-4 and instead either implement a new minimum tax rate or deregulate the tax system entirely.

Rationale

Players have expressed concern that high tax rates (e.g. 50%+) make it unrewarding to play the game, and therefore keep them from participating.

Additionally, guilds each have unique compensation strategies and may variably recruit players using in-game or out-of-game compensation. However, a number of guilds have contested that a 0% tax rate will begin a "race to the bottom" in which no guild is able to charge a tax.

Therefore, a smaller but over-zero minimum tax rate may be preferred by the majority of guilds.

Implications

• The minimum Guild Tax may be adjusted to either 10 or 20%
• The minimum Guild Tax may be removed entirely
• The results of CIP-4 and CIP-5 will be repealed

Options

1. 20% Guild Tax minimum
2. 10% Guild Tax minimum
3. Remove Guild Tax minimum

Test Cases

n/a

Whitepaper

https://docs.capnco.gg

Copyright

Copyright and related rights waived via CC0. https://creativecommons.org/publicdomain/zero/1.0/