InsureDAO Improvement Proposal #2 - ‘The taxation of the testnet airdrop claims’

TL;DR

• We are proposing the taxation of the testnet airdrop claims
• The tax rate starts at 50% and will decrease linearly to zero over the tax period (90 days)
• Accumulated tax will go to the community treasury
• Users can choose either:
  • User Option 1: Claim INSURE with paying tax; or
  • User Option 2: Lock INSURE into vlINSURE staking pool without taxation.

https://commonwealth.im/voteescrowed-insure/discussion/4079-insuredao-improvement-proposal-2-the-taxation-of-the-testnet-airdrop-claims

In order to solve the inflation problem, we would like to propose to set the tax rate for airdrop claims, decreasing over the determined period.

Airdrop claimable period: 180 days (6 months)

Tax period: First 90 days (3 months)

Tax rate: We will set the tax rate of 50% at the beginning of the tax period. This figure is the starting point, and the tax rate will decrease linearly to zero over the tax period (90 days).

Where tax goes: As for the tax destination, taxed INSURE tokens will be distributed toward the community treasury, and community treasury will be utilised by DAO governance in the future.

User options: When this proposal is passed and implemented, users will have 2 options either claim to INSURE with taxation or to lock their allocated INSURE into the vlINSURE staking pool without taxation.

User Option 1 "Claim INSURE with paying tax"

Users need to pay a certain amount of tax to claim airdropped INSURE during the tax period. Users can claim their allocated token fully without taxation after the tax period ends, but users need to wait for 90 days.

E.g. If you are qualified for 1000 INSURE airdrop, you can only claim 500 INSURE and need to pay 500 INSURE as the tax on day 1, while you can claim the full 1000 INSURE after 91 days.

User Option 2 "Lock INSURE into vlINSURE staking pool without taxation"

Users don't have to pay tax for their claim or wait to claim till the tax period ends if they lock their allocations into the vlINSURE staking pool.

E.g. If you are qualified for 1000 INSURE airdrop, you can claim 1000 vlINSURE, which is a token representing permanently locked INSURE, from the beginning.