Vote #2 - Keep the Tax or Remove the Tax

We received a general consensus from the community when we discussed introducing a tax for Toshi to help build the treasury. This happened during our relatively early stages when volume was very low. Since then, Toshi has seen incredible and completely organic growth.

At the time of migration to our new contract, we were always clear that taxes would be a temporary tokenomic. Toshi's organic growth has preceded many of our planned roadmap items, hiring processes, and development. When considering the current state of the project, we see the opportunity for two successful strategies.

We could keep the taxes for a larger treasury to be able to aggressively coordinate continued growth, or we could remove the taxes now and maintain a budgeted and calculated-risk growth plan. We recognize that the community may feel strongly about either option, and your voice counts.

Today we propose the second Meow DAO vote, allowing you to determine whether Toshi removes the tax, or whether we keep taxes until the treasury hits 1000 ETH (we’re currently sitting at 500 ETH). Once the tax is removed, now or later, we will migrate the liquidity from our current V2 pool to a V3 pool.

This vote will run for 8 days to allow people who aren’t around this week due to holidays or other reasons to still have a full day to vote next week. In the scenario where Option 2 has the majority of votes early on, we will begin conversations with the various DEX options on Base to determine where we potentially migrate our liquidity to, allowing us to move quickly once the vote ends.

It is worth noting that before writing this proposal, we carefully reviewed our expenses and can achieve our goals with the current treasury, currently budgeted for over 2 years within a low-risk tolerance. The purpose of having a 1000 ETH goal is to give the core contributing team and the upcoming Toshi Council leeway to consider higher-risk expenses.

Option 1: We keep the tax until the treasury has 1000 ETH (currently sitting just over 500 ETH), at which point we remove the tax. This allows us to consistently build a treasury that will sustain the project and promote accelerated growth for multiple years. It also gives the foundation the ability to hire a relatively large team and allows Toshi to expand with greater freedom while taking on higher financial risks.

For clarity: we are talking about an inflow of 500 ETH into the treasury from the start of this vote. We will have continuous expenses for the project that we will take into account as we may never hit 1000 ETH in the treasury total.

Option 2: We remove the tax and migrate to a V3 liquidity pool. We will continue to build the project with the planned budget and focus on building the brand with the resources in our existing treasury, v3 trading fees, and market maker.

This approach will require slightly more cautious spending and likely a smaller team within the foundation. However, we expect to have slightly higher trading volume being a 0-tax token, which could still provide significant revenue through trading fees coming from our V3 pool.

Final Notes about V3 LP - Uni V3 is used by almost all DEXs with V3 technology, it introduces a strategic advantage for projects like ours by allowing for more precise liquidity management through what's called concentrated liquidity (also known as bands). Unlike V2, where liquidity is dispersed across a wide price range, V3 enables us to focus our liquidity within specific price intervals. This means we can better support the project's trading activity by aligning liquidity with the most active trading ranges, enhancing price stability and efficiency. For the project, this targeted approach can lead to more robust and reliable market conditions, fostering a healthier ecosystem and potentially increasing the project's attractiveness and utility.