Global UBI, fully funded by a voluntary Crypto Taxation

A Moonshot For a Better World

Imagine a world…

where every financial transaction makes a contribution towards a better, more equal and socially just world
where transaction taxes can be collected on a global basis, systematically, without any admin
where all factors that make taxes unfair are removed, such as tax havens, tax deferrals, write offs, and deductions
where stock market volatility, and currency fluctuations are dampened, where commodity pricing is more stable, because large scale speculation is no longer free but carries a 1% tax. Where markets are allowed to function as they do best, but without going crazy.
with an unavoidable tax levied on every transaction, distributed to everyone on the planet. A tax that in effect took more from the very rich and distributed to the very poor the next day.

This is not a taxation thesis. It is a Moonshot towards a better world. It is however fully financed by a small tax that we propose to include in EVERY transaction, from the very large to the very small, automatically. This tax will be very different from anything you think you know about taxes. Importantly it would not be up to politicians in any one country to decide on or meddle with. It also isn't held back or used to fund projects you may never see the benefit from. Instead, this tax goes straight back to the people.

Automated redistribution of wealth is the central thesis in our project. It is a radical new way of thinking about taxation. In our proposed system, the redistribution of taxes would be immediate, as within 24 hours. And since this is a global tax, redistribution would also be global. We propose that taxes could actually be distributed equally and unconditionally to EVERY individual on this planet, on an entirely systematic, unavoidable, immediate and fair basis. A worldwide unconditional basic income, to YOU!

Benefits of the Procent Foundation's system include:

Wealth distribution from the rich to the poor on a global scale
A small tax, at least in the grand scheme of things, but with huge impacts
Voluntary participation, but designed for eventually becoming a global standard
Bring the poorest nations out of poverty
Build population registry infrastructure for/with the most undeveloped nations
Bring the benefits of Crypto to the world, facilitate acceptance and adoption
Improve on the drawbacks of Cryptos (energy consumption, security, time lag)
Building block towards a global wealth tax
Voluntary, no requirement to join, but strong built-in financial incentives to participate
Incentivizes people and companies to register their wallets, increasing the taxable base
Provides every person on the globe with a crypto wallet
Reduced financial volatility in the world

Reaching critical mass fast to become the one standard will be important. We would like to see an international heavyweight sponsor (The International Monetary Fund, United Nations, China, USA?), but are not depending on one. We believe in plentiful availability of Cryptos for various use cases. But from a global taxation standpoint there can only be one system. We would plead with anyone wanting to compete or develop a better global tax system that they either join forces with us, or develop a better system that we can join forces with, rather than attempting to create a parallel system.

This is a moonshot towards a better world. Hopefully you’ll want to participate.

“The hardest thing in the world to understand is the income tax”

Albert Einstein

TL; DR

OK, so you didn't click the button to buy and read our Book. Here is the synopsis:

We are in the process of setting up a global system designed to collect a 1% tax on all Crypto currency transactions in the world and then distribute it as Payback (UBI) to all people across the globe. Once up and running, the system will distribute Payback with a daily frequency.

At the center of the system is the Procent Foundation, a non-profit, non-government charitable organization. Our purpose is to design this automated tax collection and distribution on a global basis. There is alos a non-profit Custodian tasked with keeping collected taxes safe until such time they are distributed back as Payback.

Existing Cryptos can opt into the system, for example by soft-forking. New Cryptos can be designed specifically to participate from day one. The main reason why developers of Cryptos would opt in is that they would participate to make this world a better place. It is our belief that "Participating Cryptos" will also see many other benefits, one of which may be preferred treatment by all participating national government regulators. Another is increased valuation and utility of their Crypto because of increased global adoption as this system grows.

Taxes are collected programmatically by the blockchain at the point of time of each individual transaction. The default tax is 1% on purchases, sometimes split into 2 x 0.5% on exchanges. There is a tax reduction/exemption for moving money between your own wallets, and within legal entities. And Countries may be given some limited options to set an intra-country tax rate higher than the global default of 1%. Collected taxes will be held in trust by a global Custodian created for this purpose alone. We have designed this entity with the highest levels of safety and security in mind, including aspects like cyber security, regulatory oversight, transparent auditing, globally out of reach from nation states to appropriate funds, etc, We will also continue to evolve the security as we go along.

Payback will be distributed to each and every human walking this Earth. Preferential treatment will be given to people that actively use Participating Crypots, as well as to residents of Participating Countries. Everyone will be eligile to sign up for a Payback Wallet, typically starting at the age when they enroll into grade school. On every day thereafter their Wallets will be replenished daily with UBI that was funded from taxes collected during the previous day. This will continue the rest of their life.

Countries can choose to opt in to become a Participating Country. The main requirement for doing so is 1) that they build the wallet infrastructure and share the wallet addresses as well as a (scrambled) identity of all their residents, and 2) that they regulate to make the Participating Cryptos legal to use in their country. A portion of global taxes are set aside as a honeypot for countries that are not yet participating, and held in trust for them until such day that they choose to participate. When countries opt in they can choose to distribute Payback in their own national cryptocurrency or our gloal one, and they can stipulate that some aspects of taxes are retained in-country rather than paid on a global scale.

What problems are we solving with this system? What opportunities are we capitalizing on?

Well, fundamentally it addresses the ever increasing wealth and income gap, on both a national and a global scale. Did you need more arguments? Ok...
Structuring taxation based on borders of nation states makes it next to impossible to levy certain taxes, such as Crypto taxes along with inheritance tax, wealth tax, corporate tax, and transaction tax.
Our system is the first real attempt at a global tax, opening up a whole host of new opportunities.

The crypto economy is seen by a few as potentially enabling money laundering. This system encourages wallet registration, transparency and regulation.
Cryptos are seen by many as an enabler of tax evasion. This system is the first of its kind to start levying tax. In other words, make the Crypto economy work for a common good, just as all other economic systems do.
Some poorer countries are lagging in terms of digital infrastructure. Others may struggle with keeping their citizen/resident/taxpayer registries up to date. This system will provide incentive for residents to self-register in order to receive their daily Paybacks. It will also provide funding mechanisms to build out the required infrastructure in some cases.
Fiat money cannot, by their nature, be taxed at a transaction level, nor at a global level. But Cryptos can.
The world’s economic systems are becoming increasingly volatile, as a side effect of the more and more frictionless and liquid digital economy. Our system reintroduces some friction back into the system in the form of tax, not as a bad thing but for an ultimate good.
Taxation is traditionally fraught with massive inefficiencies and “big government”. Our system removes almost all such inefficiencies, and distributes the money as Payback the following day.
Capitalism, socialism, communism, libertarianism and other “isms” were developed in response to the inefficiencies of fiat economies. Our system shortcuts them all by placing collected funds right back in the hands of people. We call it humanism.

Universal Basic Income is a concept that has become a topic of interest following the “helicopter drops” of money curing Covid. However, those have all been national in nature, and only created in already wealthy nations, and only funded by printing new money which is not sustainable. We are proposing to create a permanent frequent Payback as a basic income that is truly “universal” across the globe. And fully funded.
Cryptos that are designed to be deflationary have no other recourse than “burning” part of their tokens. We provide a better option, which is locking them away "for good." Such locked up coins can still be leveraged to generate yield, which can be diverted into funding more Payback.
The Cryptos in the new digital economy are all looking for one key illusive:: universal acceptance and adoption. Our system proposes to give them a clear and present path towards this goal.

By combining a new global tax on a new global economy to fund a new Universal Basic Income at a global scale of ever increasing value, we are bringing together several major opportunities and solving many of our current globally pervasive problems. It’s a moonshot towards creating a better world!

The Catch-22 Problems With Crypto

Cryptos defy national borders, making them difficult to regulate. They are pseudonymous (and a few are fully anonymous), making it difficult to tie to a tax payer. Tax agencies are crippled and can only recommend users to voluntarily report their capital gains. From a user perspective, actually trying to pay taxes can be even harder than using Cryptos in the first place.

Let's be real about it: Cryptos aren't really contributing their owed dues to society. The piper isn't being paid.

Cryptos are not accepted nor used by a wide public yet. Largely because they arent regulated yet and they don't contribute to taxation. People don't like to condone that kind of behaviour. Governments advice against them.

Meanwhile, Crypto could potentially be used to distribute UBI to everyone on the planet. But we can't, becuase far from everyone uses them. And even if they did, since accounts are pseudonyous, we can't stop users from creating multiple accounts to collect more than their fair share of UBI. Because Countries aren't opening up their databases of IDs to help identify unique users.

In conclusion: Cryptos aren't contributing their their due taxes. Which could be used to finance a UBI. Because Country regulators can't work with Cryptos.