Change the Community Tax Parameter to 2%


This proposal is to update the community tax parameter of the distribution module of ZetaChain. The community tax is a mechanism by which a percentage of the fees collected in each block is transferred to the community pool. This proposal aims to change the community tax rate from its current value of 0% to 2%, providing the community with a dedicated fund, tokens from which can be allocated towards projects and initiatives voted by the community of ZetaChain.

Background: Community Pool

The community pool serves as a reservoir of funds intended for initiatives that benefit the ZetaChain community. These funds are collected from the community tax and can be allocated towards various projects or endeavors deemed valuable by the community.

To utilize funds from the community pool, a “community-pool-spend” proposal must be submitted on the network. This proposal must specify the recipient address, the amount of tokens requested, and a detailed description of the purpose for which the funds will be used. Following approval through the network’s voting process, the specified recipient will receive the tokens, with the expectation that they will be utilized as outlined in their proposal.

Positive Effects

Implementing this change will have several beneficial impacts on the ZetaChain community:

  1. Resource Allocation for Community Initiatives: By establishing a community pool, ZetaChain will have a dedicated fund that can be allocated towards projects, improvements, or initiatives that have widespread support within the community.
  2. Incentivization of Participation: A community tax encourages active participation in governance, as stakeholders have a direct mechanism to fund proposals that can enhance the network’s value and functionality.
  3. Alignment with Cosmos Ecosystem Practices: Adjusting the community tax to 2% brings ZetaChain in line with common practices across the Cosmos network.


  "messages": [
      "@type": "/",
      "authority": "zeta10d07y265gmmuvt4z0w9aw880jnsr700jvxasvr",
      "content": {
        "@type": "/cosmos.params.v1beta1.ParameterChangeProposal",
        "changes": [
            "subspace": "distribution",
            "key": "communitytax",
            "value": "0.020000000000000000"
        "description": "Update the community tax to 2% to distribute some of the block fees to the community pool",
        "title": "Parameter change: update the community tax to 2%"
  "deposit": "1000000000000000000000azeta",
  "metadata": ""


This proposal presents a strategic adjustment to the distribution module of ZetaChain, aiming to foster community engagement, fund valuable initiatives, and align ZetaChain with broader ecosystem practices. The introduction of a 2% community tax represents a commitment to development and the shared success of the ZetaChain network.


For detailed information on the governance process and the distribution module, refer to the Cosmos documentation: Cosmos SDK Distribution module.


I think there are lot of benefits from having a Community Pool. However since we don’t have inflation in the blockchain, the way to fund it would be to use the rewards from tx fees, which then would decrease the staking APR which is not ideal as we want to incentivize delegation as much as possible (APR is already lower because of no inflation rate)

Another solution can be to consider funding from emissions pool but since it represents an already pre-allocated pool of tokens, I would consider funding directly the community pool with a fixed amount makes more sense than funding over time.


I agree with the idea of using the tx’s reward

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Very thoughtful denis. Considering the implications of adjusting the Community Tax Parameter to 2%, how do you anticipate this change will influence the prioritization and execution of community-led initiatives within ZetaChain’s ecosystem?


Totally agree with 2%, it’s fair enough, and especially that we will be in line with cosmos network!

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I think the main benefit of this is that it will stimulate third-party contributions to the protocol: the community will be able to vote on funding development of the features in a decentralized and consequential way.


I think this a great way to help fund development by third parties! Attracting more quality builders is to everyone’s benefit. :slightly_smiling_face:.


Good idea, i agree. I already want to see what the impact on the community will be


I agree this idea. that’s good.


I agree this proporsal

It’s unfortunate to see such little activity here. Hundreds of thousands of wallets competing on the leaderboard for airdrop, but no one cares about governance. I’d like to see this move to a vote. It will be interesting to see how many wallets bother to vote and if we can reach quorum. I think @denis put good effort into articulating this and I’d like to hear any discussion against.


We just got quorum for the last governance proposal for cosmos upgrade. I don’t like governance proposals to be voted on 24 hours, Make more sense to have 5 days for the voting period.

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Yes, I agree @Samit0.eth 5-7 days is much better. I think a full week makes the most sense to give people enough time to review and discuss. No benefit to have only a small portion of the community rush to a vote.


Yes,I agree this proposal.

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Its good for me fast and secure Zetachain