Introduction
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:
- 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.
- 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.
- Alignment with Cosmos Ecosystem Practices: Adjusting the community tax to 2% brings ZetaChain in line with common practices across the Cosmos network.
Proposal
{
"messages": [
{
"@type": "/cosmos.gov.v1.MsgExecLegacyContent",
"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": "https://example.org/metadata.json"
}
Conclusion
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.
References
For detailed information on the governance process and the distribution module, refer to the Cosmos documentation: Cosmos SDK Distribution module.