Finally, someone that also has the economic knowledge and the intellectual honesty to recognize that is a tax. We are advancing.
Majorities are not rational, if majorities were rational, democracy would have worked throughout history and democracies always failed. Majorities are irrational, which is why constitutions exists, to limit the majority to do stupid things.
Even if LB practically worked as intended (which it didn’t, it was a total failure on the practical side as well) the issue is that is funded with public money, the moment bakers vote to print extra TEZ, and they can redirect that TEZ to fund a social program, either LB or an insurance fund, whatever social program, doesn’t matter, that TEZ that they printed is PUBLIC MONEY now, that money was not collected charging taxes to each account, to each wallet with balance on it, rather it was printed like the FED does, but it still a tax on the hodler of that money.
So even if the social programs would work…taxes are just very bad fud, the crypto sphere is full of libertarians and anarchists who don’t like the idea of being taxed by another govt, they come here to escape from that.
Why can’t it be done the same with a FA 1.2 token, as a private project with its private investors? Like SUSHI swap does with their own token? And leave XTZ which is the currency of the main protocol free of inflationary taxes?
Why we have to FUD the main protocol currency by taxing current hodlers, while scaring away new capital? New capital knows that the majority vote is not limited, the majority can raise that tax to 100% a year if the majority wants it, there is nothing beside the rationality of the majority that can limit what the majority can do with its vote, new capital will not invest in XTZ knowing that a majority can vote to violate their property rights of keeping the fruit of their labor and hard-earned money. That’s exactly how democracies failed, people thought that the majorities were wise, we all know it was never the case.
Another point against PUBLIC MONEY use, public money is always used to do corruption, public workers always find a way to keep it and enrich themselves and that’s why they always do a bad job.