Harberger Taxes is an economic abstraction that aims to democratize the control of assets and prices. In this taxation system, asset owners self-assess the value of assets they own and pay a tax rate of X% on that value. Whatever value owners specify for the asset, they have to be willing to part ways and sell it to anyone at that price.
Harberger Taxes on Hestia works as follows:
- NFT owners determine the value of their asset and pay taxes on that price.
- Anyone, at any time, can acquire the NFT at the owner’s price, immediately taking ownership of the NFT upon purchase. The new owner can then set a new price.
NFT owners are incentivized to set a low price to minimize the amount taxes they have to pay. At the same time, owners are incentivized to set a price high enough to discourage others from buying it away too easily. This creates a balancing act for owners to price an NFT at the value they are willing to pay to keep it.
Because of these opposing pressures, NFT owners can’t set impossibly high prices nor refuse reasonably priced offers. This creates a more efficient and equitable market. Additionally, it provides Creators on Hestia with a continuous revenue stream with the taxes payed by the owners.
Combining Harberger Taxes with a Decentralized NFT marketplace posed an interesting challange, Hestia brings lots of innovations to help build a better ecosystem for NFTs as follows,
In conjuction with the economical model Hestia offers,
⚡ Lightning fast transactions powered Matic Network.
⛽ Gasless creation and sale of NFTs powered by Biconomy, pay gas in any token like DAI via Biconomy Forward.
🌊 Seamless streaming of annual taxes powered by Superfluid SuperApp contracts and streams.
🔗 Buy and Sell NFTs using any approved token with external API calls used to validate prices powered by Chainlink Oracles.
💱 Realtime cryptocurrency spot exchange rates for our Smart Contracts and Frontend powered by 1Inch Exchange API.
🌐 Seamless logins without any additional extensions powered by Portis.
📊 Realtime data of contract events powered by Covalent.
🔀 Intercompatible with Binance Smart Chain, fetching realtime data from Bitquery.
📌 Distributed Storage powered by IPFS, Pinata, Arweave, Textile and Fleek.
Demo 👉 https://youtu.be/2KxGhnPXYsw
Website 👉 https://hestia.anudit.dev
Github 👉 https://github.com/anudit/hestia
🥇 Hestia was the Winnner of 6 prizes at Etherpunk